Insights - 22 June 2021 - NSW State Budget

$373 MILLION KEEPS NSW ON TRACK TO BE PREMIER VISITOR ECONOMY OF THE ASIA PACIFIC

The NSW Government is injecting $373 million to accelerate the recovery of the State’s visitor economy.

Sydney and NSW will be positioned to attract more visitors through new campaigns, events, expanded partnerships, and industry development initiatives.

In today’s State Budget, the NSW Government has reaffirmed its support for the tourism industry through increased annual funding.

Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres said the NSW Government was committed to turbocharging the State’s recovery from COVID-19.

“Our visitor economy is a significant contributor to our State’s success and prosperity, and we will continue pursuing our ambition to be the premier visitor economy of the Asia Pacific,” Mr Ayres said.

“That means more visitors, greater visitor expenditure, incomparable visitor experiences and unforgettable events that will make Sydney and NSW the envy of our competitors.

“We are getting on with the delivery of NSW’s Visitor Economy Strategy 2030 and we are confident that visitors will return to NSW in droves, and discover experiences they’ll want to come back for and tell all their friends about.”

The 2021-22 State Budget includes a range of initiatives that will support the recovery and growth of NSW’s visitor economy. Key programs that will be delivered by Destination NSW in the upcoming financial year include:

Securing high-impact events for Sydney and regional NSW through a new $200 million State Significant Event Fund over four years
Marketing to promote visitation to Sydney and NSW, including new campaigns
Promoting existing domestic and international airline routes to Sydney and regional NSW; and
Ongoing investment in the visitor economy from product and industry development and regional conferencing programs.

We have seen a strong recovery in tourism expenditure across the State with some work still to be done in the Sydney CBD. There are positive signs of the State’s ability to build back stronger with the Westpac Destination NSW Tourism Expenditure Monitor revealing that spending during the quarter to March 2021 is 27 per cent higher than the same time last year.

Transport and Tourism Forum CEO Margy Osmond said the State Significant Event Fund showed a proactive approach to visitor economy recovery and growth by the NSW Government.

“It’s like a double shot in the arm to help restore NSW tourism. With these major events comes not only the spend on the event itself but also the associated flow-on spending on interstate and intrastate flights, on retail at airports, on accommodation, on food and beverage and on attractions and public transport particularly in our struggling CBD,” Ms Osmond said.

“Attracting and hosting major events will be vital for restoring the domestic travel market and eventually the return of international visitors. It is very pleasing to see the NSW Government getting on the front foot to ensure the state gets its slice of the pie.”

Business NSW Tourism Executive Manager Greg Binskin said: “The NSW Budget will ease pressure on the NSW Visitor Economy, particularly in Sydney, as it continues to be heavily impacted by international travel restrictions and state border uncertainty.

“International tourists spend more than their domestic counterparts and filling the void was never going to be easy. The Budget goes some way to replacing those visitors through new campaigns, events, expanded partnerships and industry development initiatives,” he said.

SYDNEY CBD TO RECEIVE SIGNIFICANT INJECTION
OF SUPPORT

The NSW Government’s ongoing commitment to CBD revitalisation has been given a significant boost through a raft of initiatives outlined in today’s State Budget.

Businesses in the Sydney CBD heavily impacted by the pandemic will benefit from a new iteration of the Dine & Discover stimulus program worth $50 million that will offer 500,000 NSW residents four $25 vouchers to use for dining and entertainment experiences on Fridays.

Treasurer Dominic Perrottet said the vouchers, which can only be used on Fridays, will boost the city economy, support jobs and bring fizz back to Friday in the city.

“We have listened to businesses and know that it’s time to make Fridays fun again and ensure the Sydney CBD doesn’t just survive but thrives,” Mr Perrottet said.

“This will be a targeted program designed to get more people back into the heart of the greatest city on earth and on the way through spend a little extra on retail and services businesses.

Eligible businesses must be physically located within postcode 2000. Customers must be aged 18 and over and must have a MyServiceNSW account. Each individual voucher can only be used once, can only be redeemed on Fridays and vouchers can be added together for a single purchase up to $100. Further details will be released in due course.

Other key programs to receive funding in the upcoming 2021-22 Financial Year are:

$20 million for delivery of a CBD accommodation voucher program
$20 million for the CBD revitalisation program for a range of initiatives to encourage increased spending and mobility in the CBD; and
Cahill Expressway to be temporarily transformed into a world-class stage from 31 December 2021 to 6 January 2022.

The initiatives have been met with widespread support from visitor economy stakeholders who have welcomed the targeted Sydney CBD programs.

