Australia Tourism Statistics

The Australian tourism industry is demonstrating a remarkable recovery and resilience, driven by a resurgence in international arrivals and a strong domestic travel market. The industry's contribution to the economy is expected to reach 10.69% by 2028, supporting employment and regional development. This article provides a detailed overview of Australian international and domestic tourism statistics,…

Josh Rapaport

August 14, 2024

The Australian tourism industry is demonstrating a remarkable recovery and resilience, driven by a resurgence in international arrivals and a strong domestic travel market. The industry’s contribution to the economy is expected to reach 10.69% by 2028, supporting employment and regional development.

This article provides a detailed overview of Australian international and domestic tourism statistics, their economic impact, future trends, and challenges.

International Visitors

In 2024, Australia will continue attracting many international visitors, reinforcing its status as a premier global travel destination. According to Tourism Research Australia (TRA), the country will welcome 9.25 million international tourists this year, marking a robust recovery from the recent global travel disruptions.

This section delves into these international visitors’ demographics, preferences, and economic contributions.

Total International Arrivals

Australia’s international tourism sector has seen a notable recovery in 2024. According to Tourism Research Australia, the total number of international visitors to Australia reached 7.2 million for the year ending March 2024. This represents 84% of the arrivals seen in the same period in 2019, before the pandemic. The overall spending by international visitors also rose to $30.9 billion, surpassing the pre-COVID levels by 1%​.

The same report shows the number of nights spent by international visitors in Australia recovered. It totaled 266.7 million, 99% of the levels seen in the year ending March 2019. This near-full recovery indicates that while visitor numbers are still catching up, those who visit stay longer and contribute significantly to the tourism economy​​.

Seasonal Trends and Peak Periods

Seasonal trends in international arrivals to Australia show clear peak periods corresponding to the country’s summer months, particularly from December to February. In contrast, the winter months from June to August see a dip in international visitor arrivals.

Let’s illustrate the trend with this season’s numbers of visitor arrivals:

  • December 2023: 876,850
  • January 2024: 603.790
  • February 2024: 857,950
  • March 2024: 751,110
  • April 2024: 593,100
  • May 2024: 512,310

The tourism industry’s strategic focus on promoting events and festivals during off-peak seasons has also started to pay off. Events like the Sydney Festival in January (459,000 on the opening weekend in 2023) and the Melbourne International Comedy Festival from March to April (597,690 in 2022) have driven tourist traffic during these months​.

Moreover, there is a growing trend of international visitors aligning their trips with specific events or seasonal attractions, such as the Great Barrier Reef’s coral spawning in November or the Australian Open in January.

But where do international visitors go in Australia? The statistics show the following:

  • 47.63% Sydney
  • 31.30% Melbourne
  • 17.08% Brisbane
  • 10.59% Perth
  • 9.08% Gold Coast
  • 6.85% North Tropical Queensland
  • 5.83% Adelaide
  • 4.34% Sunshine Coast
  • 3.84% North Coast, New South Wales
  • 2.74% Hobart and the South

Top Source Markets

According to Tourism Australia, most international travel to Australia comes from countries like China, New Zealand, and the United States. However, there has been a noticeable increase in visitors from other Asian markets like India and Vietnam, which were previously grouped under ‘Other Asia’ but are now significant contributors.

Here are the statistics:

  • The largest source country is New Zealand, with 1.2 million arrivals in the year ending March 2024. At this time, New Zealanders spent $2.1 billion in Australia.
  • China ranks after New Zealand with 681,000 arrivals and a stunning $7.2 billion spent.
  • The third top market is the United States, which has 663,000 arrivals and a $2.1 billion spend.
  • The United Kingdom follows with 578,000 trips, pumping $2.0 billion into the Australian economy.
  • India is fifth with 390,000 trips and a $1.5 billion spend.
  • Vietnam and Japan are also significant markets, with 178,860 and 343,000 arrivals, respectively.

Purpose of Visit

According to the same report by Tourism Research Australia, leisure travel remains a primary reason for international visitors to Australia. In the year ending March 2024, holiday travel accounted for 2.9 million trips, representing 75% of March 2019 levels. These visitors spent $9.7 billion in Australia, 96% of what was recorded in March 2019.

Most of these tourists visited key destinations such as Sydney, Melbourne, and the Great Barrier Reef, seeking to enjoy Australia’s renowned natural beauty and cultural attractions.

Business travel also plays a significant role, though it has not yet fully recovered to pre-COVID levels. In the same period, 742,000 business trips were made, equating to 74% of the numbers seen in March 2019.

Business travelers’ spending reached $2.1 billion, or 93% of the pre-pandemic figure. Major cities, known for their commercial hubs and conference facilities, are the primary destinations for these visitors.

