The program is part of a $1 billion in funding for regional infrastructure to be announced in this week’s budget. 

Deputy Premier Andrew Stoner said the Regional Tourism Infrastructure Fund would allow regional destinations to develop their full potential by investing in critical visitor infrastructure, such as airport upgrades and rail trail infrastructure.  

“This significant investment will build the infrastructure required to drive tourists to our regions, create jobs and increase the economic competitiveness of the state,” Mr Stoner said.

Mudgee Regional Tourism Inc (MRTI) chairman Russell Holden said rail trails were the type of project which could benefit the Mid-Western Region by promoting cycling tourism as well as improving safety for local cyclists. 

Rail trails are paths for cyclists, walkers and horseriders which follow unused rail corridors. 

Developing a rail trail for walking and cycling between Kandos and Gulgong was among submissions put forward to council’s recreation strategy released in 2013. 

Mr Holden said a proposal for a rail trail using the corridor alongside the existing railway line had previously been considered by Mid-Western Regional Council. 

“From the tourism industry perspective, cycling is a growing  market but we need it to be safe,” he said. 

Rail Trails 4 NSW, a group which promotes development of rail trails, estimates that a single rail trail bike rider would inject $250 a day into the local economy. 

Mr Holden said other possible projects that could be considered for funding, depending on the criteria for the program, could include a wine history centre where visitors could learn the story of the wine industry from pioneering times to recent developments. 

“That sort of thing would be of great value to local tourism,” he said, noting that Mudgee was one of the first places to have chardonnay vines in NSW. 

“The more experiences you can offer visitors, the longer they will stay and the more money they will spent here.” 

Mr Holden also suggested relocation of the tourism office to an site more accessible for caravanners and mobile homes as a potential project for funding.

The development of the poppet head on Red Hill, Gulgong, as an attraction for visitors could also benefit the region greatly, he said. 

However, Mr Holden noted that while $110 million seemed to be a substantial amount, it would not go far when spread across all NSW councils. 

Member for Upper Hunter George Souris said projects could include infrastructure which takes advantage of wine tourism, equine tourism and the natural environment. 

He suggested that the potential of the disused Sandy Hollow to Merriwa rail mine should also be considered. 

Mr Souris said there was also untapped potential in viewing coal mining, building on the popularity of various coal mine open days.