This paper presents results from a study which highlights current issues for tourism investment in Australia. The study was commissioned by the Sustainable Tourism Cooperative Research Centre following workshops with industry which identified this as a gap in research. The study was conducted through extensive interviews with tourism industry and government representatives in several locations throughout Australia in early 2010. In particular, the study looked at the drivers and impediments for tourism investment in metropolitan and regional tourism destinations. The paper reports on both similarities and different priorities found for metropolitan and regional areas. The paper will include a presentation of the key issues to be tackled for investment attraction for the private sector over the next 10 years; identify appropriate criteria for assessing and prioritising public sector investment in tourism; and examine examples of innovative public and private sector cooperation in investment in tourism infrastructure and the key elements required for success.