Lexi Webster
Australia's travel industry is booming, with a record number of 11.97 million international trips made by Australians in the year ending March 2025. The industry is experiencing a significant rebound, driven by major sporting events, better flight access, and a growing interest from British travellers. The country's unique appeal, including its natural beauty, outdoor lifestyle, and reputation for safety, continues to attract visitors from all over the world. Australia's tourism sector is also witnessing a steady recovery from the COVID-19 pandemic, with a 64% increase in bookings for Spring/Summer 2025 compared to the previous year. The industry is expected to thrive, with total spending forecasted to exceed $227.7 billion by 2027, fuelled by robust domestic and international travel.
| Characteristics | Values |
|---|---|
| International visitors in 2023 | Over 5 million |
| International visitors in 2019 | 8.6 million |
| International visitors in March 2025 | 761,230 |
| International visitors in 2022 | Australia ranked as the 10th-largest market for inbound visitors |
| Number of domestic day visitors in 2023 | Not available |
| Tourism sector GDP | Not available |
| Ad spend by the travel and tourism industry in Q1 2024 | Over $153 million |
| Ad spend by the travel and tourism industry between April 2021 and March 2022 | $381 million |
| Ad spend by the travel and tourism industry in the year ending March 2023 | Over $608 million |
| Preferred platforms for booking travel packages | Booking Holdings Network (37%), TripAdvisor (27%), Virgin Travel and Tourism (20%), and Expedia (15%) |
| Preferred platforms for accommodation bookings | Booking.com (30%), Airbnb (17%), and Hotels.com (10%) |
| Percentage of bookings made through retail travel agents or online travel agents (OTAs) for trips to the US | 38% |
| Percentage of Australians planning to travel domestically in the next 12 months | 76% |
| Percentage of Australians planning to travel overseas in the next 12 months | 52% |
| Average number of states visited by Australians travelling to the US | 2 |
| Average number of cities visited by Australians travelling to the US | 2-3 |
| Average length of stay of Australians travelling to the US | 18 nights |
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What You'll Learn
International travel to Australia is increasing
Australia's tourism industry is experiencing a significant rebound in 2025, with international arrivals projected to surpass pre-pandemic levels and potentially reach 11 million by 2027. This surge in international travel to Australia is driven by several factors, including major sporting events, improved flight accessibility, and a growing interest from British travellers.
The Australian Travel Industry Association's (ATIA) May 2025 Travel Trends Report reveals a notable increase in international travel by Australians, with 11.97 million trips in the year ending March 2025, up from 10.54 million the previous year. This growth is reflected in outbound destinations such as Japan, which saw a 38.4% increase, China with 35% growth, and Vietnam with a 26.2% rise.
Inbound international travel to Australia is also on the rise, with 8.31 million visitors in the year ending March 2025, an increase from 7.78 million the previous year. This growth is particularly notable among British travellers, with a steady 6.69% increase in visitors from the United Kingdom, who tend to stay longer and spend more. The 2025 British & Irish Lions tour, featuring nine matches across Australia, is expected to attract over 40,000 visitors, further boosting international arrivals.
Additionally, Australia's reputation for safety, natural beauty, and outdoor lifestyle continues to attract international visitors, especially those seeking a rewarding long-haul break. The country's effective management of the COVID-19 pandemic may also contribute to its appeal as a safe and desirable destination.
The increase in international travel to Australia is not limited to any specific age group. While youth international travel (18-35) leads the charge, retirees are also travelling more, with a notable 18% increase in the 71+ demographic. Overall, Australians are showing a growing confidence and diversity in their destination choices, with Southeast Asia and Northeast Asia experiencing significant growth in Australian visitors.
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Australia's tourism industry is recovering
Several factors are driving the rebound in international tourism to Australia. Sporting events such as the 2025 British & Irish Lions tour and the NRL Magic Round in Brisbane are attracting international visitors, particularly from the UK and Ireland. The UK remains one of Australia's most valuable tourism markets, with British travellers staying longer and spending more. Australia's reputation for safety, natural beauty, and outdoor lifestyle continues to appeal to British travellers seeking long-haul breaks.
Additionally, improved flight access and infrastructure upgrades are making Australia a more accessible destination. Asia is a key growth market, with Japan, China, Vietnam, and Indonesia experiencing significant year-on-year increases in visitation from Australia. Southeast Asia, in particular, is a popular choice for Australian travellers, with Thailand, Indonesia, and Vietnam being firm favourites.
The recovery of Australia's tourism industry is having a positive impact on the visitor economy and broader growth. Total spending is forecast to exceed $227.7 billion by 2027, driven by strong domestic and international travel. The industry is also creating jobs, with an estimated 30,700 positions sustained by international holiday visitors.
However, challenges remain for the industry, including ongoing workforce shortages, reduced air connectivity to some iconic destinations, and rising operational costs. Industry experts have called for increased investment and marketing efforts to support the recovery and ensure a more even distribution of benefits across the sector. Despite these challenges, Australia's tourism industry is well-positioned for a landmark year in 2025, with international arrivals and major events confirming its status as a top destination.
