The 2011 Australian Traveller Readers' Choice awards have declared Margaret River the best town in Australia. The award went to the South West town for its renowned wineries, high grade restaurants and world famous surf breaks.

WA VISITOR CENTRE AWARDS

The award comes just days after the town was ravaged by fires which destroyed historic landmark Wallcliffe house and forced residents to evacuate their homes.

Victoria's capital Melbourne took home the award for best Australian city and was applauded for its history, sporting events, shopping and laneway bars and cafes.

Sydney received the awards for best restaurant (Quay), Best bar or pub (The Ivy) and best guided tour for the bridge climb.

Broome's Cable Beach Resort won the award for best resort and Australian Traveller editor Elisabeth Knowles said the wards reveal a lot about Australians and travel.

"These awards are voted for by the most important people in the industry, the travellers themselves. It's a real mark of what Australians really think about travelling in their own country. Despite all the doom and gloom about domestic travel, our readers tell us a very different and positive story," she said.