NSW Premier Barry O'Farrell has announced the "Destination Sydney" consortium would deliver a new convention complex featuring a new 900-room hotel and 40,000 square metres of convention space.
Tourism Accommodation Australia NSW) director Carol Giuseppi said the plan was exactly what Sydney needed.
"We welcome the visionary nature of the project which moves beyond simply a convention and exhibition centre to a design which encompasses the total visitor experience," she said.
"The new facilities will ensure that Sydney attracts more of the lucrative business events market.
"Up to 10% of activity in Sydney hotels is generated from business events, therefore, a modern, state of the art competitive facility is vital.
"In particular we welcome the planning for additional 3.5 star hotel rooms on the site."
Ms Giuseppi said she was also pleased with plans for the redevelopment of the Haymarket area.
"For too long this has been the neglected part of the city," she said.
"This proposal includes a much-needed creative quarter in that area with a mix of boutiques, special-interest retail and cafes and restaurants.
"This makes it even more important that we improve connectivity between this area and the rest of the CBD via light rail. Together with the revitalisation of Chinatown this area will become magnet for visitors."
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