Domestic overnight trips in 2011 climbed 4% to almost 70 million with spend rising 1.6% to $43.5 billion, latest figures have shown.
But the number of holiday overnight stays fell 1% with expenditure down 4%, according to the National Visitor Survey.
Business travel and the visiting friends and relatives market helped offset the decline.
Tourism minister Martin Ferguson said: “These figures underline the need for tourism businesses to continue to freshen their range of products and experiences, giving Australians more reasons to holiday at home.”
Domestic spend in the final three months of the year increased 2.3% to nearly $11 billion.
Tourism Australia managing director Andrew McEvoy described the performance as “solid”.
“The numbers…now represent three consecutive quarters of growth. Overnight trips, visitor nights and spend are all up,” he said.
In its analysis of the report, the Tourism and Transport Forum (TTF) said total visitor nights increased 1.4% while spending per night was up only 0.2%.
Chief executive John Lee said it was good result considering the desire for international travel.
“With the Australian dollar tipped to remain strong for some time significant investment in new accommodation and attractions is required to give Australia’s tourism industry a competitive boost,” he said.
