As the mining boom peters out, tourism may sit alongside housing as Australia's next big hope for the economy, an ANZ report suggests.
The bank's economists Jo Masters and Felicity Emmett say the tourism industry is benefiting from a robust domestic market and a rise in foreign visitors to our shores.
The weaker Australian dollar is helping entice foreign tourists, who are are staying longer and spending more.
"The fillip to the economy will most likely have to come from incoming tourist arrivals," the economists wrote in a research note published on Thursday.
"These should continue to strengthen, assisted by further falls in the Australian dollar and stronger economic growth in key offshore markets."
Australia enjoyed record visitor numbers from 15 key markets in 2014, with Chinese tourists leading the way.
Australia had 6.3 million international visitors in the year to September, up eight per cent.
The number of nights they stayed increased by three per cent and their spending per trip rose nine per cent to a record $30.7 billion.
The economists said China had overtaken the United Kingdom, New Zealand and Japan as the main source of inbound tourists, accounting for 18 per cent of total international spending.
"While the Australian dollar has fallen sharply against the US dollar, it has weakened more sharply against the Chinese yuan, Singapore dollar and New Zealand dollar," they said.
Meanwhile, while the weaker dollar hasn't stopped Australians travelling overseas, many are now opting for shorter foreign holidays.
