The announcement today that Australia and the United States have finalised an Open Skies Agreement to expand air travel and competition on the trans-Pacific route augurs well for Melbourne and the Victorian tourism industry, says VTIC.

"The prospect of more services across the Pacific holds out the prospects of more direct flights between Melbourne and US destinations", says VTIC Chairman Mr Jeremy Johnson.

"Current incumbent providers have tended to prioritise Sydney as a hub and it is hoped the increased opportunities for other airlines will cater for the strong demand for Melbourne as a destination – figures currently suggest around 70,000 passengers per annum on US flights travel through Sydney to get to and from Melbourne.

"Airline seat capacity is vital to international tourism growth, both in major cities and regional areas.

"No matter how well Victoria is promoted, if international visitors cannot get a flight here, they will go somewhere else," says Mr Johnson.