The magnificent Coast Track walk through Royal National Park will be enhanced and extended to give hikers a five-day experience with overnight stays.
The 59km Great Southern Walk, stretching from the Illawarra to Kamay Botany Bay National Park, Kurnell, will be the first of a series of "iconic walks" to be developed in NSW to boost tourism and help local business.
Four locations - Madden Plains, Garie, Wattamolla and Bonnie Vale - have been identified for overnight accommodation on the Great Southern Walk, with options to include cabins and "glamping".
"Bring it on," was the reaction from Marnie and Bruce Sigal, who operate Bundeena Kayaks next to the Bonnie Vale campground.
The couple was also excited National Parks and Wildlife Service (NPWS) has told the Leader the campground is expected to reopen to campers in October, weather permitting, after being closed since September 2018 for asbestos remediation and erosion control works.
Ms Sigal said it was "a great idea" to give hikers the chance to stay overnight at select locations to extend the enjoyable experience.
"We would naturally welcome them and give them the opportunity to explore Cabbage Tree Basin and other parts of the Hacking River," she said.
"They might also like to have a meal at one of the local cafes or the club. It would be great for the township."
Ms Sigal said, after the impact of COVID-19, anything to encourage more tourists to the area was very welcome.
The couple started their business 20 years ago "with a rusty old Commodore and three kayaks" and were recently awarded a new 10-year lease by NPWS following a competitive tender process.
Treasurer Dominic Perrottet said the state budget, to be brought down on Tuesday, would include nearly $31 million for the project.
The funding will comprise about $17.5 million for planning, design and construction, and $13.4 million for a 44km mountain bike track diversion on the Illawarra escarpment.
Treasurer Dominic Perrottet said the Great Southern Walk would draw hikers from around Australia and overseas when borders reopen.
"The walk, expected to be complete in 2024, will boost the local tourism economy and create local jobs both during construction and as the walk welcomes national and international visitors," he said.
A NPWS spokeswoman said new accommodation to be built at Wattamolla and Garie would "offer a range of experiences".
"NPWS is exploring options that may include cabins and glamping to appeal to a range of visitors and to showcase the unique beauty of the walk," she said.
"No concepts nor designs have been developed at this early stage.
"All accommodation plans will be part of a future community consultation process and feedback will be invited before finalising options."
The spokeswoman said visitors would also be able to access other existing accommodation options in Royal National Park.
"The Bonnie Vale campground will form part of the accommodation options for the walk," she said.
"Over the past 18 months, NPWS has been planning and seeking the necessary Aboriginal heritage and environmental approvals for the remediation of the Bonnie Vale campground."
The spokeswoman said camping was likely to recommence in October this year, weather permitting.
"Power totems and water connections will be installed at some sites within the Bonnie Vale campground during the remediation works," she said.
"NPWS is also proposing to construct a small number of camping platforms in some areas to minimise disturbance and erosion of the ground surface.
"The majority of the Bonnie Vale site will continue to be used for visitors to camp in tents or stay overnight in small caravans and campervans."
Sign up for our newsletter to stay up to date.