The Stay NSW voucher is the latest discount program from the NSW government, following the Dine and Discover voucher program and the Parents NSW voucher.

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Announcing the program, Premier Dominic Perrotet said he hoped people around NSW would use the vouchers to support the state's economy.

"The voucher programs will have a multiplier effect on the economy - and this will encourage families to spend a night or a weekend exploring Sydney or a regional town, while also spending on sightseeing and other activities," the Premier said.

Those hoping to redeem their voucher can do so through the Service NSW app and accommodation businesses can start participating in the scheme through Service NSW.

Accommodation providers in the Illawarra and the South Coast said that the program would help encourage continued visitation after a bumper summer to make up for business lost during lockdowns.

Leanne Williams, the fourth generation co-owner of Big 4 Easts Beach Holiday Park in Kiama, said she hoped the vouchers would be an incentive for travellers outside of the peak holiday periods.

"People have got a bit cautious again so hopefully that will encourage them to get back out amongst it again."

Executive director of Business Illawarra, Adam Zarth said that while some providers have been booked out over summer, others are still just making ends meet.

"This is about making sure that it's not just a sugar hit, following summer, because you're not going to be able to recover in the space of a month. This needs to be a year long period where we get out."

The Stay NSW vouchers can be bundled with the Parents NSW vouchers, which give households with a child between 4.5 and 18 years five $50 vouchers that can be spent on accommodation bookings as well as entertainment and recreation.

Lyndel Grey, CEO of the peak body for tourist parks, the Caravan Camping Industry Association, said the vouchers are welcome relief for the sector.

"The $250 Parents NSW vouchers and $50 Stay NSW vouchers will provide much needed assistance to holiday parks across NSW who have ridden many highs and lows over the last two years as a result of COVID-19."

Co-owner of the Thirroul Beach Motel, Jeni Sae-Yang said that during the pandemic the business was unable to access government support, and pivoted to providing short term accommodation for workers, instead of holiday makers.

The art deco motel was booked out over summer, and Mrs Sae-Yang said she hoped the vouchers would enable more people to go on holidays.

"For people who were thinking about or saving up for a holiday, this might just make it a bit easier for them."

While the NSW Treasurer credits the Dine and Discover vouchers as stimulating millions of dollars in spending in the NSW economy, hundreds of millions of dollars in vouchers remain unspent. Mr Zarth said that he hoped that as borders reopened, the vouchers would encourage people to travel locally and not remain unspent.

"Local businesses have had a very disappointing summer, and the Omicron variant has really damaged confidence. So we really need people to get back out there supporting business."

Wollongong Council-owned Tourist Parks are finalising their registration under the scheme and a council spokesperson said it was hoped that locals and visitors would make the most of the program.

"Council plans to promote the Stay NSW voucher program to help support interest for our popular tourist parks from both local community members and visitors to the Wollongong region."

For Mrs Williams, whose family has owned the land at Easts Beach for over 100 years, it was hard to imagine that COVID could end the family's connection to the park. While the business has ultimately survived, she said that was on the back of more Australians enjoying their own backyard.

"We've had people that have probably never haven't been in holiday parks before. Because they can't go overseas they're trying different things and learning what we're about."

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