The NSW government has announced it will prepare a "detailed business case" for a third Sydney cruise terminal at Botany Bay, prompting dismay from Newcastle MP Tim Crakanthorp.
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Plans for a cruise terminal in Newcastle were declared dead in the water in April after a debate over funding.
Advocates had hoped a terminal would allow cruise ships to use the city as a "home port" and take the pressure off Sydney's Circular Quay and White Bay.
Mr Crakanthorp described the government's push for a third Sydney terminal, over the objections of Botany's Bayside council, as "another blow" to Newcastle people.
Port of Newcastle, which secured a $12.7 million grant before deciding the money was not enough to build a terminal, has said the cruise industry has been lukewarm about the need for home porting in Newcastle.
Newcastle Tourism Industry Group chairman Kent Warren said in April that establishing Newcastle as a back-up home port would benefit businesses.
The first of 15 ships to stop in Newcastle this summer arrives on October 16.
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