The research concerns itself first with the survey and analysis of 163 tourism small businesses from both rural and city locations in Victoria which are a representative sample of the 5,000 to 9,000 tourism small businesses in the State. In investigating the extent to which such businesses use a strategic marketing approach the basic premise underlying the investigation is that there is a positive correlation between strategic marketing and business performance. Following an extensive examination of the literature relating to business, tourism and marketing strategy, the author puts forward a strategy model which provides the framework for the research and quantitative analysis of the survey. This takes the form of a model strategy. The research indicates the application and significance of the strategic marketing practice to both the Victorian and wider Australian tourism small business sector.