Education is another crucial sector, with 463,000 trips recorded for education purposes, representing 79% of the pre-pandemic levels. The spending by education-related travelers was significant, amounting to $11.3 billion, which is 97% of the March 2019 figure.

Australia’s reputation for high-quality higher education institutions and a welcoming environment for international students continues to attract many from countries like China and India.

Travel for visiting friends and relatives (VFR) remains robust, with 2.5 million trips, matching pre-pandemic levels. Spending in this category reached $4.8 billion, 15% higher than in March 2019. This growth indicates a strong cultural and familial connection that draws international visitors to Australia.

Statistics of Domestic Tourism: Australia

Domestic tourism is vital to Australia’s visitor economy, contributing significantly to regional development and economic growth. This section provides insights into overnight trips, day trips, and overall domestic travel patterns nationwide.

Overnight Trips and Expenditure

Domestic overnight travel steadily increased in 2024, reflecting a growing preference among Australians for local travel experiences. Tourism Research Australia shows the total spend on domestic overnight trips was $109.4 billion, marking a 2% increase year-on-year.

Domestic tourism is crucial in bolstering the Australian economy, particularly in regional areas. Domestic tourists’ expenditures support local businesses, create jobs, and sustain regional economies.

Interestingly, regional Victoria saw a slight decrease of 1% in overnight expenditure but remained 58% above pre-pandemic levels in 2019. Also, Melbourne alone accounted for $11.9 billion in domestic overnight spending, up 5% from the previous year, highlighting the city’s strong appeal to local travelers and its significant contribution to the state’s economy.

New South Wales (NSW) remains a top destination for domestic travelers, with Sydney as the main attraction. However, regional areas like the Hunter Valley, Blue Mountains, and South Coast are increasingly popular for their scenic beauty and diverse experiences.

According to data for the year ending March 2024, NSW welcomed 40.9 million domestic and international overnight visitors, spending 213.0 million nights in the state (a 22.0% rise from the year before). The total expenditure from these overnight stays reached $42.7 billion, which is a 15.4% growth year over year.​

Queensland (QLD) remains a favorite among domestic travelers, with destinations like the Gold Coast, Sunshine Coast, and the Whitsundays drawing significant numbers. The state’s natural attractions, including the Great Barrier Reef and national parks, are crucial to its popularity.

The state attracted 25 million visitors in March 2024. Tourists spend millions in QLD daily — stats put the figure at $93.2 million per day in the year ending December 2023.

Tasmania remains a popular choice for domestic travelers, with Hobart and Launceston as key destinations. In March 2024, three million visitors spent $4 billion in the state. South Australia welcomed seven million visitors, spending $6 billion enjoying its wine regions and unique landscapes.

Western Australia (WA) experiences a steady flow of tourists (11 million according to the latest data), particularly to Perth and the Margaret River region. Regional areas like Broome and Kimberley are becoming more popular due to their remote and rugged beauty.

The Northern Territory (NT), with its iconic attractions like Uluru and Kakadu National Park, remains a unique destination for domestic tourists. Alice Springs and Darwin also see a good number of visitors, with the total for NT being one million last season.

Finally, the Australian Capital Territory (ACT), primarily Canberra, attracts tourists for its national institutions and events. Last season, there were three million visitors and nine million nights.

Day Trips and Activities

Day trips are another popular form of domestic tourism, with Australians frequently exploring nearby attractions. Popular destinations for day trippers include coastal regions, national parks, and cultural sites. Areas like the Great Ocean Road in Victoria and the Blue Mountains in New South Wales continue attracting many day visitors.

The TRA reports that in December 2023, Australians went on 17.3 million day trips and spent $3.0 billion. While they traveled 17% more compared to 2022, they also spent 13% less.

During the same month, all domestic travelers spent:

  • $2.48 billion on food and drink
  • $1.43 billion on domestic airfares
  • $0.93 billion on petrol
  • $0.80 billion on shopping
  • $0.39 billion on organized tours and entertainment

Domestic Tourism Trends

Top domestic tourism trends include staycations, road trips, and weekend getaways.

The trend of staycations — where people holiday in their city or nearby — has gained popularity. This trend is fueled by the desire to reduce travel costs and the increasing appeal of discovering local attractions. Staycations offer a convenient and affordable way for Australians to relax and enjoy their leisure time without extensive travel.

Road trips remain a quintessential part of Australian culture, offering the freedom to explore the country’s diverse landscapes. A 2022 survey found that 42% of Australians, or 8.2 million people, planned a domestic road trip in the following six months.

Weekend getaways to regional destinations have also become increasingly popular, providing a quick escape from urban life.

