CANADA has ousted Australia as the world's friendliest nation and, to rub it in, China has knocked us out of the top 10 index that rates a nation's brand name value.

The Anholt Nations Brand Index (NBI) poll has found Canadians have overtaken Australians as the world's friendliest people, after interviewing 25,000 people in 35 developed and developing countries.

Australia also was bumped down two places in the brand name valuation index, from ninth to 11th, as China made its debut in the top 10.

But Australia managed to hold down the top spot as a holiday destination "if money was no object" and ranks as the country richest in natural beauty, closely followed by New Zealand.

NBI creator Simon Anholt said the poll, which is taken quarterly, highlighted how each nation was viewed by the rest of the world, reflecting aspects of trade, tourism and immigration.

"Although Australia may have slipped from being seen as the world's friendliest nation, its reputation has improved in exports, governance and culture," Mr Anholt said.

"Although global public opinion may not see the Aussies saying 'G'day' quite as much as before, there is a growing awareness of the country's booming economy, and the world is perhaps starting to take Australia a little more seriously."

Australia has dropped one place to sixth in overall tourism popularity, which is headed by Italy, France and Spain in the top three positions.

Austrade chief economist Tim Harcourt said Australia needed to finetune its image to attract more tourists.

"Although Australia still has a strong reputation as an aspirational destination, we must focus more on our cultural heritage, national parks and alternative, more accessible holiday options to encourage a broader tourism appeal," Mr Harcourt said.