The tourism sector warns the NSW Budget has come as a ‘major blow’ for the industry, leaving the state on the back foot as other destinations step up their fight for visitors, events and investment.
Tourism & Transport Forum (TTF) Australia CEO Margy Osmond said cuts to funding for Destination NSW and no funding certainty beyond next year sends the wrong signal to one of the state’s critical economic engines.
“This budget is incredibly short-sighted. New South Wales should be out there selling itself hard and instead we’re seeing funding to promote the state wound back and no clarity on what happens after next year. That’s not how you stay competitive,” Ms Osmond said.
“It makes it almost impossible for the industry to plan, invest or compete when you don’t know what support looks like beyond a 12 month window.
“Sydney is Australia’s global gateway and when tourism and events are strong here, the whole country benefits. But right now, we’re at real risk of slipping backwards.
“Other states are leaning in, bidding harder, locking in events, investing in marketing, and New South Wales should be helping set the pace.”
Ms Osmond said the consequences would be felt well beyond Sydney, especially as competition intensifies ahead of the Brisbane Olympics and beyond.
“If New South Wales isn’t actively in the market, those major events and visitor flows don’t just disappear, they go somewhere else. And that hits everyone from hotels to restaurants, attractions and all the regional towns that rely on visitors to keep ticking,” she said.
She noted that tourism remains a key driver of the state’s economy, with NSW welcoming more than 127 million visitors over the past year and visitor spending reaching a record $60.4 billion.
“Those results don’t happen by accident. You have to fight for them. They are the product of sustained investment in promoting New South Wales and attracting visitors from across Australia and around the world,” she said.
Despite those concerns, TTF has welcomed measures in the budget to reduce travel costs and support connectivity across the state, including saving drivers on private vehicle registrations, lowering the weekly toll cap and freezing Opal fares at 2025 prices.
“These changes are a positive step towards easing the pressure on families dealing with higher fuel costs, encouraging more road trips and greater use of public transport,” Ms Osmond said.
TTF has also welcomed the significant $116 billion investment in infrastructure, including $6.5 billion for new electric buses and depots and funding for the new Western Sydney International Airport’s dedicated metro line.
Ms Osmond also applauded the $2.6 million announced to improve the state’s FuelCheck app and strengthen fuel price transparency.
“This is a fantastic move from New South Wales and reinforces what we’ve been saying for some time. Australians shouldn’t have to rely on different state-based systems when they’re planning travel across the country,” she said.
“This is why we’re calling for a nationally consistent fuel information platform to give drivers access to fuel information wherever they are in Australia, to give more travellers confidence to take that road trip.”
She also welcomed $130 million for national parks, and a further $1.21 billion for arts, music and the night-time economy, which remain critical to maintaining NSW’s competitive edge.
ENDS