The International Visitor Survey reveals over the past year Australia has welcomed more than 1.3 million Chinese visitors – second only, by a narrow margin, to New Zealand tourists.
This is being hailed as the year of China-Australia tourism and if latest figures are an indication, it has met the mark.
Australian Chamber of Commerce and Industry's James Pearson said the influx of spending would have a strong positive effect across industries.
"Given the rise of the Chinese middle class and given the increasing numbers of Chinese people who are coming overseas, we want to see as many as possible of them come to Australia," he told SBS News.
"They spend money here and that's a shot in the arm to local businesses. And one of the other exciting things is, increasingly, we're seeing Chinese visitors veer away from tour groups and break out on their own."
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More than eight million international visitors spent a record $41.2 billion over the 268 million nights they stayed in the 12 months to September. A quarter of that spending was by Chinese tourists.
But, of those federal government figures, there is no breakdown of how much of money is actually going back overseas to foreign companies.
'Dependence on foreign capital'
Mr Pearson says the tourism industry provides opportunities for everyone and it is not unusual for foreign-owned operators to make money from organised tours and accommodation.
"Of course, some of the money will go back to the country they come from, just as some of the money when Australian companies invest abroad will come back here," he said.
"But as an island nation that from the very beginnings of its modern economy has depended so much on foreign capital and on talented people coming from overseas, this is something we should not be frightened of."
Sydney tour guide Ling Lee says Chinese travellers are increasingly shunning organised trips and her clients are usually older Chinese who are more traditional tourists.
"To Chinese people, we do not enjoy the sunshine. Some people use umbrellas and clothes to cover and protect from the sunshine. So maybe the beach is the second option, and the Opera House is the first option," she said.
Boosting spending
A key priority of tourism bodies is not just to boost visitor numbers, but the average person's spending too.
Guided tours are how one-way operators are ensuring when visitors see the sights they are also spending money.
Rob Peters, who a driver at Big Bus open roof tours in Sydney, says the service is popular because it allows visitors to cover a wide territory in a short amount of time.
"If you've got limited time - a lot of people strangely enough only visit Sydney for a few days - it's better that you do it on a service like the hop on and off Big Bus," he said.
Over the past year, Chinese tourist spending has risen by 13 per cent.
According to Tourism Australia, the increase can be partly attributed to the increase of direct flights between China and Australia.
But with the spotlight on concerns over possible Chinese political interference in Australian politics, there are fears a cooling in bilateral relations could drive Chinese visitors away.
But, according to China-based tour operators, tourists so far appeared to be undeterred.
But as most overseas holidays are booked well in advance, they say any impact from political tensions could take months to appear.
