Will Creedon has called on the Morrison government to put the Hunter and NSW at the forefront of a "second and third stage" of support for the tourism sector.
The industry veteran said it was "a joke" NSW was all but left out of the government's proposed half-price airfare scheme announced as part of a $1.2 billion support package this week.
More than 800,000 airfares will be subsidised to 13 destinations across Australia, but Merimbula was the only NSW destination included.
Mr Creedon, a former Tourism Hunter chair, said it was "slap in the face" to NSW for so many Queensland destinations to be on the list in light of that state's border policy, which shut out travellers for much of last year.
"The premier who created the most uncertainty and lack of confidence has actually been rewarded," he said.
"It's very, very disappointing that's happened. In business it's all about surety and confidence. We are the most certain state in the country and have been crucified."
He said the "leisure-based" segment of the Hunter's tourism industry had done well from increased domestic travel, but businesses reliant on corporate and event trade "were in trouble".
"We think everything is flying, but it isn't," he said.
"What's crumbling around the supply chain - travel agents, bus companies, guides - those microbusinesses ... they are in real trouble. And companies aren't taking their people away for conferences and events.
"When JobKeeper ends ... people connected to those businesses are going to be let go. That's why I'm really interested what happens in stage two and stage three.
"Is that where the Treasurer and Prime Minister are going to reward NSW?"
Newcastle Tourism Industry Group chair Kent Warren said it was "encouraging" the government had continued support for "visitor economies around Australia" and was optimistic the region would not miss out.
"No subsidy at all would be devastating," he said. "The 13 destinations aren't the end, I don't think. It will be a first round and we're working in collaboration with council and Newcastle Airport to ensure we're not forgotten."
Mr Warren said Newcastle had not been as lucky as other parts of the Hunter.
"Port Stephens and the Hunter Valley were almost back to normal levels through August, September and October, whereas Newcastle was sort of running at half of that demand," he said.
"Positively, with the efforts of council and digital and long-term marketing campaigns, we saw that the occupancy coming into Newcastle through December-January got us almost back to where we were in 2019. But we've got to be careful that wasn't just a sugar hit."
Mr Warren said the pandemic and contraction of tourism had potentially propelled the industry group's goal to change Australians' perceptions of Newcastle.
"The early signs are good that we're starting to change the thoughts of Sydneysiders, and also people interstate, that Newcastle is not just a coal-mining town or a steel town or a blue-collar town.
"We're starting to change that rhetoric, we just need to continue to build on that."
The state opposition's tourism spokesperson, Maitland MP Jenny Aitchison, called for the Berejiklian government to "fill the gaping holes left by the Morrison government's package".
Mr Creedon said there were a range of ways the state could step up, including mandating its departments and encouraging businesses to, travel to and hold more events in regional areas.
