NEW ERA: According to new research cashed-up baby boomers will fuel a new Australian sexual revolution.

Cashed-up Australian baby boomers including liberated older women will fuel the sexual services industry in future, a business analyst has forecast.

Traditionally the sex trade has revolved around young men visiting brothels or using escort services, but future growth will be fuelled by the older generation, aged 55-plus, research by IBISWorld suggests.

The study also suggests internet sites promoting sexual rendezvous between strangers with no exchange of funds are creating increased competition for the world's oldest profession.

"Currently men over 55 contribute just 10 percent of industry revenue, with women making up eight percent," IBISWorld Australian general manager Jason Baker said today.

"But given the increasingly sexual liberalisation of society and particularly the sexual freedom of women, we anticipate the female customer segment will grow over the next five years.

"We predict an increase in the number of women not only paying for sexual services but visiting strip clubs and accessing sexual material via the telephone, internet, pay TV and DVD, all of which will positively affect demand for sexual services.

"Boomers will put boom-boom back into the sex industry."

Australians make between 12 and 16 million visits to an estimated 20,000 sex workers every year, and to more than 5000 legal brothels, escort agencies and sexual massage services and to 2000 illegal outfits.

But internet services, introduction agencies and clubs providing contacts for non-paying sex pose a significant threat to the sex industry which hauled in $A2.1 billion ($NZ2.64 billion) last year, Mr Baker said.

"Internet sites promoting sexual rendezvous between strangers with no exchange of funds have seen strong growth in recent years," he said.

"These negate the need to pay for sexual gratification and sidestep many of the moral difficulties posed by soliciting prostitutes, making them a popular alternative and a trend which is causing concern in some traditional areas of the industry."

Queenslanders and West Australians pay the most for sexual services, where tourism and the mining boom push up prices IBISWorld industry analyst Edward Butler said.

"In WA it's the predominance of mining towns affecting the price and in Queensland it's more driven by tourism," Mr Butler said.

Sporting events and holiday periods tended to keep sex workers busy, with the Commonwealth Games and the AFL Grand Final keeping Melbourne prostitutes extremely busy, Mr Butler said.

"Nationwide the busiest time is Christmas and New Year when people are interstate and there is less need for discretion," Mr Butler said.

While NSW, Qld and Victoria account for 78.3 percent of all establishments in the sex trade, revenue and wages are higher in Victoria, NSW, WA and the ACT where incomes are higher and there is a higher quality of establishments to attract wealthier clientele.

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