Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres said the two-year agreement worth more than $1 million builds on previous success.
"We estimate that the three previous MoUs with Air New Zealand between 2014 and 2019 delivered an estimated overnight visitor expenditure of $56.8 million to the NSW economy," Mr Ayres said.
"In the year ending September 2019, New Zealand ranked as NSW's third most popular international market in terms of visitors, which is why it's crucial for us to continue to build on this momentum going forward.
"Tourism is big business for our state and in light of the recent bushfires and ongoing drought, it's now more important than ever before to show New Zealand why they should travel across the Tasman to explore the beauty of NSW."
Air New Zealand General Manager New Zealand Retail and Loyalty Marketing Annabelle Fowler said the agreement will strengthen the airline's NSW connection.
"NSW has always been a firm favourite with Kiwis travellers and we fly more seats to Sydney from New Zealand than any other destination in our international network.
"Reminding New Zealanders of all this great state offers will support NSW tourism to stay strong, and we fully expect our partnership to drive more travel across the region," Ms Fowler said.
The 2020-2021 MoU between Destination NSW and Air New Zealand will include joint consumer advertising campaigns, trade partner campaign promoting packages to Sydney and regional NSW, sharing of digital assets including promotion on websites, database marketing and trade and media familiarisations.