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UK travellers are a vital market
Australia's tourism industry is experiencing a significant rebound in 2025, with international arrivals projected to surpass pre-pandemic levels and reach 11 million by 2027. This surge is driven by various factors, including major sporting events, improved flight accessibility, and a growing interest from British travellers. Notably, the United Kingdom is one of Australia's most crucial and valuable tourism markets.
In the year ending September 2024, over 590,000 UK visitors travelled to Australia, representing a notable 6.69% increase from the previous year. This consistent rise in UK visitors is particularly significant, as British tourists tend to stay longer and spend more than travellers from other countries. The presence of over 1.1 million UK-born residents in Australia also contributes to this trend, as visiting friends and family encourages longer stays and exploration beyond typical tourist destinations.
Australia's appeal to British travellers is enhanced by its reputation for safety, natural beauty, and an outdoor lifestyle. Additionally, the country's ability to offer similar attractions to the United States, such as vibrant cities and stunning landscapes, without the associated political tension, makes it an attractive alternative long-haul destination. The 2025 British & Irish Lions rugby tour, with nine matches across Australia, is expected to be a significant draw for UK visitors, further boosting tourism numbers.
The complexity of Australia as a destination underlines the importance of trade distribution partners in encouraging higher spending, extended stays, and broader travel within the country. Retail agents also remain vital for long-haul holidays, as British travellers continue to prioritise protection in the post-pandemic era. Furthermore, the rising demand for experiential travel, including cultural exploration, food and drink, and outdoor activities, aligns well with Australia's tourism strengths.
In summary, the UK travellers market is indeed vital to Australia's thriving tourism industry. With its strong growth, high spending, and extended stays, the UK market plays a pivotal role in shaping Australia's position as a top international destination.
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Sports tourism is a major driver
Australia's travel industry is thriving, with a record number of 11.97 million international trips made by Australians in the year ending March 2025. This represents a notable increase from the previous year's 10.54 million trips. The country's tourism industry is also experiencing a significant rebound, with international arrivals expected to surpass pre-pandemic levels and reach 11 million by 2027.
In Australia, sports and nature often collide, creating unique experiences such as sunrise surfing or golfing alongside kangaroos. The country's diverse calendar of sporting events, ranging from the iconic Darwin Lions Beer Can Regatta to the quirky watermelon festivals, attracts travellers seeking fun and adventure.
The 2025 British & Irish Lions rugby tour, with nine matches across Australia, is expected to draw over 40,000 visitors, primarily from the UK and Ireland. The 2025 NRL Magic Round in Brisbane has already sold over 150,000 tickets, boosting hotel occupancy and solidifying its impact on tourism in Queensland.
Additionally, the upcoming 2026 FIFA World Cup and Olympics in Italy and Los Angeles are expected to further fuel the momentum in sports tourism, with younger travellers, particularly Gen Z and millennials, driving this phenomenon. Sports tourism is not just about the event but also about the broader travel experiences it enables, positively impacting mental health and creating meaningful bonding opportunities.
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Australians are travelling more
Aussies are venturing to a diverse range of destinations, with Asia, particularly Southeast Asia, being a top choice. Countries like Japan, China, Vietnam, and Indonesia have experienced significant growth in Australian visitors. Additionally, outbound leisure travel continues to be a leading trend, with a 15% jump in the number of people taking holidays between January and March 2025 compared to the same period in 2024.
The way Australians travel is also evolving. While beach holidays remain popular, there is a growing demand for off-the-beaten-path experiences. Travellers are seeking untamed adventures and unique experiences that offer a sense of exploration. This shift is reflected in the rise of expedition cruises, hikes, and group tours to destinations like Mongolia, Portugal, Iceland, and Antarctica.
Domestic travel within Australia is also thriving. The Indigenous tourism sector is gaining prominence, with an increasing number of international and domestic travellers participating in Aboriginal guided tourism offerings. This growth showcases a deeper interest in exploring Indigenous culture and history.
The tourism industry in Australia is expected to continue thriving, with international arrivals projected to surpass pre-pandemic levels and reach 11 million by 2027. Major sporting events, improved flight access, and Australia's appeal as a safe and welcoming destination are contributing to this positive outlook.
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Frequently asked questions
International travel by Australians jumped to 11.97 million trips in the year ending March 2025, a sharp rise from 10.54 million the previous year.
Australia's tourism industry is set for a major rebound in 2025, with international arrivals on track to surpass pre-pandemic levels. The industry is expected to benefit from major sporting events, better flight access, and a rising wave of interest from British travellers.
Australia's domestic tourism market is sizeable, with strong growth in bookings and consumer demand. For example, a report for Spring/Summer 2025 showed a 64% increase in bookings compared to the same period in 2024.
