Indigenous tourism operators across Western Australia have been backed to attract more visitors from the country's number one tourism market.

The Western Australian Indigenous Tourism Operators Council said $180,000 from the Federal Government's National Foundation for Australia-China Relations would help fund its new Ancient Cultures Meet tourism initiative.

WAITOC was one of 27 successful grant recipients, and CEO Robert Taylor hopes the funding will help Indigenous tourism operators better understand Chinese tourists' perceptions and their demand for cultural experiences.

The Ancient Cultures Meet program was recently conceived to help First Nations businesses develop engagement strategies with the Chinese tourism market, highlighting the variety of Indigenous tourism and cultural experiences, and connecting in-bound, Chinese tourists to Australia with Aboriginal tourism operators on the ground.

Mr Taylor hoped the strategy would provide practical solutions for Indigenous tourism operators to connect and communicate their cultural tourism offerings to the Chinese traveller.

"WAITOC is delighted to have our 'Ancient Cultures Meet' program selected as a recipient for funding ... Indigenous tourism continues to be a strategic priority for promoting Australia overseas," he said.

China was Australia's number one tourism export market before COVID-19, but Mr Taylor said that trend did not extend to growth in the Indigenous tourism market, which experienced an increase on the intrastate and interstate visitor front.

"In our experience, China does not even make it into the top 10 markets for many indigenous tour operators in Australia," Mr Taylor said.

"This project is an important first step in the journey to fixing that problem."

WAITOC's opportunity to lure more visitors from China makes sense given the country's close proximity to Perth, which Asian tourists often use as a gateway to explore the vast west coast and rest of Australia.

Mr Taylor said research showed approximately 80 per cent of international visitors still would like an Aboriginal tourism experience on their holiday in Australia, yet only 20 per cent of overseas travellers made bookings with Indigenous operators.

"This project will provide measurable outcomes and practical solutions to ensure that Indigenous tourism - and the promotion of First Nations culture - has a greater chance of success and uptake by Chinese visitors," he said.

The Ancient Cultures Meet program would also entail a collaborative, industry-university research project, designed to identify practical solutions for Indigenous tourism operators to increase their reach in China and prepare them for more inbound guests from there.

Key findings from the WA government's most recent data on Aboriginal tourism from 2022 showed visitor interest in the sector grew year-on-year since 2014, but far outweighed participation from travellers here.

Aboriginal tourism businesses in WA contributed more than $63 million to the state economy and employed more than 500 full-time workers, an increase from the previous data captured in 2016-17, despite the global pandemic and ensuing border closures.

Australian Foreign Minister Penny Wong said the 27 grant recipients would help the Australian industry re-engage with China in key economic growth areas for Australia, including agriculture and tourism.

Other notable grants included $405,000 to the Australian Tourism Export Council, to support First Nations businesses, wine exporters and SMEs, and $70,000 to the Queensland University of Technology for an Indigenous artists residency program in Taiwan.

The AFL meanwhile received $200,000 to produce a documentary based from the book Celestial Footy, an educational resource for Australian schools on the history of Chinese-Australian participation in football, while the South Australian-based Australian Dance Theatre was granted $120,000 to develop and deliver Two Blood, an ode to the historical links between early Chinese migrants and First Nations communities.

They also support collaboration on climate change, energy and the environment, after similar sentiments were agreed at the recent China-Australia annual leader's meeting.

"Central to our approach to Australia's relationship with China is engaging in the national interest," Ms Wong said.

"The National Foundation for Australia-China Relations is a key avenue for this, and these grants further strengthen community and people-to-people ties."

Tourism Minister Don Farrell hoped the grants would create meaningful new partnerships and have lasting business effects.

"China is our largest trading partner and a key contributor to our tourism and international education sectors," he said.