Port Stephens: tourism trade bounces back to pre-pandemic levels as Sydneysiders flock to its shores

But as holidaymakers grapple with high interest rates and the rising cost of living - things look a little different this year.

Port Stephens' white sandy beaches and crystal blue waters have long been a favourite weekend jaunt for Novocastrians, but the secret is well and truly out among Sydneysiders.

And, with the borders open to international visitors, the seaside escape is reaping the rewards.

"We are experiencing great numbers post-COVID, accommodation houses have been fully-booked and tourism operators I have spoken to are experiencing great numbers over the summer break domestically and internationally," Destination Port Stephens acting chief executive Mel Turner said.

"There has been a transition in Port Stephens where people have had to reassess their business models, the tourism sector as a whole has very much changed in the way we deliver our products and services and that comes down to what people want for their holiday and their ability to spend.

"We found with accommodation, particularly the campgrounds, the average stay is dropping ... with the cost of living and rate increases people are staying for less time, but their spend is slightly higher than average."

The international visitor market is mostly coming from the Unites States, South Korea, South-East Asia and Europe - bolstered by domestic visitors from Sydney and the state's central west.

With 26 beautiful beaches, stunning sand dunes, coastal walks and bucket-list experiences on offer, the biggest issue travellers face is finding a patch of sand to plonk themselves on for the day.

Making the trip from Marrickville for their seventh season, David Ferreira-Malgit and his family ditched the South Coast for warmer waters at Port Stephens.

"We started Googling, saw Port Stephens and thought we'd give that a go, so we came up on an Easter long weekend and stayed at Fingal Bay cabins," he said.

"It's quiet, calm - we've noticed that there are more people from Sydney coming up and enjoying it.

"This is our holiday destination, we won't go out any further because Gosford, Wyong, Newcastle - all of that has filled up with Sydney people and I don't want to go from Sydney to Sydney."

Mr Ferreira-Malgit and his family usually stay between two or three weeks, a decent stint compared to the five to seven nights guests generally book over at the Mantra Nelson Bay.

This year that number has decreased to about three to five nights, general manager Leanne Jenkins said, with guests booking at shorter notice.

"I think that's reflective of the financial pressure in the community, and we see that with our long weekends where people book two nights rather than three - people are thinking more carefully about how they spend their money," she said.

"We've had little gaps here and there whereas last year our occupancy was sitting around 100 per cent, now it's 80 to 95 per cent but we still have a high turnover of arrivals and departures.

"There's still that lack of security, the interest rates have made a difference and people are a little more anxious especially given it's more expensive at this time of year."

In the first year without COVID restrictions, Ms Jenkins said the freedom from counting heads is welcome, but staff shortages are still an issue.

"We have our own housekeeping but it's not everyday servicing like a traditional hotel which is handy given the current employment situation," she said.

"We could use another 10 cleaners but we're faring better than some others around town who haven't been able to clean rooms because they don't have the staff."

Just two weeks into the summer holidays the town's four-star resorts, hotels, motels and caravan parks are around 97 per cent occupancy with minimal vacancies, Port Stephens Council development services group manager Steve Peart said.

"Restaurants, cafes and retail have all experienced high patronage over the first two weeks," he said.

"The tourism trade so far over the holiday period benefits the region with the tourist dollar driving the economy closer toward pre-COVID levels.

"Considering elements which could have potentially impacted the tourism industry such as cost of living, high fuel prices, increase interest rates and the continuing outbreaks of COVID, the economy has received a boost within Port Stephens."

It's not just accommodation providers that have faced staff shortages, with tourism businesses trying to claw back workers that were laid-off during the pandemic.

Moonshadow Cruises had record numbers on Boxing Day with 17 departures and more than 2000 passengers excited to see dolphins off the coast of Nelson Bay.

Maintaining the level of service customers have grown to expect with staff shortages hasn't been easy, business development manager Janene Rees said.

"With staffing in tourism and hospitality, we've lost so many through the pandemic and we really had to work hard at maintaining our staffing levels so we could get through this season," she said.

"It's really interesting because given the last three years with the pandemic it's always hard to gauge what's going to happen, everyone was quite cautious coming into the season but it's been a wonderful surprise."

She said the business is back to pre-pandemic numbers, with domestic tourism the strongest market this summer season.

"I get a bit emotional about it sometimes because I've seen so many other businesses go under that didn't make it through the pandemic, but for the ones that stuck it out, seeing them coming back into some sort of normality is wonderful," she said.

"It's been a tough few years but the confidence is absolutely back.

"This year it has been all about spending quality time with family in beautiful holiday destinations and Port Stephens is the perfect destination for that."

And, it seems Sydney's Mary Aras and Melina Xavier had the same idea, heading to the bay each year with 20 of their friends and family.

"The kids love it so we keep coming back year on year," Ms Aras said.

"I don't think it's changed much and I think that's what the beauty of it is.

"I love it, the water is beautiful, the vibe, the people, it's really friendly and nice."

With some hesitation still lingering around overseas travel, domestic visitors have flocked to Port Stephens for a coastal getaway close to home.

Business Port Stephens chief executive Clive James said it's great to see people visiting the peninsula after a sad couple of years.

"I know the restaurants are going strong and it's always a good idea to book in to get a spot," he said.

"I made extra effort to eat out frequently when allowed to during COVID simply to help them keep their doors open, but now it's the tourists' turn.

"The Nelson Bay Road being developed can only help whilst long overdue, I hope they now make fast progress to completion of two lanes all the way."

With plenty of activities to choose from, families keep themselves busy quad biking, riding camels on the dunes, snorkelling, golfing, tobogganing and more.

Melissa Pasquale is from George's Hall and used to come to Port Stephens when she was a kid, now she brings her own every year to enjoy the beach.

"There's lots of nice places to eat, the people are friendly and it's family-friendly now that we've got kids," she said.

"It's definitely gotten busier, it's a lot busier so in that respect it has changed.

"But it's nice to take my kids to places I used to go as a kid, I take them to the Toboggan Park and do the things we all did."

The week leading into Christmas is traditionally the 'calm before the storm' and with another three weeks left in the season, businesses are just getting started.

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