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News Center > Marketing performance

Nielsen data reveals Australia’s changing travel trends and the brands spending big to attract Aussie tourists

3 minute read | June 2023

• Industry’s biggest ad spenders revealed as travel marketing budgets jump 60% YOY
• Top local and OS destinations
• Most popular Aussie travel websites
• States and territories spending the most to attract travellers

Sydney – June 5, 2023 – Ahead of the upcoming King’s Birthday long weekend, Nielsen has released a comprehensive analysis of the shifting travel preferences of Australians, the sites they visit online to inspire and plan their getaways, and the industry heavy-hitters spending big to attract them.

Latest Nielsen Consumer and Media View (CMV) data reveals Australians’ growing interest in domestic travel, online travel bookings, and an increased desire for travel in general.

According to the data, 76% of Australians “display a keen interest in visiting new places,” with a significant majority showing a preference for “nature-centric experiences” (64%), “coastal proximity” (59%), and “exploration of secluded, off-the-beaten-track locations” (54%).

Nielsen CMV data also reveals a surge in travel interest among younger Aussies (25 to 39), with 30% planning some sort of travel – a statistic that makes this demographic 10% more likely to travel than the average Australian.

In terms of online booking trends, both domestic (34%) and overseas (29%) travel packages are predominantly booked through online platforms, reflecting a significant growth over recent years. The preferred platforms among Australians include Booking Holdings Network (37%), TripAdvisor (27%), Virgin Travel and Tourism (20%), and Expedia (15%) for travel packages, while Booking.com (30%), Airbnb (17%), and Hotels.com (10%) lead in accommodation bookings.

Data from Nielsen Digital Content Ratings (DCR) also highlights the strength of Uber and Qantas in the sector, with 6.74 million and 5.88 million users respectively in March, and only slight decreases in April, with the added bonus of high average user engagement times. Booking Holdings Network also emerged as a significant player, becoming the third-largest platform in terms of users.

Average user engagement time on most travel platforms was consistent from March to April, although Uber and Airbnb did see an increase. On average, Uber users spent just over 22 minutes interacting with the platform, while Airbnb users spent roughly 17-and-a-half minutes on the platform.

While 42% of Australians expressed their inclination towards domestic holidays, there’s a noticeable rise in interest for international travel. Over the next year, 35% of Australians aim to venture abroad, marking a noteworthy uptick of 11% compared to the data from two years ago.

Among those with international travel plans, popular destinations of choice comprise of Europe (39%), North America – specifically the USA or Canada (24%), the UK (23%), and New Zealand (18%).

In addition, Nielsen Ad Intel data also shows that between April 2021 and March 2022 the travel and tourism industry spent $381 million on advertising in Australia. However, post-COVID, that increased by 60%. In the last year, the sector has poured more than $608 million into advertising, with Qantas, Stayz, Airbnb, Flight Centre, and Virgin Australia topping the list of the biggest tourism and travel advertisers over that time.

When it comes to the nation’s domestic tourism boards, the agencies with the deepest ad pockets over the last 12 months were Tourism & Events Queensland, followed by Visit Victoria, Destination NSW, Western Australian Tourism Commission, South Australian Tourism Commission, Tourism Tasmania, and Northern Territory Tourist Commission.

About Nielsen

Nielsen shapes the world’s media and content as a global leader in audience measurement, data and analytics. Through our understanding of people and their behaviours across all channels and platforms, we empower our clients with independent and actionable intelligence so they can connect and engage with their audiences – now and into the future. Nielsen operates around the world in more than 55 countries.

Learn more at www.nielsen.com and connect with us on social media (Twitter, LinkedIn, Facebook and Instagram).

Media Contact Dan Chapman Assoc. Director, Communications, Nielsen APAC [email protected] +61 404 088 462

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Travel and tourism industry in Australia - statistics & facts

Inbound tourism: the road to recovery, outbound tourism: top destinations and interests, domestic tourism: exploring their own backyard, key insights.

