Trade Minister Steve Ciobo is confident regional areas will be able to cope with a growing influx of Chinese tourists.
The building of extra hotels was creating more jobs in both construction and hospitality, he said.
"We're seeing more investment in hotels in Australia to help meet the surge and demand that is coming from countries like China," Mr Ciobo told reporters in Beijing, adding that 1.2 million Chinese tourists visit Australia each year with numbers set to increase to two million by 2019-20.
