According to the government, the $91 billion mark is a 40% increase on its previous goal and will be powered by 40,000 extra hotel rooms and a focus on experience-led tourism, as well as celebrating First Nations culture and businesses.
In addition, the plan is to add 8.5 million extra airline seats, which should hopefully be met through increased aviation capacity through the Turkish Airlines route to Sydney, more international routes through Newcastle, the opening of the Western Sydney International Airport, and growth in cross-border arrivals through Canberra and the Gold Coast.
While these are lofty goals set out by the government, there will be challenges ahead, including tackling significant worker and skill shortages in roles such as tour guides, as well as the need for increased business event facilities in Sydney, Western Sydney, and regional areas.
The NSW Tourism Association supports the government’s ambitions for the future, but has also called for adequate funding and full industry involvement to help realise the vision.
Beyond infrastructure investments and policy reviews, the Association said multiple government departures will need to collaborate and that ideally, agencies outside of tourism should be included in conversations. These include those involved in planning, education, transport, public lands and regional development.
“Tourism and the visitor economy are all about collaboration, and we look forward to working with the government on realising these goals… with industry” said Lori Modde, chair of the NSW Tourism Association.
In addition, the role of Destination NSW must be clearly defined, said CEO Natalie Godward.
“Marketing plays a pivotal role in attracting tourists, and we believe Destination NSW should work closely with the destination networks and industry to ensure that promotional efforts align with the needs of the tourism operators and stakeholders in Sydney and across our regions.”
Rich, immersive visitor experiences were a key topic discussed at the recent NSW Visitor Economy Forum, hosted by Destination NSW. One of the keynotes was delivered by Lonely Planet Chief Technology Officer Gus Balbontin.
“Giving your customers an experience they will never forget is a certain way to drive innovation in your business and stay relevant. The pursuit will inevitably deliver uniqueness, authenticity, surprise and delight,” he said.
“Customers’ needs and expectations are continuously shifting – if you invest in your adaptability and embrace novelty your ability to delight the customer with unforgettable experiences increases.”
Aviation challenges on the horizon
Given the correlation between international passenger visitation to NSW and the state’s international aviation capacity, strong aviation capacity growth is vital to attract more visitors, aviation analyst Tony Webber believes.
In a practical sense, more aviation capacity will keep airfares as low as they can be, which will in turn promote greater travel, he noted.
However, a challenge that the government will face is the weak Australian dollar.
“Foreign airlines like it when the Australian dollar is strong, because when they sell tickets to Australians, they receive in return Australian dollars, which translates into more of their own currency,” Webber observed.
Webb is also skeptical of the Government’s plans to boost domestic aviation capacity.
“Given the lack of competition in the domestic market and the fact that pre-COVID aviation capacity was stable for five years, I can’t see that capacity changing over the period ahead, unless a new carrier enters the market, and that carrier enters the market at a sufficient scale (20 to 30 aircraft at least),” he told travelBulletin.
