All NSW adults will receive a $50 voucher to redeem at accommodation premises across NSW.
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The $250 million for the expanded stay and rediscover scheme is part of the state government's $530 million investment in reviving events across the state and getting tourism back on track.
"Millions of people around the world dream of visiting Sydney and our regional areas. This package not only ensures they can, but that they'll experience the very best of what we have to offer," Premier Dominic Perrottet said.
"It's also great news for people right across our state, reviving events and businesses and bringing our major drawcards back to life. Importantly, more than 300,000 people rely on our tourism industry and our aim is to reclaim our position as one of the world's favourite destinations."
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The tourism and events recovery package, part of the state government's COVID-19 Economic Recovery Plan, includes $150 million to support the recovery of major event activity across the state, $60 million for an Aviation Attraction Fund to incentivise international airlines to re-commence flights to Sydney, $50 million for the CBDs Revitalisation Program and an Event Saver Fund to provide immediate support to organisers if events are cancelled.
NSW Tourism Industry Council executive manager Greg Binskin said the new fund will allow organisers to start planning for a "cracking" 2022.
"The new $50 Stay and Rediscover vouchers will encourage families to get out and explore NSW and experience places they have always wanted to visit, helping the visitor economy make up ground lost due to lockdown," Mr Binskin said.
"Combined with additional Dine and Discover vouchers to spend on local food and experiences, a holiday, attend an event or a visit to family and friends is now on the table for NSW residents.
"The uncertainty of snap lockdowns has crippled the events industry; this new fund will allow organisers to start planning today for a cracking 2022.
"As the weather warms, the new Event Saver Fund will bring confidence back to event organisers as they start to plan and prepare to relaunch events and festivals that have hibernated during lockdowns."
The vouchers will commence as a pilot program this year and then will kick-in statewide in March. NSW Shadow Minister for Jobs, Investment and Tourism, David Harris said that is too late for tourism operators to recover, after being decimated over the last four months.
"The Premier said today that NSW would not just bounce back, they would fly back, but t's hard to fly with clipped wings, with vouchers not available until March next year," Mr Harris said.
"A $50 voucher in six months' time isn't exactly the stimulus tourism operators and accommodation providers were expecting. Tourism operators can't afford to wait until next year for relief.
"The Government should have had these vouchers ready to go by November 1 when regional travel resumes and well ahead of the Christmas/New Year holiday period when families will be able to travel."