Economic Impact of Tourism in Australia

Tourism is a cornerstone of the Australian economy, playing a crucial role in the nation’s financial health and job creation. This section deals with tourism’s economic impacts, including its contribution to GDP, employment generation, and infrastructure investments.

Tourism’s Contribution to GDP

Tourism significantly contributes to Australia’s GDP, encompassing direct, indirect, and induced impacts. Direct impacts include immediate expenditures on travel and accommodation, while indirect impacts are seen in the supply chain, such as food production for restaurants. Induced impacts are the broader economic effects resulting from tourism-related employment and spending.

For instance, in 2023, the direct contribution of tourism to Australia’s GDP was approximately AU $63 billion. According to the Australian Bureau of Statistics, tourism contributed 2.5% to the country’s GDP in the 2022-2023 season (4.4% higher than before the pandemic, in current prices).

Comparatively, tourism consumption’s indirect and induced effects equaled AU $164.5 billion in 2022-2023.​ This makes tourism a larger economic driver than industries like agriculture ($152 billion) and utilities ($114 billion).

Employment in the Tourism Sector

Tourism is a vital source of employment in Australia, creating numerous job opportunities across various regions. As of March 2024, the tourism sector employed approximately 644,460 people, about 5% of the total employment in Australia​​. This includes jobs in hospitality, transportation, and retail sectors directly linked to tourism activities.

There were 443,400 jobs indirectly supported by tourism in the 2022-2023 season, totaling 1,069,600.

Moreover, the regional impact of tourism employment is substantial. In areas heavily reliant on tourism, such as Queensland and Tasmania ($28.8 billion and $3.5 billion domestic spending alone), the sector supports a significant portion of the workforce, providing essential economic opportunities and reducing unemployment rates​.

For example, tourism accounts for 5.8% of direct jobs in Tasmania, higher than the national average. In Queensland, the percentage stands at 4.7%, according to the TRA.

Tourism Infrastructure and Investment

Investments in tourism infrastructure are critical to supporting and sustaining the industry’s growth. Key investments include developing and expanding airports, hotels, restaurants, and attractions.

For instance, the latest Tourism Investment Monitor shows 19 aviation projects worth $18.8 billion, 129 arts, recreation, and business projects worth $25.1 billion, and 159 accommodation projects adding 24,300 rooms to Australia’s supply (valued at $12.2 billion).

For example, the planned addition of an airport in Sydney is expected to bolster the Australian tourism industry and handle an increased number of Australian residents and overseas arrivals.

Additionally, government initiatives and incentives, such as the THRIVE 2030 strategy, aim to bolster tourism infrastructure through financial support and policy measures.

This strategy focuses on modernizing and diversifying tourism offerings. The target is to increase visitor expenditures to the 2019 levels of $166 billion by 2024 and grow them to $230 billion by 2030​.

The Australian Government has pledged significant funds to support this initiative:

  • $75.5 million in targeted support for travel agents and tour arrangement service providers
  • $60 million over three years to attract visitors from diverse international markets
  • $2 million for developing an industry-led employment and skills platform
  • $4.8 million for Tourism Research Australia to enhance data collection and analysis capabilities

These investments are critical to ensuring that the tourism sector can recover and sustain growth, securing its role as a vital component of the Australian economy​ (Austrade)​​ (DNSss)​.

Tourism Trends and Challenges

Tourism is a dynamic industry that is continuously evolving to meet travelers’ changing preferences and needs. This section explores three key trends shaping the future of tourism and the challenges that come with them.

By examining sustainable tourism, experiential travel, and the impact of technology, we can gain insights into how the industry is adapting to contemporary demands and environmental considerations.

Sustainable Tourism

Sustainable tourism is increasingly prioritized to mitigate the environmental impact of travel. Its market size in Australia reached $2.9 billion in 2023, and it should grow by 21% between 2023 and 2028.

Efforts to reduce carbon footprints include promoting low-impact transportation options and encouraging the use of renewable energy in tourism facilities.

For instance, the Australian tourism sector has been working to reduce its carbon emissions through initiatives such as the “Eco Accreditation Program,” which certifies environmentally responsible tourism businesses​.

Eco-tourism emphasizes responsible travel practices that preserve natural habitats and cultural heritage. In Australia, eco-tourism destinations like the Great Barrier Reef and the Daintree Rainforest attract visitors keen to experience nature while minimizing their environmental footprint.

According to Nielsen, in 2019, over 2.2 million Australians planned to engage in eco-tourism, whether domestically or abroad. Compared to the general population, eco-tourists are predominantly younger, with 72% being under 45 years old and 58% are more likely to be students.

