OVERNIGHT visits to Daylesford and the Macedon Ranges have increased nine per cent over the past year.
A National Visitor Survey found that only trips to Phillip Island, up by 17.5 per cent, topped the area's increase.
State Tourism and Major Events Minister Tim Holding said the survey showed domestic overnight visitors to Victoria increased by 3.6 per cent to 17.7 million - well above the national average increase of 1.7 per cent.
Mr Holding said the figures highlighted the strength of tourism in Melbourne and regional Victoria.
"While many other states are experiencing static or declining domestic tourism numbers, Victoria is seeing an increase which is providing a boost to tourism operators across the state," he said.
Other key indicators for the past 12 months included a 12.6 per cent increase in daytrip visitors to regional Victoria, a 10.3 per cent jump in domestic overnight visitor expenditure, totalling $8.7 billion, and a 7.7 per cent boost
in interstate visitors to Melbourne.
Shire tourism manager Geoff Ryan said the Daylesford Regional Visitor Information Centre had 120,000 people through its doors every year with another 190,000 visiting the shire's Visit Daylesford website.
Mr Ryan said the region was doing well for a number of reasons including being close to Melbourne, easy access through either the Calder or Western highways and a large number of festivals offering something for everyone.
The Daylesford Macedon Ranges Marketing Campaign, backed by State Government dollars, was also proving very successful, he said.
Mr Ryan said new tourism ventures, including the Forest Resort at Creswick, were also attracting new tourists to the region.