According to Flight Centre, Australia's largest travel agency, the number of travellers opting to stay on Australian turf increased by around 15% in 2012, compared to last year.
The company analysed its domestic booking trends for the period from July to December and found travel to Tropical North Queensland and the Queensland Islands had grown more than 20% on the same period in 2011.
Domestic holidays in the Top End had also popular in 2012, up 25%, while beach holidays to the Gold Coast and Sunshine Coast and city breaks in Sydney and Melbourne all remained firm favourites.
Flight Centre's executive general marketing manager, Colin Bowman, said the variety of holiday experiences available in Australia catered to the preferences of most travellers.
"Wine lovers have plenty of cellar doors and vineyards to explore across Australia, from the Hunter Valley to Yarra Valley, Barossa Valley and Margaret River, which are home to some of the world's finest wines," Colin said.
"Or, for those who love adventure, try mapping out the walking trails of Queensland's Daintree Rainforest or Tasmania's Freycinet National Parks," he said.
Mr Bowman said Aussie traditions were shaping the way people travel this year, whether it's a eating a meat pie at the footy grand final, surfing waves at the beach or watching a band play at a festival.
Here is a list of top 5 things we love about Australia compiled by the team at Flight Centre.
Top 5 Reasons Why We Love Australia:
1. Wide open spaces
We are the lucky country. Not only do we have a wealth of space around us, but our scenic attractions are simply breathtaking.
Aussie beach culture is vibrant and our golden sandy coastlines stretch for kilometres, offering plenty of options to swim, surf, dive and fish in the surrounding ocean waters.
Our rugged landscape and outback plains serve up a feast for the eyes, while rock caves, rainforests and world-heritage sites are popular among adventurers and tourists.
2. Mad about sports
Sport, without a doubt, plays a fundamental role in our Aussie culture. Whether you are a die-hard sports fanatic or fantastic at sport, the competitive spirit of our Aussie sports teams is enough to get your heart pumping.
As a nation, we do pretty well against our competitors in cricket, tennis, rugby league, rugby union, swimming and golf. We even created our very own Australian Football League and since we are lucky enough to have beaches on our doorstep, we have a vibrant surf culture.
3. Picture perfect weather
Who doesn't enjoy the feeling from warm rays of sunshine or a fresh cool breeze?
Australia has a reputation for having amazing weather, year round. Summer is delightful, often balmy and humid, but the perfect scene for hitting the beach or hosting pool parties.
Winter days don't get too cold and we are lucky to have clear blue skies for most part, unlike our cousins in the northern hemisphere that are used to dense fog or grey mist.
The occasional summer storm provides plenty of rainfall, but after the clouds have cleared, there is light at the end of the rainbow.
4. Laid-back lifestyle and sense of humour
Aussies have a cracking sense of humour, often characterised as dry, cheeky and sarcastic. Performing artist Barry Humphries exemplifies this, through his satirical character creations of housewife Dame Edna Everage and wine loving Les Patterson, and Paul Hogan brought the outback to the big screen in the movie Crocodile Dundee.
Television series such as Hey Hey it's Saturday, Mother & Son, Kath & Kim, Fast Forward, Full Frontal and Frontline also drew on this cynical satire.
5. Wildlife on our doorstep
The kangaroo is the national symbol of Australia and rightly so, is featured on our coins, coats of arms and national airline. The fact that you can spot these guys in some people's backyards is quite incredible, not to mention they hop around with their babies in a pouch.
Other fair dinkum animals found only on Australian soil include the koala, platypus, brush tailed possum and saltwater crocodile.
To book your holiday in Australia phone 1300 939 414 or find a local Flight Centre store and speak to a travel expert.