International Visitor Survey figures show that, between 1999 and 2004, Victoria gained more backpackers than any other state and boosted the number of nights they spend in the state by 12per cent.

A spokeswoman for Victorian Tourism Minister John Pandazopoulos said the state was beginning to reap the benefits of campaigns that focus on adventure tourism and reach travellers before they leave their home countries.

"Melbourne's nightlife and bar culture and diversity of sporting events are a real attraction," she said. "Because of its smaller size, it's also a lot cheaper to get around."

Backpackers may travel cheaply but are worth a lot of money, pumping more than $2billion into the national economy each year.

Tropical North Queensland Backpackers and Hostels Association chairman Peter Schlothauer said the drop in the state's market share was partly due to the fact many backpackers were sold 11-day package deals during their first few days in the country.

"Therefore they don't come to Queensland as long as they used do," Mr Schlothauer said. "We are not doing anything wrong but we're allowing agencies to advertise Queensland as a shorter destination."

English backpacker Sarah Sharples, 23, arrived in Cairns yesterday from the Whitsundays on her second trip to Australia. "If you say Melbourne to me, I think the tennis, the Grand Prix and St Kilda," she said. "I like the Queensland weather and there is so much great stuff to do here."

German backpacker Magdalena Huhn, 20, spent a month picking fruit in Shepparton, Victoria, and will spend the next six weeks travelling around Queensland.

"The Grand Prix was fantastic," she said. "Melbourne is great. I like it that Victoria is not everyone's pick because it does not have the party scene."