The Property Council of Australia NSW Executive Director Jane Fitzgerald welcomed the investment in Dine & Discover Fridays and said: “Putting $100 into the pockets of CBD workers – and tying the use of the vouchers to the day where we know less people are currently working from their CBD offices – is a great way to give other CBD businesses a boost and encourage teams getting together.

“Governments have a key leadership role to play to fire back up our CBDs so this investment by the NSW Government right now is vital. The Sydney CBD is the economic heart of the nation. About seven percent of the country’s GDP is generated in our CBD so Sydney getting its groove back is integral to the economic health of the nation,” Ms Fitzgerald said.

Tourism and Transport Forum CEO Margy Osmond said TTF had long been advocating for the Cahill Expressway to be converted to an experience akin to New York’s High line. She said: “New Years in Sydney is a world class global event attracting visitors from near and far and this will only add to the festivities.

“This initiative could well set the platform for a more permanent transformation of the road into a world class tourist attraction visited by hundreds of thousands of people each year like the High Line,” Ms Osmond said.

ARTS AND CULTURE IN THE STATE BUDGET SPOTLIGHT

Sydney and New South Wales’ artistic and cultural endeavours have received significant investment in the 2021-22 NSW State Budget.

Treasurer Dominic Perrottet and Minister for the Arts Don Harwin announced a “funding bonanza” of $1.3 billion to create jobs and confirm NSW as the cultural heart of Australia with a raft of high-profile projects in the pipeline including:

$222.2 million for the Art Gallery of NSW, including $152.7 million for the completion and opening of the new Sydney Modern facility
$156.2 million for the new Powerhouse Museum in Parramatta
$127.1 million for the State Library of New South Wales
$82.1 million for the Australian Museum to operate expanded public spaces and improved amenities within the recently re-opened historic complex
$30 million ($60 million over two years) for the Creative Capital program to deliver new cultural infrastructure projects in Greater Sydney and regional New South Wales to boost community participation in the arts, along with cultural tourism
$10 million ($40.0 million over four years) to attract major blockbuster art and museum exhibitions to New South Wales, showcasing the world’s finest treasures in our world-renowned cultural institutions
$6 million ($24 million over four years) to expand the State’s Arts and Cultural Funding Program focused on funding small and medium arts companies, along with funding to enable additional regional touring; and
$4.8 million ($168.2 million over four years) for the transformation of the Ultimo Powerhouse Museum, featuring Australia’s first dedicated design and fashion museum.

Mr Harwin said: “This year’s State Budget has record funding for our State’s artists, creatives and arts organisations.

“We have the nation’s largest and most creative and diverse cultural experiences. NSW is the engine room for Australia’s creative industries. This Budget will deliver bigger and better opportunities for us all to enjoy the arts,” he said.

The NSW Budget also included $119 million to kick-start work on revitalising Macquarie Street East into a cultural and social destination, with the initial focus on creating an iconic public plaza between the CBD and The Domain. The plan is in line with recommendations made in a NSW Government-commissioned precinct review of Macquarie Street East released last year.

Mr Perrottet said: “The revamped precinct will create a vibrant destination for people to enjoy during the day and well into the evening at the southern end of Macquarie Street, allowing the city to showcase some of its historic treasures such as The Mint, Hyde Park Barracks and The Domain.”

REGIONAL NSW TO RECEIVE VITAL SUPPORT FOR RECOVERY AND GROWTH

Thousands of new jobs and significant infrastructure builds in regional NSW will be delivered through the 2021-22 NSW Budget, supporting the recovery and future prosperity of regional communities.

Deputy Premier John Barilaro said more than $2.8 billion was secured in this year’s budget for the Department of Regional NSW to help regional communities continue to grow, move through recovery and build on the benefits of regional living.

Key initiatives relating to the visitor economy include:

$878 million for Snowy Hydro Legacy Fund priorities including $462 million into Special Activation Precincts, including the implementation of Parkes and Wagga Wagga, development of the Narrabri precinct and continued planning for Moree, Williamtown and the Snowy Mountains precincts
$100 million Regional Job Creation Fund to generate at least 5,000 new jobs
$100 million for Round Four of the Stronger Country Communities Fund to build new projects across all 93 regional Local Government Areas
$30 million Regional Tourism Activation Fund to deliver high impact tourism and events infrastructure
$20 million Regional Events Acceleration Fund to bring major events and visitor dollars to regional towns
$10.3 million in 2021-22 (as part of an $80.4 million capital program) for new signature walking experiences across New South Wales, making our natural and cultural heritage assets in our NSW national parks a must-see destination for local, national and international visitors; and
$4 million in 2021-22 (as part of $20 million over three years) to support investment in regional tourism electric vehicle infrastructure as part of the Electric Vehicle Strategy.

