The Dubbo City Regional Airport Master Plan 2019-40 includes a proposal to explore a commercial precinct close to the Mitchell Highway as a medium-term goal.

However, mayor Ben Shields has pushed for expressions of interest for an accommodation provider at the airport by the end of June.

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"We have the land ready to go for it and with Dubbo's tourism figures at the moment now is the time," Cr Shields said.

"We should go to the market and ask them what exactly they think would work best at our airport when it comes to an airport hotel. I personally see these airport hotel as being a big proper brand with a proper bar and restaurant.

"I also personally see that there could be other businesses surrounding it, potentially a service station, potentially other entities in that commercial area zone of the airport, which would add value to our airport business."

Dubbo Regional Council estimates the airport lost an estimated $5 million in revenue due to the impacts of the COVID-19 pandemic and predicted growth in regular transport passengers was set back by numerous years.

Councillor Greg Mohr said the accommodation would provide another revenue stream to council.

"Another reason why this is a good idea is simply that it's money coming in to the airport so we don't have to charge exorbitant landing fees, and security fees in the long run. And that is a major significant factor when people travel," he said.

Council will look for grant opportunities economic stimulus grants that might be suitable to support infrastructure investment within the commercial precinct to help make the project more feasible.

"I think the best way on this is expressions of interest because there are so many different things and ideas out there that potential hotel operators or developers could come to us, and suggests that we may not even have dreamt of yet," the mayor said.

"So, let's put it to the market, to the entire country, what do people who are interested in doing this sort of development [think]. Get them to give us a proposal and then we can work out whether it fits our business plan, and whether it fits the best thing for Dubbo."

Expressions of interest will be sought later in the year.