Tasmania's economy is moving away from forestry thanks to a booming tourism sector, according to the findings of a new report.
Data from the National Australia Bank (NAB) reveals that unemployment in the area is also being tackled thanks to the popularity of Tasmania as a tourist destination.
The tourism renaissance is highlighted by statistics from Tourism Tasmania, which show the island state is ranked second only to Queensland.
NAB tourism updates are conducted every six months and are designed to offer a snapshot of the economic performance of all states and territories in Australia.
According to the latest study, over one million domestic tourists visited Tasmania in the 12 months ending March 2016. These individuals spent a total of $2.01 billion on the island during this period - an increase of seven per cent.
Tourism Industry Council of Tasmania chief executive Luke Martin told Mercury that he was convinced Tasmania's positive economic performance came as a result of its sustained tourism boom.
"One of the most pleasing things happening now is that the concept of the visitor economy is being embraced - and these reports reflect that the industry is generating the good," he commented.
NAB Tasmanian retail manager Matthew Ricker also highlighted the extent of Tasmania's resurgence as a tourist hotspot.
"Tourism accounts, directly and indirectly, for almost one-tenth of the state's economy - the highest proportion in Australia - as visitors are drawn by great quality attractions such as our national parks and Mona [the Museum of Old and New Art]," he said.
Mr Ricker suggested that more Australian holidaymakers are staying in the country for their vacations as local holidays have become cheaper and more competitively priced.
