THE number of Australians dying overseas skyrocketed as an increasing number of travellers took advantage of cheap international airfares.

Figures provided to The Daily Telegraph revealed Thailand was the destination where more Australian holiday makers died.

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Yet-to-be-released Department of Foreign Affairs and Trade figures showed that in 2008-09, 1038 died while on holiday, up from 994 the previous year and a huge jump from 2004-05 when 642 perished.

The number of Australians arrested overseas also soared, cracking the 1000 mark in 2008-09.

According to the latest figures, Thailand, the US, Indonesia and China were the main destinations where Aussie tourists were getting into legal trouble.

New Zealand topped the list for the most popular Australian tourist destination in 2008-09, with nearly one million visitors. It was also a relatively safe place to visit and recorded just 22 Australian deaths.

Thailand was fifth of the top 10 destination list with 378,000 visitors but recorded the most Australian tourist deaths with 105.

The US accommodated 500,000 Australian tourists and recorded 50 deaths, while Indonesia recorded 58 deaths among 436,000 visitors.

The number of Australians going to hospital overseas shot up to 1480 cases in the past financial year - a 130 per cent increase from 2004-05.

In Thailand, Indonesia and China alone there were 522 hospital admissions in 2008-09.

While there were just 81 Aussies taken to hospital across the US, it was the destination of choice to get into trouble with the law.

In the 12 months to June more than 200 Australians were arrested in the US, well above the 63 arrested in Thailand and the 60 detained in China. Hong Kong and Singapore followed closely behind.

The number of Australians in overseas prisons as of June 30 was 223 - 60 more than four years ago.

The US had the most Australians behind bars (36), followed by New Zealand (30) and the UK (24).

In the past few years the number of Australians overseas seeking help from the Federal Government had soared to nearly 200,000 cases in the past financial year.

DFAT's smartraveller website advised Australians that if they couldn't afford to take out travel insurance when they head overseas, they really can't afford to travel.

"Every day our consular officers deal with human tragedies involving the death, injury or hospitalisation of Australians abroad," the smartraveller website said.

Originally published as Aussie dream holidays turn to disaster