How can Australia achieve a steady and long-term recovery?

Total number of people employed in the Australian tourism industry in fiscal year 2021 (by state) (unit: thousands) Data source: Statista.com

Inbound Tourism: The Road to Recovery

In 2022, Australia received just over 1 million international tourists, a slight recovery from the previous year. Most tourists to Australia come to visit relatives and friends, and New South Wales is the most popular state for international tourists. Tourists from New Zealand are the most common tourists to Australia, and tourists from India have also seen a significant increase in recent years. In 2022, total travel expenditure by international tourists in Australia was approximately A$9.7 billion, which is relatively low compared to pre-pandemic levels, but an increase from 2021, indicating that the industry is gradually recovering.

Total tourism expenditure of international tourists in Australia from fiscal year 2010 to fiscal year 2022 (in billion Australian dollars) Data source: Statista.com

Outbound tourism: travel interests and intentions

With borders reopening in 2022, Australians are excited to start traveling overseas again, with many planning more holidays or intending to spend more money traveling abroad in 2023. In 2022, dining out, going to the beach and shopping are the main travel interests of Australian outbound tourists. Australian tourists particularly like to try street food and local specialties overseas, as well as buying local handicrafts and exploring outdoor activities. Despite this, the sustainability of travel is becoming more and more important among Australian consumers, with some choosing to travel closer to home to offset their carbon footprint.

In a survey of Australians conducted in November 2022, about 46% of respondents said they planned to take more holidays in 2023 than the previous year. More than two-thirds of respondents also planned to spend the same or more money on travel abroad in the coming year.

Australian consumers’ views on sustainable tourism in 2022 Source: Statista.com

Explore your own backyard

Australia's diverse wildlife and landscapes, from rainforests to beaches and deserts, are popular with both international and domestic tourists. The coronavirus pandemic has led many Australians to choose to travel domestically on holiday, largely due to widespread international travel restrictions.

Domestic visitor expenditure in Australia totalled more than $69 billion in 2022, outstripping international visitor spending. New South Wales, Victoria and Queensland are the most popular regions for domestic tourists. Despite the country’s large size, driving remains the most common mode of transport for domestic tourists to travel around the country. Nevertheless, air travel remains an important mode of transport for long-distance travel and interstate travel.