Detailed statistics

Number of international visitors to Australia FY 2023, by country of residence

Number of outbound tourists from Australia FY 2023, by destination

Direct tourism GDP growth rate Australia FY 2006-2023

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Number of visitors at Sydney Airport Australia Feb 2019-Dec 2023, by passenger type

Breakdown of hotels Sydney Australia 2023, by category

Number of domestic visitors Sydney, Australia 2014-2023, by type of trip

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• Premium Statistic Share of the GDP of the tourism sector in Australia 2013-2028
• Basic Statistic Direct tourism GDP Australia FY 2006-2023
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• Basic Statistic Tourism contribution Australia FY 2023, by industry
• Premium Statistic Tourism contribution Australia FY 2023, by state
• Premium Statistic Number of tourism businesses Australia 2023, by type
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Share of the GDP of the tourism sector in Australia 2013-2028

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Direct tourism GDP Australia FY 2006-2023

Direct tourism gross domestic product (GDP) in Australia from financial year 2006 to 2023 (in billion Australian dollars)

Growth of direct tourism gross domestic product (GDP) in Australia from financial year 2006 to 2023

Tourism contribution Australia FY 2023, by industry

Gross value added (GVA) of tourism in Australia in financial year 2023, by tourism related industry (in billion Australian dollars)

Tourism contribution Australia FY 2023, by state

Gross value added (GVA) of tourism in Australia in financial year 2023, by state (in billion Australian dollars)

Number of tourism businesses Australia 2023, by type

Number of businesses in the tourism sector in Australia as of June 2023, by type (in 1,000s)

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Number of employees in the tourism sector in Australia in financial year 2023, by state and type (in 1,000s)

Inbound tourism

• Premium Statistic Number of international visitors to Australia FY 2010-2023
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Number of international visitors to Australia FY 2010-2023

Number of international visitor arrivals to Australia from financial year 2010 to 2023 (in millions)

Number of international visitor arrivals to Australia in financial year 2023, by country of residence (in 1,000s)

Number of international visitors to Australia FY 2023, by age group

Number of international visitor arrivals to Australia in financial year 2023, by age group (in 1,000s)

Number of international visitors to Australia FY 2023, by state visited

Number of international visitor arrivals to Australia in financial year 2023, by state visited (in 1,000s)

Number of international visitors to Australia FY 2023, by purpose of visit

Number of international visitor arrivals to Australia in financial year 2023, by purpose of visit (in 1,000s)

International visitor trip expenditure Australia FY 2010-2023

Total trip expenditure of international visitors in Australia from financial year 2010 to 2023 (in billion Australian dollars)

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Trip expenditure of international visitors to Australia in financial year 2023, by country of residence (in million Australian dollars)

Outbound tourism

• Premium Statistic Number of outbound tourists from Australia FY 2006-2023
• Basic Statistic Number of outbound tourists from Australia 2017-2024, by state of residence
• Premium Statistic Number of outbound tourists from Australia FY 2023, by destination
• Premium Statistic Outbound tourist trip expenditure FY 2019-2023
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• Premium Statistic Leading tourism experience interests among outbound travelers Australia 2022
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Trip expenditure of Australian outbound travelers from financial year 2019 to 2023 (in billion Australian dollars)

Outbound tourist trip expenditure Australia FY 2023, by destination

Trip expenditure of Australian outbound travelers in financial year 2023, by destination (in million Australian dollars)

Leading tourism experience interests among outbound travelers Australia 2022

Leading tourism experience interests among outbound travelers from Australia in 2022

Leading sport tourism experience interests of outbound travelers Australia 2022

Leading sport tourism experience interests among outbound travelers from Australia in 2022

Domestic tourism

• Premium Statistic Number of domestic overnight visitors Australia 2014-2023
• Premium Statistic Number of domestic overnight visitors Australia 2023, by state visited
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• Premium Statistic Domestic overnight tourist trip expenditure Australia FY 2014-2023
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Now boarding: Faces, places, and trends shaping tourism in 2024

After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. 1 Unless otherwise noted, the source for all data and projections is Oxford Economics. Over the same time frame, international travel should likewise ramp up to its historical average of nine billion nights. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveler outlays in 2024, representing roughly 9 percent of this year’s global GDP.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

There’s no doubt people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go? We developed a snapshot of current traveler flows, along with estimates for growth through 2030. For the purposes of this report, we have divided the world into four regions—the Americas, Asia, Europe, and the Middle East and Africa.

