Mr Barnett said when CinefestOZ began in 2008, it had an attendance of 1,898 which grew to 23,656 last year.
"CinefestOZ is a great example of a home-grown Western Australian event that has gone from strength to strength with Liberal National Government support," he said.
"The annual five-day film festival, which started in Busselton with 17 film screenings, has spread across the South-West region and this year is offering 73 films plus 22 free films for the community and five industry functions in five locations."
The Premier said CinefestOZ was important for the local economy, attracting more than $2.73 million into the region last year.
"The $100,000 Australian Film Prize, the richest in the nation, was introduced in 2014 and has attracted national and international attention for the festival and the region, and has helped increase visitation," he said.
"The State Government has a strategy to see the value of the tourism industry grow to $12 billion by 2020 and events such as CinefestOZ will play an important role in reaching that goal."
Regional Development Minister Terry Redman said in addition to the tourism and economic benefits CinefestOZ had produced, the festival also helped boost the local film industry.
"In the past three years, five films have been made in the region, with another 10 in pre-production or development," Mr Redman said.
"CinefestOZ has played an important role in showcasing Western Australia as a great film location to influential film-makers. I am pleased to see Royalties for Regions invest in the Regional Events Program to bring significant social and economic benefits throughout regional WA."