Sydney, which ranked third in last year's survey, impressed travellers for being the most clean and user-friendly city as well as having the best restaurants.
"I'm delighted that readers of Conde Nast Traveler voted Sydney their favourite overseas city," Conde Nast Traveler editor Sarah Miller said.
"They think that it is fantastic for its friendly people but they really adore the varied cuisines on offer, with the city scoring the highest for food.
Ms Miller said while Australia had slipped one place in the countries category in this year's survey - the 10th run by the magazine - it still had plenty of appeal for tourists.
"A past winner, Australia scored consistently highly in all categories but coming out well on top is the scenery and the friendly people," she said.
The Great Barrier Reef made its debut appearance in the favourite islands category, with the Maldives and Greek Islands claiming the top two spots.
When it came to rating the best spots to lay your head after a hard day's travelling, Hobart's Henry Jones Art Hotel came out on top.
It was followed by the Great Barrier Reef's Angsana Resort & Spa, Longitude 131 at Uluru in the Northern Territory, Lilianfels in the New South Wales Blue Mountains and Huka Lodge.
In the airport category the magazine's readers voted Hong Kong International Airport in first place ahead of Changi in Singapore and Dubai International.
Results from Conde Nast Traveller magazine's 10th annual survey of the world's most popular tourist destinations:
Favourite Cities
1. Sydney (last year's ranking - 3)
2. New York (4)
3. Paris (5)
4. Rome (1)
5. Barcelona (2)
6. Venice (6)
7. San Francisco (new entry)
8. Cape Town (17)
9. Singapore (5)
10. Hong Kong (18)
11. Bangkok (new entry)
12. Amsterdam (15)
13. Florence (8)
14. Istanbul (16)
15. Vancouver (new entry)
16. Buenos Aires (new entry)
17. Madrid (11)
18. Marrakech (20)
19. Dubai (9)
20. Berlin (new entry)
Favourite Countries
1. India(4)
2. Italy (1)
3. Thailand (7)
4. Australia (3)
5. New Zealand (2)
6. South Africa (5)
7. Spain (8)
8. France (6)
9. Brazil (9)
10. Mexico (11)
11. Greece (16)
12. Switzerland (10)
13. Argentina (new entry)
14. Chile (new entry)
15. Sri Lanka (13)
16. Japan (new entry)
17. Canada (14)
18. Vietnam (new entry)
19. USA(15)
20. Egypt (new entry)
Favourite Islands
1. Maldives (1)
2. Greek Islands (4-)
3. Balearic Islands (new entry)
4. Mauritius (3)
5. Barbados (7)
6. Seychelles (2)
7. Bali (new entry)
8. Zanzibar (new entry)
9. St Lucia (10)
10. Great Barrier Reef Islands (new entry)
11. Hong Kong (new entry)
11. Phuket (11)
13. Cuba (new entry)
14. Koh Samui ((6)
15. Capri (13)
16. Sicily (4-)
17. Langkawi (18)
18. St Barts (8)
19. Bahamas (new entry)
20. Sardinia (16)
Favourite hotels in Australasia & South Pacific
1. Henry Jones Art Hotel, Hobart, Tasmania
2. Angsana Resort & Spa Great Barrier Reef, Australia
3. Longitude 131, Uluru, Australia
4. Lilianfels Blue Mountains Resort & Spa, New South Wales
5. Huka Lodge, Taupo, New Zealand
6. The Observatory Hotel, Sydney
7. Cradle Mountain Lodge, Tasmania
8. Hayman, Queensland
8. Sails in the Desert Hotel, Uluru, Australia
10. Cape Lodge, Western Australia
Favourite Airports
1. Hong Kong International (2)
2. Changi, Singapore (3)
3. Dubai International (1)
4. Schiphol, Amsterdam (6)
5. Madrid (new entry)
6. Vancouver (new entry)
7. Tokyo Narita (13)
7. Sydney (10)
9. Munich (8)
10. Zurich (7)
Favourite Long-haul Airlines
1. Virgin Atlantic (2)
2. Air New Zealand (6)
3. Emirates (3)
4. Singapore Airlines (5)
5. British Airways (4)
6. Cathay Pacific (1)
7. Qantas (9)
8. Thai Airways (7)
8. South African Airways (new entry)
10. Qatar Airways (new entry)
- AAP
