New strategy cements tourism as a critical pillar of NSW future growth

The honour of being chosen the best city in the world has been somewhat tainted by the plethora of awards but news that Sydney has been named the world’s best in a survey of Condé Nast Traveller UK readers is certainly a welcome achievement. The luxury and lifestyle travel magazine’s award is one of the most long-standing and prestigious prizes, and for good measure, our Harbour City also placed third in the magazine’s US Readers’ Choice Awards.

Australia’s leading Aboriginal and Torres Strait Islander performing arts company, Bangarra Dance Theatre.

With results like that, you’d be forgiven for thinking Sydney was experiencing an international tourism boom. The reality is different: according to the most recent International Visitor Survey data from Tourism Research Australia, Sydney welcomed 3,446,000 foreign visitors in June, a figure 16 per cent below pre-pandemic levels for the same period in 2019.

While the accolades of the best city are a way of putting Sydney on the radar of high-value international travellers, the Minns government is after a much bigger catch: NSW is poised to embark on a major shake-up of its tourism strategy as it attempts to nearly double visitor spending in a decade by shifting focus to leisure experiences, building 40,000 new hotel rooms and adding millions of airline seats. Much of the growth is aimed at a rebounding Chinese market, which could transform the state’s annual $51.4 billion visitor economy into a $91 billion powerhouse by 2035 as set out in a government review of the NSW Visitor Economy Strategy.

The way Sydney is sold to Australia and the world will also change. Marketing will showcase the city’s “first light” culture of morning activities, wellness activities and “the vibrant brunch scene”. The Visitor Economy Strategy is anchored around “experience tourism”, a reflection of growing consumer desire for connecting authentically with local culture. As part of the change, First Nations culture will also be celebrated through authentic visitor experiences and support for First Nations businesses.

In addition, the new strategy will aim to capitalise on Sydney’s $2.8 billion leisure events program with a year-round calendar and to tap the potential of the $686 million business events sector through opportunities in science, technology, manufacturing and agriculture, particularly in western Sydney and in regional NSW. The opening of a new international terminal at Newcastle Airport next year and Western Sydney Airport in 2026, expected to deliver 8.5 million visitors, will help drive expansion.

Sydney currently sits behind Melbourne and the Gold Coast as favoured holiday destinations for Australians and the ambitious growth targets will enable tourism to play a larger role in the state’s economy, its labour market and its export mix as NSW moves away from coal and other traditional industries.

For too long, tourism strategy has been confused, short-sighted and a little under-cooked. Key components of the industry such as airlines, accommodation providers, government agencies, arts and cultural institutions, food venues and many others have been very keen for governments to settle on a strategy that they can all understand and work towards. The government’s move towards a longer-term tourism strategy is to be applauded.

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