Our analysis identifies three major themes for industry stakeholders to consider:

• The bulk of travel spending is close to home. Stakeholders should ensure they capture the full potential of domestic travel before shifting their focus to international travelers. And they should start with international travelers who visit nearby countries—as intraregional trips represent the largest travel segment after domestic trips.
• Source markets are shifting. Although established source markets continue to anchor global travel, Eastern Europe, India, and Southeast Asia are all becoming fast-growing sources of outbound tourism.
• The destinations of the future may not be the ones you imagine. Alongside enduring favorites, places that weren’t on many tourists’ maps are finding clever ways to lure international travelers and establish themselves as desirable destinations.

The bulk of travel spending is close to home

International travel might feel more glamorous, but tourism players should not forget that domestic travel still represents the bulk of the market, accounting for 75 percent of global travel spending (Exhibit 1). Domestic travel recovered from the COVID-19 pandemic faster than international travel, as is typical coming out of downturns. And although there has been a recent boom in “revenge travel,” with travelers prioritizing international trips that were delayed by the pandemic, a return to prepandemic norms, in which domestic travel represents 70 percent of spending, is expected by 2030.

The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders. Domestic demand has softened slightly, as American travelers return abroad. 2 Dawit Habtemariam, “Domestic U.S. tourism growth levels off as Americans head overseas,” Skift, August 18, 2023. But tourism players with the right offerings are still thriving: five national parks broke attendance records in 2023 (including Joshua Tree National Park, which capitalized on growing interest from stargazers indulging in “dark sky” tourism 3 Scott McConkey, “5 national parks set attendance records in 2023, and the reasons may surprise you,” Wealth of Geeks, April 16, 2024. ).

China’s $744 billion domestic travel market is currently the world’s second largest. Chinese travelers spent the pandemic learning to appreciate the diversity of experiences on offer within their own country. Even as borders open back up, Chinese travelers are staying close to home. And domestic destinations are benefiting: for example, Changchun (home to the Changchun Ice and Snow Festival) realized 160 percent year-on-year growth in visitors in 2023. 4 Shi Xiaoji, “Why don’t Chinese people like to travel abroad anymore? The global tourism industry has lost 900 billion yuan. What is the situation?,” NetEase, February 12, 2024. In 2024, domestic travel during Lunar New Year exceeded prepandemic levels by 19 percent.

China’s domestic travel market is expected to grow 12 percent annually and overtake the United States’ to become the world’s largest by 2030. Hotel construction reflects this expectation: 30 percent of the global hotel construction pipeline is currently concentrated in China. The pipeline is heavily skewed toward luxury properties, with more than twice as many luxury hotels under construction in China as in the United States.

India, currently the world’s sixth-largest domestic travel market by spending, is another thriving area for domestic travel. With the subcontinent’s growing middle class powering travel spending growth of roughly 9 percent per year, India’s domestic market could overtake Japan’s and Mexico’s to become the world’s fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, 5 Murali Krishnan, “Can India’s airports cope with rapid passenger growth?,” Deutsche Welle, February 7, 2024. boosted in part by a state-subsidized initiative that aims to connect underserved domestic airports. 6 “India is seeing a massive aviation boom,” Economist , November 23, 2023.

When travelers do go abroad, they often stay close to home (Exhibit 2).

Europe and Asia, in particular, demonstrate strong and growing intraregional travel markets.

Recognizing this general trend, stakeholders have been funneling investment toward regional tourism destinations. An Emirati wealth fund, for instance, has announced its intent to invest roughly $35 billion into established hospitality properties and development opportunities in Egypt. 7 Michael Gunn and Mirette Magdy, “UAE’s $35 billion Egypt deal marks Gulf powers’ buying spree,” Bloomberg, April 27, 2024.

Europe has long played host to a high share of intraregional travel. Seventy percent of its travelers’ international trips stay within the region. Europe’s most popular destinations for intraregional travelers are perennial warm-weather favorites—Spain (18 percent), Italy (10 percent), and France (8 percent)—with limited change to these preferences expected between now and 2030.

Despite longer travel distances between Asian countries, Asia’s intraregional travel market is beginning to resemble Europe’s. Intraregional travel currently accounts for about 60 percent of international trips in Asia—a share expected to climb to 64 percent by 2030. As in Europe in past decades, Asian intraregional travel is benefiting from diminishing visa barriers and the development of a low-cost, regional flight network.

