Every adult in New South Wales will get an AU$50 voucher to spend on a hotel in the state, as the new premier promised a bright summer after a dark winter.
The AU$250m scheme - coined Stay and Rediscover - will build on the success of the Dine and Discover programme and is part of a broader plan to boost the tourism industry after months of lockdown.
Premier Dominic Perrottet said it has been hard for tourism operators with the borders closed, and they are getting one step ahead for when borders reopen.
Airlines will also benefit from the AU$530m tourism and events support package, which includes an AU$60m aviation attraction fund.
NSW's tourism minister, Stuart Ayres, said Australia's closed borders had forced airlines to avoid Sydney, and he wants to lure them back by offsetting the costs.
Last week, Perrottet announced that NSW would soon step away from hotel quarantine and self-isolation for international arrivals. But not long after, Australian Prime Minister Scott Morrison said the federal government would not be welcoming international tourists in the immediate future.
The tourism and events package also includes AU$150m to re-start major events, an AU$25m support fund for musical festivals, AU$50m to revitalise the CBD, and funding for business events, cancelled events, and recovery marketing.