The Rise of Experiential Travel

Experiential travel focuses on providing authentic, immersive experiences that allow travelers to connect with local cultures and traditions. This trend has become popular as more tourists seek meaningful and unique travel experiences.

In Australia, cultural tourism, including Indigenous experiences, has become a significant draw. According to the TRA State of the Industry 2023 Report, an estimated 1 million international visitors will engage in cultural activities in 2023.

According to figures by Cultural Attractions of Australia, in the year ending March 2019, international cultural visitors contributed $28.4 billion to Australia’s economy, accounting for 64% of the total $44.3 billion spent by all international tourists. Interestingly, cultural visitors spend 20% more and stay 25% longer.

The rise of experiential travel profoundly affects local communities, providing economic benefits and promoting cultural exchange. Local artisans, tour guides, and small businesses often benefit from the increased demand for unique experiences. However, it also presents challenges, such as managing tourist numbers to prevent cultural and environmental degradation.

Tourism Research Australia shows that communities that embrace experiential travel have higher visitor satisfaction rates and economic upliftment. However, careful management is essential to maintain these benefits.

Technology and Tourism

Technology has revolutionized tourism, particularly through online booking platforms and social media. These tools have made travel planning more accessible and convenient, allowing travelers to book flights, accommodations, and activities.

Platforms like Airbnb and Booking.com have grown exponentially, with online travel bookings accounting for over 60% of total travel reservations in 2023. Social media platforms also play a crucial role in influencing travel decisions, with 87% of millennials using platforms like Instagram for travel inspiration.

Big data analytics enable the personalization of travel experiences, enhancing customer satisfaction by tailoring services to individual preferences. Travel companies use data to predict trends, optimize pricing, and offer personalized recommendations.

According to a McKinsey report, personalized marketing in the travel industry can increase revenue by up to 10%. Additionally, big data helps improve operational efficiency and customer service, providing a competitive edge in the crowded travel market.

Future Outlook for Australian Tourism

Australia’s tourism industry has long been a significant contributor to the national economy, drawing visitors from around the globe with its unique attractions and experiences. In fact, by 2028, tourism’s total contribution to Australian GDP is expected to reach 10.69%.

The expected number of international trips to Australia should rise consistently in the coming years, growing by 37.8% between 2024 and 2029:

  • In 2025, the number of international arrivals is forecasted at 10.17 million.
  • For 2026, the expected number is 11.05 million.
  • For 2027, it’s 11.91 million.
  • For 2028, it’s 12.31 million.
  • Finally, in 2029, it’s forecasted at 12.71 million visitors.

Given the sector’s value to the country’s economy, the Australian government has several initiatives aimed at supporting tourism:

Regarding emerging trends and growth opportunities, the latest TRA report expects international travel to Australia to exceed its pre-COVID level in 2025.

Total visitor spending in Australia is projected to grow at an average rate of 6% annually over the next five years, reaching $223.3 billion by 2028 (61% above pre-pandemic levels).
International visitor spending is expected to rise significantly from $12.7 billion in 2022 to $28.6 billion in 2023, marking a 125% increase or an additional $15.9 billion. By 2028, this expenditure is forecasted to reach $50.7 billion, reflecting an annual average growth rate of 12% throughout the forecast period.

Expenditure on domestic overnight trips is forecasted to grow from $101.3 billion in 2022 to $109.1 billion in 2023, an increase of 8% or $7.8 billion. This spending is expected to rise to $132 billion by 2028, with an annual average growth rate of 3.9% over the next five years.

Similarly, spending on domestic day trips is anticipated to increase from $29 billion in 2022 to $32.6 billion in 2023, a 12% rise or $3.6 billion. By 2028, this figure should reach $40.5 billion, demonstrating an annual average growth rate of 4.4% during the forecast period.

According to the report, markets such as India, China, and Vietnam will drive even more growth in the following years. However, global economic fluctuations and climate change are significant challenges.

Just a single event, the Victoria 2022 Flood cost $612 million, with over a third of damages suffered by the tourism and agriculture sectors, while the Black Summer bushfires eliminated $2.8 billion from the tourism supply chain.

With the Great Barrier Reef contributing over $6.4 billion a year to Australian GDP and an estimated 64,000 jobs, its loss would be catastrophic to the tourism industry in Australia, not to mention its significant impact on Australian and global ecology.

According to the Climate Council Report, the country’s northern half would be unfavorable for tourism in the latter half of the century without effective action to address climate change.

Welcoming International Visitors to Australia

Despite ongoing challenges such as climate change and economic uncertainty, strategic investments and government initiatives will bolster growth. The Australian tourism industry is set for continued expansion, with emerging markets and evolving travel trends presenting new growth opportunities.

However, addressing environmental and economic challenges will ensure the sector’s long-term sustainability and success.