Thailand is projected to enjoy continued, growing popularity with Asian travelers. Thailand waived visa requirements for Chinese tourists in 2023 and plans to do the same for Indian tourists starting in 2024. It has aggressively targeted the fast-growing Indian traveler segment, launching more than 50 marketing campaigns directed at Indians over the past decade. The investment may be paying off: Bangkok recently overtook Dubai as the most popular city destination for Indian tourists. 8 “Bangkok overtakes Dubai as top destination for Indians post visa relaxation, reveals Agoda,” PR Newswire, January 18, 2024.

A McKinsey ConsumerWise survey on consumer sentiment, conducted in February 2024, suggests that Chinese travelers are also exhibiting high interest in international travel, with 36 percent of survey respondents indicating that they intend to spend more on international travel in the next three months. 9 Daniel Zipser, “ China brief: Consumers are spending again (outside of China) ,” McKinsey, April 8, 2024. Much of this interest is directed toward regional destinations such as Southeast Asia and Japan, with interest in travel to Europe down from previous years. 10 Guang Chen, Zi Chen, Steve Saxon, and Jackey Yu, “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Given travelers’ preference for proximity, how can tourism stakeholders further capitalize on domestic and intraregional travel demand? Here are a few strategies:

• Craft offerings that encourage domestic tourists to rediscover local gems. Destinations, hotels, and transportation providers can encourage domestic tourists to integrate lesser-known cultural landmarks into their trips to visit friends and relatives. In France, the upscale hotel chain Relais & Châteaux markets historic properties that lie far from classic tourist sights—such as Château Saint-Jean in rural Auvergne—as a welcome escape from the bustle of Paris. In Mexico, the Pueblos Mágicos program has successfully boosted domestic tourist visits to a set of “magical towns” that showcase Mexican heritage.
• Fold one-off domestic destinations into fuller itineraries. Route 66 in the United States is a classic road trip pathway, which spurs visits to attractions all along the highway’s length. Tourism stakeholders can collaborate to create similar types of domestic itineraries around the world. For instance, Mexico has expanded on its Pueblos Mágicos concept by branding coordinated visits to multiple villages as “magical routes.” In France, local tourism boards and vineyards have collaborated to promote bucket list “wine routes” around the country.
• Make crossing borders into neighboring countries seamless. Removing logistical barriers to travel can nudge tourists to upgrade a one-off trip to a single attraction into a bucket list journey across multiple, less-trodden destinations. In Africa, for example, Ethiopian Airlines is facilitating cross-border travel to major regional tourist sites through improved air connectivity. In Asia, Thailand has announced its intent to create a joint visa easing travel among Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam.

Source markets are shifting

The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38 percent of international travel spending in 2023 and are expected to remain the top five source markets through 2030. But interest in travel is blossoming in other parts of the world—causing a shift in the balance of outbound travel flows (Exhibit 3).

North Americans’ travel spending is projected to hold steady at roughly 3 percent annual growth. US consumers voice growing concerns about inflation, and the most cost-constrained traveler segments are reducing travel, which is affecting ultra-low-cost airlines and budget hotels. Most travelers, however, plan to continue traveling: McKinsey research suggests that American consumers rank international and domestic travel as their highest-priority areas for discretionary spending. Instead of canceling their trips, these consumers are adapting their behavior by traveling during off-peak periods or booking travel further in advance. Travel spending by Europeans paints a slightly rosier picture, with roughly 5 percent projected annual growth. Meanwhile, the projected 12 percent annual growth in Chinese travelers’ spending should anchor substantial increases in travel spending across Northeast Asia.

Alongside these enduring traveler segments, new groups of travelers are emerging. Eastern Europe, India, and Southeast Asia are still comparatively small source markets, but they are developing fast-growing pools of first-time tourists (Exhibit 4).

