The Minns NSW government announced its third state budget last week, with tourism and Western Sydney being considered ‘winners’.
Tourism
Key tourism Budget highlights include:
- $135 million for Destination NSW events, promotion and industry support, focused on the visitor economy.
- $1.66 billion investment in the state’s broader creative economy, including arts, festivals, museums and night-time activation.
- $30 million committed to a new ferry wharf at the $836 million Sydney Fish Market, improving access and attracting visitation.
- $50 million allocated to convert part of Moore Park Golf Course into public parkland, enhancing green space and liveability in Sydney.
- $1.5 million boost to the Regional Event Fund to support destination events and overnight visitation across regional areas.
- $100 million to support the search for a second film studio in Sydney, including to select a location site.
- $280.6 million for the NSW screen and digital games sector, through the Made in NSW fund and existing rebate programs.
A Destination NSW spokesperson told Travel Weekly: “The NSW Government’s 2025–26 budget demonstrates a strong and continued commitment to growing the state’s visitor economy.
“This investment will enable us to drive visitor demand through expanded aviation access and supporting the development of world-class experiences and events across the state.
“With new international gateways opening in Western Sydney and Newcastle, this funding positions NSW to welcome more global visitors and deliver the coastal, country and cultural experiences that make our state truly unforgettable.”
However, the allocated funding is significantly lower than the $324.5 million in last year’s budget.
NSW Tourism Association has called for a more strategic, future-focused approach to tourism investment. They warned that the Budget did not go far enough to meet the critical challenges facing tourism operators across both regional and metropolitan areas. These challenges include rising costs, increased regulation, workforce shortages and shifting visitor patterns.
NSW Tourism Association CEO Natalie Godward described it as a “a status quo budget”.
“As other states across Australia use tourism to grow their economies, it’s critical that NSW can keep pace,” Godward said. “We need to be at the forefront of route development and visitor attraction, not playing catch-up.”
The association has identified four key areas where it says the budget falls short:
- No new destination marketing campaigns to directly stimulate visitation to regional NSW.
- No targeted support package for tourism businesses grappling with rising operational costs.
- Limited investment in visitor infrastructure, experience development, or digital capability across the regions.
- No renewed funding for the Aviation Attraction Fund to support route development and visitor growth.
“As costs and competition increase, it will mean Destination NSW will have to do more with less,” Godward added.
WSI
The budget also had a focus on Western Sydney, with the Treasurer calling the area “the future of New South Wales”.
To date, the Australian and NSW Governments have committed more than $19 billion to deliver vital transport infrastructure for Western Sydney that will support customers using Western Sydney International (Nancy-Bird Walton) Airport (WSI) from next year onwards. The 2025-26 Budget has earmarked further funds for Western Sydney.
Some of the major allocations include:
- $10.8bn over four years for the Sydney Metro West, which will connect Greater Parramatta with Sydney’s CBD.
- $5.5bn for Western Sydney roads.
- $801.4m for a city to South West Metro – delivering the final stage of the extension to the M1 line.
- $3.9bn in additional funding to upgrade and build new schools across the area.
- A further $3.4bn will be invested over the next four years in health infrastructure in the region.
A spokesperson for WSI told Travel Weekly: “We welcome the ongoing investments from the State and Federal Government that will continue to deliver upgraded roads, expanded bus routes and a metro rail connection to enhance transport access for passengers and workers to Sydney’s new 24-hour international airport.
“These critical investments will help ensure our customers and airport precinct workers have a variety of options to get to and from WSI.”
