Foreign investors are being urged to build new five-star resorts and hotels in Darwin.

A lack of hotel beds has left tourists struggling to find accommodation in the Top End.

Conoco Philips recently rented seven floors of the new Pandanas hotel in Knuckey St.

Intervention workers have also booked out many hotel rooms for months at a time, putting a strain on the tourism market.

Tourism Minister Kon Vatskalis raised the issue of new hotels during his Chinese trade mission.

Mr Vatskalis said the emergence of the budget airlines had lengthened the tourist season in Darwin and that more investment in quality hotels was urgently needed.

"The backpackers I knew when I was young, were hairy, wore old packs and were trying to do tourism on a limited budget," he said.

"Today ... pay their bills with an American express gold card."

"It is really good for us, because that is money in the Territory - but it also puts pressure on our hotels."