Spending by overseas and domestic tourists has soared by more than 20 per cent in the past two years.
The Tourism Industry Association estimates that in the year to March spending will reach $32.5 billion, with the value of tourism growing three times faster than volume.
Association chief executive Chris Roberts said the industry was well ahead of schedule in working towards a $41 billion annual spend.
"Two years on, and the industry's performance has exceeded all forecasts. We are well ahead of the growth rate needed to reach our $41 billion goal by 2025," he said.
About 300,000 people work directly or indirectly in tourism and that number had increased by 15,000 during the past two years.