Tourism to become $91 billion cornerstone of NSW economy

ROBERT HEYWARD

Millions of additional airline seats, tens of thousands of new hotel rooms, and a focus on experience-led tourism are set to transform New South Wales’ visitor economy into a $91 billion industry, according to a government review of the NSW Visitor Economy Strategy.

The Minns Government has outlined an ambitious new goal of reaching $91 billion in annual visitor expenditure by 2035, a 40% increase from the previous target. This accelerated growth is expected to deliver signifcant economic benefts, particularly for regional communities, with $44 billion—or 48%—of the projected total anticipated to be spent in regional NSW.

This growth trajectory will position tourism as a key pillar of the state’s future economy, potentially creating up to 150,000 new jobs by 2035.

Key drivers of this growth include an estimated increase of 8.5 million airline seats, thanks to the opening of Newcastle Airport’s international terminal in 2025, the Western Sydney International Airport in 2026, expanded capacity at Sydney Airport, and cross-border arrivals through Canberra and Gold Coast airports.

The Minns Government is already taking steps to enhance aviation capacity, including supporting Turkish Airlines’ new route to Sydney and an agreement to help Newcastle Airport attract more international fights. This increased capacity is expected to boost competition, encourage more European visitors to choose NSW, and help reduce holiday costs for NSW families.

To meet the $91 billion stretch goal, the review highlights key challenges including:

• The need for 40,000 extra hotel rooms, a 41% increase on what’s currently available

• Signifcant worker and skills shortages in roles such as tour guides and chefs

• Need for increased business event facilities in Sydney, Western Sydney and priority regional areas.

The review sets out a series of recommendations for achieving the stretch goal including:

• Prioritise the NSW Visitor Economy Strategy as a government-wide economic focus.

• Anchor the Visitor Economy Strategy around ‘experience tourism’

• Celebrate First Nations culture and businesses through authentic visitor experiences.

• Increase accommodation quality across regional NSW and quantity in Greater Sydney.

• Boost aviation capacity in key domestic and international markets.

• Leverage leisure events to grow season al visitation and showcase NSW’s strengths.

• Dominate Australia’s business events sector.

• Capitalise on NSW’s status as being number one for international students.

• Foster a diverse, skilled visitor economy workforce.

The Minns Government is stepping up efforts to attract more business events, with an additional $1.5 million allocated to Business Events Sydney for the 2025 fnancial year.

Highlighting Sydney’s global appeal, the city was recently named the ‘Best City in the World’ in Condé Nast Traveller UK’s 2024 Readers’ Choice Awards. The poll praised Sydney’s unique indoor-outdoor lifestyle, perfectly aligning with the review’s recommendation to focus the NSW Visitor Economy Strategy on experience-driven tourism.

As the largest visitor economy in Australia, NSW achieved a record $53 billion in expenditure for FY24 and employs nearly 300,000 workers.

The NSW Visitor Economy Strategy 2030 originally set a target of $65 billion, and the current review of the strategy will guide the development of the new NSW Visitor Economy Strategy 2035, set to be released in the coming months.

Premier of New South Wales Chris Minns said:

“From pristine beaches to lush national parks, NSW is an unbeatable hotspot for tourists across the globe.

“People coming to New South Wales for a holiday is at an all time high, but this review shows there are opportunities to grow it even more, partially due to more airports opening and more fight routes being secured.

“We are ready to put our shoulder to the wheel and attract even more travellers to NSW, boosting local business and creating thousands of jobs.”

Minister for the Arts, Minister for Music and the Night-time Economy, and Minister for Jobs and Tourism

John Graham said:

“This is a very exciting moment for the NSW visitor economy. We’re taking a sector that is already very strong and raising our ambitions even higher.

“This review dares us to dream big, but it also outlines the hard work needed to meet the opportunity.

“To reach this ambitious new target we need to build more hotel rooms, attract and train more workers and create and market the experiences that connect visitors with the culture, nature and people of NSW.

“NSW has the nature, the culture and incredible experiences. We just need to match it with hard work and planning.”