Overseas tourists are spending more at travel agencies in Australia, despite the increasing popularity of online travel providers.

International visitors spent A$1.5 billion ($1.7 billion) on their Visa cards in Australia during the September quarter, an increase of 4 per cent on the same period a year ago, according to the latest available data from card group Visa International.

The largest rise in spending occurred at travel agencies, with cardholder spending climbing 22 per cent to A$108 million.

This was followed by hotels, with a rise of A$8.8 million, and business services, with an increase of A$3.8 million.

Travel agencies are thought to be losing a lot of their business to their online counterparts, but Visa International's executive vice-president for Australia and New Zealand, Bruce Mansfield, said spending was growing at both types of travel providers.

Get the full story at The Newzealand Herald