Although the influx of foreign visitors to Australia could slow down in financial year 2012, the tourism industry's value would hit $100 billion by year-end, the Tourism Forecasting Committee said.

The committee, funded by the federal government, reduced its forecast of overseas visitors' growth to 1 per cent from its previous estimate of 1.3 per cent.

For the succeeding financial year, the body predicted another slower growth of 3 per cent from its previous forecast of 3.3 per cent.

The body explained the slower growth of overseas visitor arrival to the eurozone debt crisis, political unrest in the Middle East and the general global economic uncertainty.

It pegged the number of foreign visitors to 6 million for the current financial year and 6.1 million for the next financial year.

The bulk of the foreign visitors are expected to be from Asia who would account for 45 per cent of all foreign arrivals by 2021 from the current 41 per cent. The Asian visitors, mostly for China and Indonesia, would offset the expected continued softness in travel from the European markets.

Foreign tourism as well as domestic tourism would be responsible for the projected $2 billion increase in value for the industry from the previous financial year's $98 billion value.

However, while incoming visitor growth would slow down, it is in the opposite direction for outbound tourism as the committee forecasts the number of Australians who would go on foreign trips would rise to 8 million for the same period, up by 7.8 per cent. In the next financial year, the number is even expected to increase by 6.6 per cent to 8.6 million.

By 2021, the number could further go up to 11 million as more Aussies head for holidays and business trips to China, Indonesia and the U.S.

Most of the outbound Aussies would head for family holidays to Bali, Thailand or Hawaii, but may go for domestic destination for short vacations, said committee head and demographer Bernard Salt.

The committee said domestic tourism would be fueled mainly by business travel to local destinations, particularly those in New South Wales, Victoria and Western Australia. It will be a continuation of the current trend in which business day trips grew by 11 per cent while leisure day trips increased by a paltry 0.9 percent.

Tourism Minister Martin Ferguson said he was encouraged by the numbers.

":Although the industry still faces many challenges - including a strong dollar tempting Australians overseas - forecasts of Australians spending more nights holidaying in Australia, and spending more while doing it, also demonstrate the resilience of the tourism sector," The Australian quoted Mr Ferguson.

In anticipation of the growth in air passengers, Virgin Australia said it will put in place major enhancements to its Sydney airport facilities, particularly the domestic terminal, and the domestic terminal also in Melbourne Airport. The enhancements are mainly a state-of-the-art lounge with 560 seats that will offer views over Botany Bay.

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