Australia's sex industry is preparing for a business boom arising from the Catholic Church's World Youth Day in July.

A report by market analysts IBISWorld has predicted strong growth for brothels, strip clubs and prostitutes in 2008-2009, particularly because of an expected surge in tourism as a result of World Youth Day.

Pope Benedict XVI will make his first visit to Australia for the event which is expected to attract pilgrims to Sydney from around the world.

IBIS World senior industry analyst Ed Butler told the media that the report did not mean the 225,000 international pilgrims or clergy would be going to brothels or strip clubs.

But the event, to be held from July 15 to 20, would also draw people from outside the church including tourists, support staff and media - and some of them would use the sex industry's services.

"Any major event will drive tourism, which is closely related to the sex industry... and World Youth Day will also bring out a certain number of non-religious people," he said.

"Growth would be estimated to be greater, but the religious nature of the event is likely to have a dampening effect on growth rates, as many of the visitors may have moral anxieties relating to this particular industry's services."

Butler said Pope Benedict XVI's visit would give Australia exposure in foreign markets, driving tourism growth after the event had finished.

IBIS World estimated the sex industry's revenue to grow from 1.08 billion dollars in 2007-08 to 1.16 billion dollars in 2008-09.

This would be growth of about 8 percent for the next financial year, well above the 2.75 per cent growth for the overall economy predicted in the Australian budget.

Ramada Khawley, function manager for strip clubs such as Men's Gallery and Pure Platinum, said she was not expecting an upswing in trading.