Katoomba rated the eighth best Australian town to visit

It is the first time that Katoomba has made it into the top 10 rankings, and is one of three NSW towns to make Wotif's Australian town of the year index for 2020, after the Big Banana town, Coffs Harbour (number one), and Batemans Bay on the south coast (number four).

Blue Mountains mayor, Mark Greenhill, said he was thrilled to see Katoomba in the top 10 list.

"Locals know how special a place the whole of the Blue Mountains is, so to have one of our major towns honoured in this way is really wonderful for all of us, not just Katoomba," he said.

"There's nowhere like the Blue Mountains - we're one of only two cities in the world that sit within a World Heritage-listed National Park, and while that comes with challenges, it also comes with unmatched beauty.

"Parts of our region, like so many in NSW and beyond, were directly damaged by the recent bush fires. And the whole of the Blue Mountains are feeling the aftermath as we walk the road to recovery.

"I'd like to echo the message of these awards - we are open for business and offer visitors an experience they cannot find anywhere else."

This is the third year of the annual awards announced by the online travel site, Wotif.

The results were based on a data index that recognises Australian destinations that offered good affordability, well-rated accommodation and increasing traveller interest in the last 12 months on Wotif.com.

Wotif managing director, Daniel Finch, said: "During what is an incredibly tough time for many parts of the country, this year's awards are more relevant than ever, as a way of recognising the hard-working tourism operators and local businesses who make up Australian tourism - the driving force behind many regional communities."

The full list of top 10 is: