Gold Coast is a city with a population of around 5,00,000. The 2010 Delhi Games proved trouble due to shoddy construction, venue delays and budget overruns which saw the cost of the event to be tripled.
Australia is the only nation to host commonwealth games for the fifth time, showing its ability to host major international sporting events.
"This morning's victory was a fantastic result for the Gold Coast, Queensland and Australia," said Wayne Swan, deputy Prime Minister and Sport Minister Mark Arbib in a joint statement.
"It will provide a big boost to tourism and jobs on the Gold Coast, both in the lead up to the Games and during the event," they said.
In 2000, Australia had hosted Olympics in Sydney and in 2003, the country hosted Rugby World Cup.
The government claimed that it would be looking forward to gain some advantage for the country. The country may repeat its successful records as previously Australian participants won a record 221 medals.
"The Games attract thousands of athletes from around the Commonwealth, as well as tens of thousands of fans and a global television audience of well over one billion people," said Swan and Arbib.
Hosting the Commonwealth games will be a great opportunity to showcase to a huge global audience all that the Gold Coast has to offer, they added. This commonwealth game will bring together 71 countries and the 2014 event is to be held in Glasgow in Scotland.