India’s breakneck GDP growth of 6 percent year over year is bolstering a new generation of travelers, 11 Benjamin Laker, “India will grow to become the world’s third-largest economy by 2027,” Forbes , February 23, 2024. resulting in a projected annual growth in travel spending of 9 percent between now and 2030. Indian air carriers and lodging companies are making substantial investments to meet projected demand. Budget airline IndiGo placed the largest aircraft order in commercial aviation history in 2023, when it pledged to buy 500 Airbus A320 planes 12 Anna Cooban, “Biggest plane deal in history: Airbus clinches massive order from India’s IndiGo,” CNN, June 19, 2023. ; that same week, Air India nearly equaled IndiGo’s order size with purchase agreements for 250 Airbus and 220 Boeing jets. IndiGo later added an order for 30 additional Airbus A350 planes, well suited to serving both domestic and international routes. 13 “Airbus confirms IndiGo's A350 aircraft order,” Economic Times , May 6, 2024. The Indian Hotels Company Limited is ramping up its hotel pipeline, aiming to open two new hotels per month in the near future. International players are not sitting on the sidelines: seven hotel chains are launching new brands in India in 2024, 14 Peden Doma Bhutia, “Indian Hotels expansion plans: 2 new brands launching, 2 hotels opening every month,” Skift, February 2, 2024. including Marriott’s first Moxy- and Tribute-branded hotels in India and entrants from Hilton’s Curio and Tapestry brands. 15 Forum Gandhi, “Check-in frenzy: International hotel giants unleash fresh brands in India’s booming hospitality landscape,” Hindu Businessline , February 13, 2024. Development focus has shifted away from major metropolises such as Mumbai and Delhi and toward fast-developing, smaller cities such as Chandigarh and Hyderabad.

Southeast Asian travel spending is projected to grow at roughly 7 percent per year. Pockets of particularly high growth exist in Cambodia, Malaysia, and the Philippines. To capitalize on this blossoming source market, neighboring countries are rolling out attractive visa arrangements: for example, China has agreed to reciprocal visa waivers for short-term travelers from Malaysia, Singapore, and Thailand. 16 Julienna Law, “China launches ‘visa-free era’ with Southeast Asia. Will travel retail boom?,” Jing Daily , January 30, 2024.

Travel spending by Eastern Europeans is expected to grow at 7 percent per year until 2030—two percentage points higher than spending by Western Europeans. Areas of especially high growth include the Czech Republic, Hungary, and Poland, where middle-class travelers are increasingly venturing farther afield. Major tourism players, including the TUI Group, have tapped into these new source markets by offering charter flights to warm-weather destinations such as Egypt. 17 Hildbrandt von Klaus, “TUI develops Czech Republic as a new source market,” FVW, December 22, 2023.

Although the number of travelers from these new source markets is growing, their purchasing power remains relatively limited. Compared with Western European travelers (who average $159 per night in total travel spending), South Asians spend 20 percent less, Eastern Europeans spend 40 percent less, and Southeast Asians spend 55 percent less. Only 3 percent of the current Asian hotel construction pipeline caters to economy travelers, suggesting a potential supply gap of rooms that could appeal to budget-constrained tourists.

While acknowledging that historical source markets will continue to constitute the bulk of travel spending, tourism players can consider actions such as these to capitalize on growing travel demand from newer markets:

• Reduce obstacles to travel. Countries can look for ways to strategically invest in simplifying travel for visitors from growing source markets. In 2017, for example, Azerbaijan introduced express processing of electronic visas for Indian visitors; annual arrivals from India increased fivefold in two years. Requirements regarding passport photocopies or in-person check-ins can similarly be assessed with an eye toward reducing red tape for travelers.
• Use culturally relevant marketing channels to reach new demographics. Unique, thoughtful marketing strategies can help destinations place themselves on first-time travelers’ bucket lists. For example, after the release of Zindagi Na Milegi Dobara , a popular Bollywood movie shot in Spain with support from the Spanish Ministry of Tourism, Indian tourism to Spain increased by 65 percent. 18 “ Zindagi Na Milegi Dobara part of syllabus in Spain colleges,” India Today , June 6, 2004.
• Give new travelers the tech they expect. Travelers from newer source markets often have access to tech-forward travel offerings. For example, Indian travelers can travel anywhere within their country without physical identification, thanks to the Digi Yatra app. The Southeast Asian rideshare app Grab has several helpful travel features that competitors lack, such as automated menu translation and currency conversion. Tourism stakeholders should consider how to adapt to the tech expectations of newer travelers, integrating relevant offerings that ease journeys.
• Create vibrant experiences tailored to different price points. Crafting lower-budget offerings for more cost-constrained travelers doesn’t need to result in giving them a subpar experience. Capsule hotels, in which guests sleep in small cubbies, began as a response to the high cost of accommodations in Japan, but they have become an attraction in their own right—appearing on many must-do lists. 19 Philip Tang, “24 of the best experiences in Japan,” Lonely Planet, March 23, 2024.

