Indonesia is set to overtake New Zealand as Australia's favourite overseas destination, with more than a million tourists scheduled to visit the country by the end of the year.Ten years ago, New Zealand attracted almost three times the number of Australians to its shores than Indonesia. But, with Bali as its major drawcard, Indonesia now appears certain to reach the one million milestone for the first time in a calendar year – and topple New Zealand as Australia's No.1 outbound destination as early as next year.

News of the major tourism growth has coincided with confirmation, from the Indonesian Government, that it will scrap its US$35 visa entry fee for Australian nationals from January 1 next year.

Enjoying their first trip: Laura Robertson, Joel Walsh and their daughter Taylor in Seminyak, Bali. Credit:Jason Childs

Oni Yulifan, from Indonesia's Ministry of Tourism, said when he joined the ministry in 1994, he would have considered it "impossible" that a million Australians could ever visit his nation in a single year.

"There was limited vision and infrastructure then. Today, that has all changed," he told The Sun-Herald. "Our uniqueness and culture are major attractions. There is also greater accessibility and value for money than ever before."