I just wanted to know which one would you recommend for view penguins out of these two places. I am somewhat confused. What are the differences or are they both really the same thing.
Thanks, Vic.

Different types of penguins for one. Oamaru has a colony of little blue penguins. Penguin Palace in Dunedin has yellow eyed penguins.

I've seen the penguins in Oamaru, but not in Dunedin. In Oamaru, the little blue penguin colony is located very near town. You pay your admission then go sit on covered bleachers near the beach and watch the penguins come ashore at dusk. They have special lighting which helps you see the penguins while protecting them. Filming and photography are not permitted. You can sit there as long as you like, sometimes several hours.

Penguin Place in Dunedin offers guided tours through the colony and their tours run throughout the day. Apparently you view the penguins from hides and they only take small groups. I have no personal experience with this one, but I'm sure someone who does will chime in.

Then there's the Pohatu Marine Reserve penguin viewing on Banks Peninsula where you're lead on a tramp to look at penguin hides and view them come to shore from a distance. Great tour by the way.

http://www.pohatu.co.nz/penguin-tours.wse