The $50 vouchers will be available for people over the age of 18 from February 21, but will be introduced gradually in NSW's local government areas.

All of the vouchers will be available to statewide by March 3, and can be used until October 9 this year.

Member for Wollondilly Nathaniel Smith said it was an opportunity to explore the state whilst also supporting businesses.

"This is a win-win for the local community - the vouchers will give hard hit businesses much needed stimulus, while also encouraging residents to explore our great state," he said.

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"Whether it's a quiet country inn, the family-run caravan park or a hotel in the Sydney CBD, every budget needs a boost this year."

Distribution dates for residents in the Highlands or Goulburn are yet to be confirmed.

The vouchers can be used at over 1200 businesses statewide, and can be accessed through the Service NSW app and website, or by calling13 77 88.

"People can pool the $50 Stay NSW Vouchers with relatives or mates, with no redemption limit," Mr Smith said.

Participating businesses will be able to redeem vouchers seven days a week, including on public holidays.

Businesses can also register to be involved in the $250 million initiative.

Eligible businesses can be found on the Service NSW site and can be searched by name and suburb.

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