AUSTRALIA | The NSW Government has outlined a strategic plan to boost annual visitor expenditure in the state by 2035.
The NSW Minns Government has announced it will adopt a more ambitious goal of AUD $91 billion in annual visitor economy expenditure by 2035 – a 40 percent increase on the previous goal.
The accelerated growth is expected to provide a big economic windfall for regional communities, with $44 billion (48 percent) of the AUD $91 billion expected to be spent in regional NSW.
This ambitious growth trajectory will further cement tourism as a critical pillar of future growth in the NSW economy, driving up to 150,000 new jobs by 2035.
The next decade of growth in the visitor economy will be underpinned by a potential increase of 8.5 million airline seats due to the new Newcastle Airport international terminal opening in 2025, the opening of the Western Sydney International Airport in 2026, increased capacity at Sydney Airport and growth in cross-border arrivals through Canberra Airport and Gold Coast Airport.
The Minns government has already been working to boost aviation capacity through support for the recently announced Turkish Airlines route to Sydney Airport and an agreement to support Newcastle Airport to attract more international routes.
This additional capacity will increase competition, providing a greater incentive for European travellers to choose NSW as their holiday destination and put downward pressure on the cost of holidays for NSW families.
To meet the AUD $91 billion stretch goal, the review highlights key challenges, including the need for 40,000 extra hotel rooms, a 41 percent increase on what’s currently available. Significant worker and skills shortages in roles such as tour guides and chefs is also needed, as well as the need for increased business event facilities in Sydney, Western Sydney and priority regional areas.
The Minns government has begun work on attracting more business events with a AUD $1.5 million increase in funding for Business Events Sydney in FY25.
Confirming the international appeal of the experiences on offer in Sydney, last week the NSW capital was voted ‘best city in the world’ in the Condè Nast Traveller UK’s 2024 Readers’ Choice Awards. The poll cited Sydney’s ‘unique, indoor-outdoor way of life’ which speaks directly to the review’s recommendation to focus the NSW Visitor Economy Strategy on ‘experience tourism.’
The NSW visitor economy is the biggest in Australia, achieving a record AUD $53 billion in expenditure in FY24 and employing almost 300,000 workers. The NSW Visitor Economy Strategy 2030 had a target of AUD $65 billion. The review into the 2030 strategy will inform the new NSW Visitor Economy Strategy 2035, which will be released in the coming months.
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