New figures out of Australasia reveal international arrivals increased 4.6 per cent in Australia last year, despite a strong Australian dollar and economic stagnation in key source markets, while arrivals dropped 1.6 per cent in New Zealand.

Tourism Australia revealed eight of its top 10 inbound tourist markets were from the Asia Pacific Rim, with China leapfrogging the UK to become the country’s second largest source market.

Tourism Australia managing director Andrew McEvoy said: “In many ways, 2012 was a year of transition for our industry, as we continue to adapt to the Asian Century and the enormous opportunities provided by the region’s fast emerging and increasingly mobile middle classes.”

He said difficult economies had dampened performance out of the UK and Western Europe but the US market was showing signs of recovery.

In New Zealand China again showed dramatic growth, up 35.4 per cent on the previous year, passing the US and UK to become the second largest visitor market.

Tourism New Zealand blamed its overall drop in visitor numbers on the economic situation in Europe, the high exchange rate and a spike in visitor numbers in 2011 for the Rugby World Cup.