The Accommodation Association of Australia's chief executive officer, Richard Munro said the fund, which was launched by the federal government recently, is a tangible incentive for investment in this business sector.
"One of the central goals in the Tourism 2020 strategy is lifting the quality of tourism accommodation rooms in regional Australia and the Tourism Industry Regional Development Fund will give this process a big push," Munro said.
"Although there are a number of hotels, motels and apartments in regional areas which already have refurbished or new facilities, grants from the fund are an opportunity for other businesses to undertake capital expenditure to improve their offering.
"The Accommodation Association is actively encouraging our members to make the most of this important initiative."
Munro said targeting businesses in regional areas where visitor numbers can often fluctuate depending on the time of year is particularly positive.
"All tourism accommodation businesses in regional areas have an equal opportunity to apply for funding," Munro said.
"The Government has actively provided assistance to the industry through similar programs, such as TQUAL (quality tourism) grants, and we expect the Tourism Industry Regional Development Fund will be allocated on a similar basis.
"It will assist with making Australia a more competitive destination for both international and domestic visitors."