Most Australians no longer appreciate the value of a Northern Territory holiday, according to new research by Brand Asset Consulting (BAC).

The brand performance organization said this has led to the NT dropping down the pecking order in preferred holiday destinations and signalling a potential tourist drought.

The troubling news for NT Tourism comes from a survey carried out by BAC in September.

BAC interviewed more than 2000 Australian adults simultaneously in

Sydney, Melbourne, Perth and Brisbane and the results could make top end tourism operators shiver.

Given a choice of nine different destinations, from Queenstown to Margaret River, NT was voted ninth out of nine. Gold Coast was voted favourite ahead of Broome and Margaret River.

When questioned about the likelihood of visiting NT in the next year, only eight per cent said it was a possibility. And overall, the younger the adult, the less likely they were to either rate or visit the Northern Territory.

David Evans, research director of BAC, said that the problem could get worse if not addressed.

"Our research revealed that the low interest is compounded by the perception that NT holidays are expensive, making the NT a difficult sell in a difficult market.

One in two men and two in three women cited cost as the main barrier to visiting.

In fact cost was a more important factor than all other barriers combined."

A driving factor behind the idea of low value is a low understanding of what a NT holiday might offer. Most people expect to explore the bush but, after that, less than 50 per cent of Australians thought they could play on a beach, spend time on the water or even enjoy interesting culture or cuisine.

Evans pointed out that there is a silver lining in the tourism cloud for Northern Territory.

"Potential visitors would be much more amenable to the NT if they could access more all-inclusive packaged holidays. This is as much about understanding the real cost of a holiday and budgeting, as it is about convenience.

"Secondly, Australians need to be persuaded that the NT has much more to offer than the outback experience.

"These are the "tipping point" issues that will boost NT Tourism visitor figures from minor improvements to major gains in the domestic market."