So-called experience-based travel will form a cornerstone of a state goal to top $90 billion in annual visitor spending in NSW by 2035, way up from 2023's record $53 billion.
Any increase would come off the back of an aviation capacity boost, with the opening of the new Western Sydney Airport and an international upgrade at Newcastle Airport.
But 40,000 extra hotel rooms, many more chefs and tour guides and better business event facilities state-wide would be needed, according to a government review of its visitor economy strategy.
Regional NSW needs to boost accommodation to reap the benefits of a potential tourism boom. (Dave Hunt/AAP PHOTOS)
The review, which will inform the NSW 2035 tourism plan, found almost half of the $91 billion target could be spent in regional communities.
But the quality of accommodation in those areas would need to improve to reap the rewards, it added.
Former Tourism Australia chief Andrew McEvoy, who co-authored the review, said the regions already benefited greatly from the jobs that flowed from the industry.
"If you're a local who wants to stay local, it's an opportunity," he said.
The travel sector would need to develop itineraries that combined iconic Sydney attractions, such as the Opera House, with regional experiences.
NSW's travel sector needs to leverage Sydney's sites to entice visitors to regional areas. (Dean Lewins/AAP PHOTOS)
The review highlighted the need to build a strategy around "experience tourism" that allowed visitors to appreciate local culture.
That included "leveraging Sydney's 'first light culture'" of morning activities, wellness and the city's "vibrant brunch scene", it said.
Premier Chris Minns said people visiting "the most beautiful city on earth" could also be attracted to NSW's diverse regional destinations.
"Ninety-five per cent of the businesses who are working in tourism employ 20 people or less and a big number of them are located in regional NSW," he said.
Experience tourism, especially in regional areas, is expected to drive NSW's growth. (JASON O’BRIEN/AAP PHOTOS)
To deliver on the tourism goals, NSW would need to add more flights, dominate the business events sector and get more out of the international students boon, the review said.
Tourism figures from the June quarter show Australian international visitor numbers remain below pre-COVID levels, but those who come are spending more when compared to 2019 totals.
Sydney is the nation's top destination for overseas tourists, but it lags Melbourne and the Gold Coast for domestic travellers.
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