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Australia, already one of the world's biggest tourist destinations, is set to become even more competitive following the country's open skies agreement with the US, it has been claimed.

The accord will allow Australian and North American carriers to choose the frequency of services and routes between the countries.

Previously, new operators were only able to offer four flights a week, reports the Australian Associated Press.

Christopher Brown, managing director of the Tourism and Transport Forum of Australia, predicted that increased air access could boost visitor numbers substantially.

He forecast that the country could welcome more than 800,000 annual visitors from the US by 2016.

'This open skies agreement ensures that we will have the capacity to service future demand and puts the Australian tourism industry in a much stronger competitive position,' Mr Brown said.

'The USA is our fourth-biggest tourism market and US visitors spent $1.2 billion [£553m] in Australia in 2006-07.'

Qantas, Australia's national airline, also welcomed the open skies agreement, saying that it will bring 'new opportunities for growth and competition'.

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