The places you’ll go: The destinations of the future may not be the ones you imagine

The world’s top ten destination countries (the United States, Spain, China, France, Saudi Arabia, Türkiye, Italy, Thailand, Japan, and India, in that order) currently receive 45 percent of all travel spending, including for domestic travel. But some new locales are gaining traction (Exhibit 5).

A significant number of travelers are expanding their horizons, booking journeys to less visited countries that are near to old standbys. For instance, Laos and Malaysia, which both border Thailand—an established destination that is home to Bangkok, the world’s most visited city 20 Katherine LaGrave, “This is the world’s most visited city,” AFAR , January 31, 2024. —are up a respective 20 percent and 17 percent, respectively, in year-over-year international travel spending.

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic-travel spending. But some new locales are gaining traction.

Several other countries that have crafted thoughtful tourism demand generation strategies—such as Peru, the Philippines, Rwanda, and Vietnam—are also expected to reap benefits in the coming years. Vietnam logged a remarkable 40 percent increase in tourism spending in the five years before the pandemic. Postpandemic, it has rebounded in part by waiving visa requirements for European travelers (while indicating intent to offer similar exemptions in the future for Chinese and Indian travelers). 21 Ashvita Singh, “Vietnam looks to offer visa-free entry to Indians: India report,” Skift, November 20, 2023. The Philippines has made a concerted effort to shift its sun-and-beach branding toward a more well-rounded image, replacing its long-standing “It’s more fun in the Philippines” tourism slogan with “Love the Philippines.” Peru is highlighting less visited archeological sites while also marketing itself as a top-notch culinary destination through the promotion of Peruvian restaurants abroad. Rwanda is investing in infrastructure to become a major African transit hub, facilitated by Qatar Airways’ purchase of a 60 percent stake in the country’s major airport. 22 Dylan Cresswell, “Rwanda plots ambitious tourism recovery,” African Business , July 28, 2022. Rwanda has also successfully capitalized on sustainable tourism: by charging $1,500 per gorilla trekking permit, for instance, it has maximized revenue while reducing environmental impact.

Tourism players might consider taking some of these actions to lure tourists to less familiar destinations:

• Collaborate across the tourism ecosystem. Promotion is not solely the domain of destination marketing organizations. Accommodation, transportation, and experience providers can also play important roles. In Singapore, for instance, the luxury resort Marina Bay Sands partners extensively with Singapore Airlines and the Singapore Tourism Board to offer compelling tourism offerings. Past collaborations have included flight and stay packages built around culinary festivals. 23 “Singapore Tourism Board, Marina Bay Sands & UOB partner to enliven Marina Bay precinct,” Singapore Tourism Board news release, January 25, 2024.
• Use infrastructure linkage to promote new destinations. By extending route options, transportation providers can encourage visitors to create itineraries that combine familiar destinations with new attractions. In Asia, Thailand’s tourism authority has attempted to nudge visitors away from the most heavily trafficked parts of the country, such as Bangkok and Phuket, and toward less popular destinations.
• Deploy social media to reach different demographics. Innovative social media campaigns can help put a destination on the map. Australia launched its “Ruby the kangaroo” campaign in China to coincide with the return of postpandemic air capacity between the two places. A video adapted for Chinese context (with appropriate gestures and a hashtag in Mandarin) garnered more than 20 million views in a single day on one of China’s largest social media platforms. 24 Nicole Gong, “Can Ruby the kangaroo bring Chinese tourists hopping back to Australia?,” SBS, June 5, 2023.
• Embrace unknown status. “Off the beaten path” messaging can appeal to widely traveled tourists seeking fresh experiences. Saudi Arabia’s “#WhereInTheWorld” campaign promoted the country’s tourist spots by acknowledging that they are less familiar to travelers, using a series of images that compared these spots with better-known destinations.

As tourism stakeholders look to the future, they can take steps to ensure that they continue to delight existing travelers while also embracing new ones. Domestic and intraregional tourism remain major opportunities—catering to local tourists’ preferences while building infrastructure that makes travel more seamless within a region could help capture them. Creative collaboration among tourism stakeholders can help put lesser-known destinations on the map. Travel tides are shifting. Expertly navigating these currents could yield rich rewards.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Steffen Fuchs, Steffen Köpke, Steve Saxon, Sophia Wang, and Urs Binggeli for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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Adjunct professor and adjunct senior lecturer in tourism management, University of South Australia

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Freya Higgins-Desbiolles does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Right now, Australia is one of the top five tourist destinations in the world, a distinction the World Economic Forum says it shares with only the United States, France, Spain and Japan.

