New South Wales’ visitor economy will soon receive a fresh boost through the $12.5 million NSW Take Off Fund, unveiled by the state government last week.
The cash injection will help to increase airline seat capacity by 8.5 million seats over the coming years, in addition to offering financial and marketing support to international and domestic airlines that commit to launching new or additional services into the state.
As Sydney prepares to begin service from Western Sydney International from late next year, the fund will work to attract new airlines and help existing carriers expand services into Australia’s largest city.
Beyond the capital, the fund will also help regional centres such as Newcastle, which has just opened its terminal ahead of schedule and is now eyeing flights to short- and medium-haul destinations such as the South Pacific, Southeast Asia and even as far away as the Middle East. It has already secured nonstop services to Denpasar, which will take off from late Oct.
Speaking to travelBulletin, Australian Airports Association CEO Simon Westaway said aviation attraction initiatives like the Take Off Fund play an important role in unlocking new routes, increasing capacity and boosting air connectivity.
“These funds help airlines and airports work together to open up more destinations for Australians, while also making NSW more accessible to international visitors,” Westaway said.
“By expanding the network of viable air services, the Fund strengthens the visitor economy and supports regional development through greater travel options. Investments like this not only meet growing passenger demand but also position aviation as a key enabler of economic recovery and tourism growth.”
Past government initiatives have included the Aviation Attraction Fund and the Western Sydney International Take-Off Fund, both designed to support three of NSW’s international gateways, including Sydney, Western Sydney and Newcastle.
Natalie Godward, CEO at the NSW Tourism Association, echoed Westaway’s sentiments.
“This new Take Off Fund sends a clear signal to airlines and tourism operators that NSW is serious about securing new routes, increasing seat capacity and sharing the benefits of visitation across the whole state,” she said.
The latest government initiative comes off the back of a slew of new routes from NSW airports that have been confirmed. Sydney Airport recently debuted new indirect (for now) routes to Istanbul via Kuala Lumpur through Turkish Airlines, and Shanghai through Juneyao Air, while also boosting capacity on routes to India, South Korea and Southeast Asia.
Meanwhile, Air New Zealand will run flights from Western Sydney International Airport to Auckland from mid-2027. The carrier joins other partners including Singapore Airlines, Qantas and Jetstar as early tenants at the new airport.
However, Godward also pointed to the struggles that New South Wales faces in terms of dispersal – and how regional aviation can solve those challenges.
“We’re such a big, broad, wide area. I flew [into Sydney] this morning from Merimbula on the 6:30 flight, and tomorrow morning I’m flying to Byron. There is no way I could get from the most southern to the most northern part of our state on the same day and do it all. There’s no train and the buses are sporadic,” she told travelBulletin.
“The only answer is regional aviation to connect everything that we’re doing.”
Similarly, Westaway pointed to the challenges facing the state’s regional routes, which “remain on a knife-edge” because of high operating costs and limited competition.
“We need long-term funding and policy certainty to maintain and upgrade airport infrastructure, especially in regional NSW where tourism is often the lifeblood of local economies,” he said.
“Sydney, Newcastle and Western Sydney airports have shown what’s possible with the right investment – but more needs to be done to unlock that potential across the state. We’d particularly like to see funding certainty with longer-term commitments for state aviation funds like the Take Off Fund.”
In the NSW Government’s latest budget handed down last month, Destination NSW was handed $324.5 million, the same allocation as last year, although Godward said it did not account for inflation or the need for expanded support to help the sector recover, particular in regional areas.
Plenty of regional tourism operators are still struggling with workforce shortages, cost pressures, regulatory increases and declining visitation, she said.
“There is a significant opportunity to drive economic uplift by better supporting regional operators with infrastructure investment, marketing, and business development,” said Godward.
“This is more than just recovery – it’s about ensuring NSW remains attractive and competitive in a dynamic global tourism market.”
