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In proportion to the increase in the quality of life, surplus money and living standards worldwide human being’s desire to study, feel and experience new environments has increased. Tourism has developed into an important industry that satisfies an important basic human need. In Australia, tourism is one of the biggest industries and a major contributor to the economy. Not only is it a major export and main source of providing occupations and tax revenue it is also an industry, which attracts foreign investment. This essay will not only discuss thoroughly contribution to the economy of Australia but also remark on its definitions, classifications, historical feature and environmental impact. Although the concise Oxford dictionary defines it as follows ‘Tourism is organized as touring and a person who partakes in a tour’ (in Richardson 1995:11) and one of Australian organization, BIE (Bureau of industry economics) (1983: 1) states that tourists are people travel more than 40 km from their home for any other reason than to commute to work for a minimum of 24hrs, there is no unique and university accepted definition. In regard to classification tourism will be divided into three sub-groups of inbound international, outbound