So important is tourism to Australia’s economy that the best estimates are it employs 655,000 people, 12 times as many as Australia’s coal industry .

And most of them are employed in regional locations , where jobs are scarce.

This month a report by the Zurich insurance group and the economic consultancy Mandala found half of Australia’s top 178 tourism assets were at risk from foreseeable climate change.

There are reasons to believe its findings underplay what we are facing.

All major airports, all national parks at risk

The Zurich-Mandala report examines the impact of a 2⁰C increase in global temperatures on only eight so-called “climate perils”: wind, flood, heat, storm, drought, bushfire, hail and rain.

It found that more than half of Australia’s top tourism assets faced a “significant risk from multiple perils” over the next 25 years, including all of Australia’s major airports.

Scheduling disruptions and the closure of airports in extreme weather conditions were set to have major impacts on the transport of goods, the transport of tourists and accessibility for emergency services.

All of Australia’s vineyards, national parks, scenic roads and railways were at risk.

Queensland had the highest number of sites facing significant risk (79%) followed by Western Australia (69%) and the Northern Territory (63%).

The report uses the impact of the 2019-20 black summer bushfires to estimate that 176,000 jobs might be at risk nationwide from predictable climate change, most of them outside of Australia’s capital cities.

Multiple and interacting threats

Here is why I am fearful that the report underplays the threat Australia’s tourism industry is facing.

There are many more threats to tourism from climate change than wind, flood, heat, storm, drought, bushfire, hail and rain.

One is the threat to biodiversity. Iconic animals and habitats are an important part of Australia’s brand.

Three billion animals were killed or displaced in the black summer bushfires.

The deaths caused loss and grief that risk indexes are incapable of capturing, but that nonetheless might make tourism less attractive.

And biodiversity helps in another way by protecting against bushfires , meaning that as species vanish, other risks to tourism climb in ways that aren’t captured in the assumptions used to evaluate risk.

Threats unexamined

What makes holiday locations unattractive is hard to measure, but is fed by extreme weather events.

Although temporary, the smoke and heat from the 2019-20 bushfires made parts of Sydney, Melbourne and Canberra almost unlivable for a while, damaging the reputations of Australian capital cities in a way that is probably ongoing .

Another curious omission, especially curious given that the report was prepared by an insurance company, is the damage extreme weather events do to the insurability of tourism assets.

The report is also silent on the effort to reduce carbon emissions on Australia’s desirability as an international destination.

For many tourists, air travel is the only way to get to Australia and it is likely to become more expensive and also less attractive as tourists try to reduce their carbon footprints .

Australia might increasingly become an Australian rather than an international destination.

Our biggest upcoming international promotion, the 2032 Brisbane Olympic Games, might lose a good deal of its shine, with Queensland tourism assets at the greatest risk from climate change, and those risks set to climb over time.

The higher the temperature the bigger the threats

Zurich and the Mandala consultancy are to be commended for identifying 178 top tourism assets and examining eight types of risk they face.

Their finding that just over half of them face serious threats from those risks is likely to be an underestimate because it excludes other risks and fails to examine the way in which some risks can intensify others.

And they will be an underestimate if global temperatures climb by more than 2⁰C.

The report says if global temperatures climb to 3⁰C above pre-industrial levels, 80% of the Australian sites it examined will face serious threats.

Australia could attempt to limit the increase in global temperatures by taking up the opportunity to co-host the 2026 UN climate talks with Pacific nations.

It would give us a shot at making a difference and drawing attention to our present status as one of the world’s top tourism destinations.

Read more: It's a big deal if Australia and the Pacific are chosen to host UN climate talks. Here's why

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Chapter 8: Visitor economy

• By 2040, an estimated 181 million Southeast Asians are predicted to travel overseas each year, up from 40.69 million outbound travellers in 2022. 163
• Australian businesses are well placed to capitalise on this major opportunity.
• The visitor economy contributes significantly to two-way trade, investment and people-to-people links between Australia and Southeast Asia, adding A$2.3 billion and A$4.5 billion to the respective economies in 2022 from visitor spend alone. 164
• Continued investment in marketing, aviation connectivity, infrastructure, visa processing, and training will facilitate increased two-way tourism.

