The NSW Government has taken an important step in supporting Newcastle Airport to become a global gateway when its upgraded international terminal opens in 2025.

The government’s tourism and events agency Destination NSW has signed a Memorandum of Understanding (MOU) with Newcastle Airport to help the airport secure new international and domestic routes.

This agreement makes available financial support to Newcastle Airport from the Aviation Attraction Fund for a two-year period from when new routes commence. The funding package includes route incentives for airlines and strategic marketing support.

The $250 million upgrade to Newcastle Airport, jointly owned by the City of Newcastle and Port Stephens Council, will open a new gateway for domestic and international visitors to access the Hunter region and NSW Mid-North Coast.

The upgrade is projected to increase annual visitor numbers by 850,000 each year and inject $6.2 billion into the visitor economy, generate $6.5 billion in gross regional product through freight and generate 4400 jobs over 20 years.

The Aviation Attraction Fund is administered by the NSW Government’s tourism and events agency Destination NSW. It aims to build aviation capacity across NSW by supporting airlines to return to the state’s airports.

Newcastle Airport will be supported under Stream Two of the program - Regional NSW Domestic and International Route Support.

The Aviation Attraction Fund was open for applications from 1 February 2022 to 30 June 2023.

Minister for Jobs and Tourism John Graham said: “This agreement puts Newcastle Airport on the runway for international success.

“The international terminal upgrade at Newcastle Airport will be a massive boost for tourism in the Hunter and Mid-North Coast. It will also cement NSW as the number one gateway to Australia.

“The government is backing the people of Newcastle to maximise the opportunities of the international terminal upgrade.

“This MOU provides financial certainty to Newcastle Airport so it can attract new international and domestic airline services, helping the recovery of aviation jobs and providing a significant boost to the local visitor economy.”

Minister for the Hunter Yasmin Catley said: “We’re one step closer to showcasing the Hunter like never before, sending a strong message to overseas visitors - why not explore the Hunter when you’re in Australia?

“We have endless opportunities in the Hunter - from our world-renowned vineyards to some of Australia’s best beaches – and we’re ready and eager to welcome the rest of world. “Newcastle is quickly growing and establishing itself as one of the state’s most desirable destinations to live and visit.

“The Hunter region is a great play to live, work and play and we want everyone to experience it.”

Newcastle Airport CEO Dr Peter Cock said: “It’s an incredibly exciting time for our region with Newcastle Airport on the cusp of becoming a true global gateway by mid-2025 when our international terminal expansion is expected to be complete.

“I’d like to thank Minister Graham for his leadership and Destination NSW for their continued support. These partnerships, together with the support of the community and local businesses are critical in growing the airline market in the Greater Hunter and strengthening its position as a gateway to Australia.

“We understand where people want to fly and we are working hard to confirm new routes with several key airline partners. Initiatives like the Aviation Attraction Fund are critical to supporting our live negotiations to attract new international and domestic airline services.”

Destination NSW CEO Steve Cox said: “Through this MOU, Destination NSW will collaborate with Newcastle Airport with the objective of utilising aviation to bring holistic economic benefits to NSW.

“Destination NSW is committed to working with the Hunter community to prepare for and maximise the once-in-a-generation opportunity that a new international terminal and infrastructure upgrades bring.

"Destination NSW hosted inbound strategy workshops in Newcastle and the Hunter Valley this week to ensure visitor economy businesses are ready to sell experiences via travel distribution channels to international visitors.

“Destination NSW is also proud to have secured major conferences for the region including the Australian Society of Travel Writers Conference taking place in the Hunter Valley in October 2024 and the 2025 Pacific Airports Roundtable Conference.”

For more information on Destination NSW’s Inbound Strategy Workshops delivered through the NSW First Program click here.