ABS data released this week shows 7.3 million short-term visitors arrived in Australia in 2016, excluding December. The figure almost surpassing the 2015's full-year tally with one month to spare.
December typically attracts more than 800,000 visitors.
Tourism Research Australia is predicting growth of 8 per cent for 2016-17 compared to 2015-16, and expects a new record for visitors to be set.
Dr Patrick L'Espoir Decosta from the ANU said years of work positioning the country as a travel destination for overseas visitors is paying off, with a rise in tourism from China and India.
“People from these two countries are ready to travel, and they want to see first world countries,” he said.
Compared to a year ago, the number of monthly trips from China has grown by almost 10,000 and monthly trips from India are up almost 20 per cent.
Professor Lindsay Turner from Victoria University said a lower Australian dollar has also attracted more visitors and arrival figures have been boosted by foreign students.
"With the education market booming from overseas Australia’s arrivals statistics also include students, and that counts significantly.”
Dr David Beirman from UTS said low cost Asian carriers were helping to increase visitor numbers. He believes numbers are lifted further by Australia's reputation as a safe place and development of strong social media advertising.
"Australia’s widely perceived as one of the safest places in the world,” he said.
The 'See Australia' Facebook account has almost 7.7 million followers, and Dr Beirman believes the national marketing strategy - including cooperation from state tourism bodies - has been successful.
"They’ve been very smart about how they used their money,” he said.
"We’re one of the faster growing inbound destinations in the world, with three times the growth average for world tourism.”
Trade and Tourism Minister Steven Ciobo is currently travelling, but in December he described the industry as having “super growth status”.
The government has been developing better aviation ties with China and has been promoting 2017 as the "Australia-China year of tourism”.
It has given $629 million over four years to Tourism Australia, much of which will be spent on offshore marketing, and is .
Labor tourism spokesman Anthony Albanese said there was a “real opportunity at hand” to encourage further growth.
"Some of these opportunities include ensuring Australia has a competitive visa process, a fair taxation system for backpackers, growing Indigenous tourism, and investing in marketing, research, skills and training," he said.
