Tourism to become $91 billion cornerstone of NSW economy
Tuesday, 8 October 2024
Millions of extra airline seats, tens of thousands of hotel rooms and a focus on experience-led tourism will transform the state’s visitor economy into a $91 billion powerhouse as set out in a government review of the NSW Visitor Economy Strategy.
The Minns Government will adopt a more ambitious goal of $91 billion in annual visitor economy expenditure by 2035 – a 40% increase on the previous goal. The accelerated growth is expected to provide a big economic windfall for regional communities, with $44 billion (48%) of the $91 billion expected to be spent in regional NSW.
Q&A at BusinessSydney Breakfast to launch a review of the Visitor Economy Strategy with Minister John Graham
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 $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
- Significant 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.
Minister for the Arts, Minister for Music and the Night-time Economy, and Minister for Jobs and Tourism John Graham
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 has begun work on attracting more business events with a $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 $53 billion in expenditure in FY24 and employing almost 300,000 workers. The NSW Visitor Economy Strategy 2030 had a target of $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.
A summary of the review of the NSW Visitor Economy Strategy 2030 is available here.
“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.”
