Wellington, Nov 2 NZPA - Tourism is getting an extra $20 million, bringing annual funding to $89m, Prime Minister John Key said today.

Mr Key, who holds the tourism portfolio, said the extra money would allow Tourism New Zealand (TNZ) to raise visibility in key markets such as Australia, the United States and China.

Of the $20m, which goes in this financial year, $5m will be earmarked for TNZ to carry out joint venture work with the private sector and regional tourism organisations.

"By combining forces with private sector companies such as airlines and hotels, we will increase our ability to turn awareness into arrivals," Mr Key said.

"Tourism is a substantial and dynamic industry sitting at the forefront of our economy.

"Its performance ultimately affects the wellbeing of all New Zealanders."

TNZ said the extra funding was expected to bring in around 45,000 additional visitors each year.

The Tourism Industry Association described it as "a fantastic initiative" which showed the Government understood the industry.