Carrying little more than a rucksack and a plump bank account, more backpackers than ever are flocking to Australia and featuring Newcastle, Port Stephens and the wine country in their itineraries.

Tourism Australia's International Visitors Survey showed backpackers visitor numbers jumped by 2 per cent last year to 570,000 visitors and expenditures were up by 10.4 per cent to almost $3.5 billion.

Hunter Tourism hopes to cash in on the growing number of international visitors using a $500,000 grant to target backpackers.

More backpackers from Canada, Germany, Korea and former eastern block countries, such as the Czech Republic, have discovered Port Stephens, tourism operator Michelle Cox said.

"The world's getting a lot smaller and hostels are more mainstream and upmarket now," Ms Cox, from One Mile Beach's Melaleuca Backpackers, said.

"The global financial crisis didn't affect the market because today's backpackers were cashed up and usually experiencing their first taste of freedom after years of study.

"Backpackers aren't the hippies they used to be," she said.

They stay longer and spend more than any other demographic, Tourism Australia figures showed.

"News spreads quickly within the backpacker fraternity, with word of mouth also an invaluable marketing tool," Hunter Tourism's Sheridan Ferrier said.

"While saving on accommodation costs, they spend more on activities. Port Stephens is a drawcard for adventure activities."

Many backpackers also choose to extend the length of their trips by picking grapes in the Hunter vineyards or working on organic farms around Maitland.