Mr Barilaro said: “Since 2017 the NSW Government has committed more than $2 billion to 2,100 regional infrastructure projects, and today I can announce 800 more projects will be added to that tally, putting more cash into local economies, creating new jobs and helping businesses thrive.”

Treasurer Dominic Perrottet said: “With few overseas travel options available, the NSW Government is strengthening tourism in regional NSW. This funding will ensure the industry prospers and continues to play an important role in our economy.”

Minister for Environment Matt Kean said: “From securing the survival of species on the brink of extinction and working towards doubling the population of koalas in NSW to improving access and amenity in our national parks, this funding will enable us to continue delivering our ambitious environmental agenda.”

INVESTMENT NSW PRIMED FOR STATE GROWTH AND BUDGET BOLSTERS STATE’S GLOBAL FOOTPRINT

The 2021-22 NSW Budget will empower a bold vision to make NSW a global destination for ideas, innovation and commercialisation, with more than $416 million allocated to Investment NSW to attract investment, research and development to the state and turn ideas into the jobs of the future.

Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres said the NSW Budget was continuing to deliver jobs growth through the $250 million Jobs Plus Program. The NSW Government is supporting businesses to locate and expand in NSW through a range of investment attraction incentives to bring more job opportunities to the people of NSW.

In addition to this, the 2021-22 Budget is delivering more than $35 million to support the delivery of the Entrepreneurship and Innovation Ecosystems Action Plan.

“Investment NSW is primed to deliver the government’s vision to make NSW the nation’s jobs and investment powerhouse while leveraging our state’s leading talent to address some of our greatest challenges. We have some of the brightest minds and innovators in the world and this is about leveraging our existing thought leaders and our technology and R&D precincts to make sure investors recognise NSW as the ‘innovation state’.”

Meanwhile the NSW Government is also delivering a record investment in trade and industry to support NSW businesses through the economic recovery and to expand the state’s international export opportunities.

Deputy Premier and Minister for Industry and Trade John Barilaro said $261.4 million over four years would double the footprint of NSW’s international network and support businesses here and overseas.

“With the upcoming appointments of an Agent General in London and five NSW Senior Trade and Investment Commissioners in Tokyo, New York, Mumbai, Singapore and China, NSW exporters have never been so well represented,” Mr Barilaro said.

“We kicked off our Going Global export program last year and are investing a further $6.4 million over four years to keep it rolling to help more businesses from across the state engage in new international markets.”

Other highlights from the 2021-22 Trade and Industry Budget to be delivered over the next four years, include:

$128.9 million to expand NSW’s international network
$45 million overall to support NSW exporters through trade programs, including:

$19.1 million to support international students
$6.4 million for the Going Global Export Program; and
$4.8 million to support skilled migration.

MASSIVE BUDGET BOOST FOR WESTERN SYDNEY

From record investments in transport and roads to six new schools and unprecedented funding to start delivery of the Bradfield City Centre in the Western Sydney Aerotropolis, billions of dollars are being injected into Western Sydney in today’s 2021-22 NSW Budget.

Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres said the NSW Budget includes funding that will deliver infrastructure to help realise the vision of Western Sydney as a thriving metropolis supporting thousands of jobs.

“As we lock in our strong recovery, we want to create 200,000 jobs in the Western Parkland City over the next 20 years and by building critical infrastructure now we are positioning Western Sydney for a prosperous future,” Mr Ayres said.

“The Bradfield City Centre will be Australia’s newest city, it will be a hub of advanced manufacturing, aerospace and defence, as well as health and education and create new economic opportunities for residents and businesses of the Western Parkland City.

“These investments are a huge win for the people of Western Sydney – this area is one of the fastest-growing regions in Australia and by making these investments now we are laying the foundations for a truly world-class city.”

Wins for Western Sydney in the NSW Budget include:

More than $1.0 billion to kick start work on the Bradfield City Centre, including:

$975.5 million for Stage 1 Enabling Works to establish, remediate and allow site access to the new Bradfield City Centre which includes $105.5 million in operating expenditure from 2025-26
$138.5 million for Bradfield’s First Building which includes a $24.9 million high-tech facility which will house $22.9 million worth of shared-used equipment for research institutions and industry to collaborate

$37.4 million over five years on a pilot of the New Education Training Model (NETM) which is a new model of tertiary education aimed at helping advanced industries access skilled labour, providing more than 7,000 courses for almost 3,000 students
$156.2 million in 2021-22 towards continuing plans for the Powerhouse Museum in Parramatta as the flagship Museum, as well as funding for the Castle Hill Museum Discovery Centre; and
$4.5 million to upgrade venues at the Eastern Creek Motor Sports Precinct, improving safety, lighting and attendance facilities as part of the Government’s Motor Sports Strategy. These upgrades will help establish a night-time racing economy, increase visitation and participation in motor sports at all levels.

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