The Andrews Labor Government has celebrated the opening of a new walking track and tourism hotspot at Lake Fyans, which will encourage even more people to visit the popular holiday spot at the foot of the Grampians.

Minister for Regional Development Jaala Pulford joined Northern Grampians Shire, Grampians Wimmera Mallee Water and Lake Fyans Recreational Area Committee at the official opening today.

The Labor Government provided $187,500 towards the project in a real win for local tourism and jobs for our iconic Grampians.

The project has developed a 9.6-kilometre walking track around the perimeter of Lake Fyans, with fencing, shade shelters, upgraded and new toilets, signage, nature trails and bird trails.

Construction of the new path supported nine jobs and a further three ongoing jobs will be created once the project is complete.

The Lake Fyans recreational lake contributes more than $7.7 million annually to the regional economy, and with the essential upgrades are expected to create a 15 per cent boost in visitor numbers.

The new track will help preserve cultural heritage locations and native vegetation in the southeast part of the lake shore by limiting motor vehicle and motorbike access to the water in highly sensitive areas.

It will better connect the recreational, cultural and natural heritage of the lake surrounding Lake Fyans Holiday Park so that visitors can enjoy all the lake has to offer.

Splinter tracks off the main trail encourage walkers to explore the diverse plant life, observe the rich fauna activity and to preserve the cultural heritage of the Djab Wurrung Nation.

The project complements the Grampians Peaks Trail project by promoting the greater region as a place to enjoy the nature and beauty of the Grampians by foot and bicycle.