Sector overview

There is a major opportunity to grow two-way tourism between Australia and Southeast Asia. Geographical proximity, people-to-people links, education, and unique cultural and natural environment offerings all reinforce the attractions of two-way travel. By 2040, 181 million Southeast Asians are expected to travel overseas each year, quadrupling current numbers. 165 Australia is well placed to capitalise on the projected growth in traveller numbers in Southeast Asia. Post-pandemic, travel proximity has become a more important factor for travellers, presenting an opportunity for Australia to take advantage of its location relative to competitor destinations. 166

Pre-pandemic, the visitor economy in Southeast Asia employed 42 million workers and contributed 12.1 per cent of the region's GDP. 167 In 2022, Southeast Asia was the most popular destination for Australian travellers overseas (28 per cent), contributing A$4.5 billion to Southeast Asian economies. 168 In its current Tourism Marketing Strategy 2021–2025, ASEAN identified Australia as its primary target market for inbound travellers, based on its proximity and high spending. 169

Tourism (including recreational travel and education-related travel) has traditionally been Australia's fourth-largest export, and a major employer across Australia with over 725,000 jobs. 170 In 2019, Southeast Asian visitor arrivals peaked at 1.5 million visitors, 171 and added an estimated A$4.2 billion to the Australian economy. 172 Numbers and income are recovering following the impact of the pandemic, and in 2022, Southeast Asian visitors contributed A$2.3 billion to the economy. 173 Australia is expected to capture 3.8 per cent (1.2 million visitors) of the total number of Southeast Asians travelling outside of Southeast Asia in 2023. 174

Education and those visiting friends and relatives have traditionally been strong drivers for travel from Southeast Asia to Australia. Pre-pandemic, 20 per cent of all Southeast Asian visitors to Australia were visiting international students, spending an estimated A$206 million. 175 Australian diaspora communities also attract a significant number of visits by friends and relatives.

While the attractiveness of Australia's tourism offering remains high, we face stiff competition to attract a greater proportion of the outbound Southeast Asian tourism market. Australia will need a targeted approach from both industry and government to realise the opportunity that greater tourism connections with Southeast Asia presents. The visitor economy's high concentration of SMEs in Australia (around 95 per cent) 176 means peak bodies and governments have a role to play in supporting product development, building industry capability and driving demand through marketing.

“Australian businesses should consider Southeast Asia because this region is one of the fastest-growing… We just need to know how to enter the market and personalise our approach to meet their needs.” (Dream Tours and Incentives Management)

High-income leisure and business travellers are another significant cohort of Southeast Asian travellers to attract to Australia, with 4.6 million Indonesian, Malaysian and Singaporean interested travellers in this category. 177 Nationals from these countries made up 72 per cent of Southeast Asian leisure travellers to Australia in 2022. 178

The natural environment will remain one of the key attractions for tourism in Australia and Southeast Asia and there is increasing demand for nature-based experiences. 179 Similarly, Australia's unique First Nations history will be a growing source of interest for tourists, as visitors increasingly value local authenticity, vibrant cultures and a sharing of knowledge (see Sand Dune Adventures case study). 180

Case study: Supporting visitors to 'connect to Country' through Sand Dune Adventures

Sand Dune Adventures (SDA) is owned and operated by the Worimi Local Aboriginal Land Council and is located at the Murrook Cultural Centre in Port Stephens, New South Wales. Its mission is to help visitors connect to Country' through a cultural quad-bike riding experience across the Southern Hemisphere's largest coastal moving sand mass with experienced local Aboriginal guides.

Commencing in 2008 with only eight quad bikes, SDA has trained numerous local Aboriginal community members and currently consists of 15 staff, all of whom are local community members, and 100 quad bikes. Among SDA's first international customers was a group from Malaysia, and their enthusiasm and connection to the experience encouraged SDA to explore further relationships with Southeast Asian businesses and customers. Despite tough years during the global pandemic, SDA is working with state and federal tourism bodies to rebuild and expand these connections, including by joining Tourism Australia's Australia Marketplace events in Southeast Asia.

CEO Andrew Smith credits this success in building connections with Southeast Asia to SDA's cultural governance of valuing relationships. It is about people, not a monetary exchange', he said. This is reflected by the numerous times returning customers bring back friends and relatives to the SDA experience. As one visitor said, I rode out and all I saw were sand dunes, but when I rode back in, I saw and understood Country.' This is the very same eye-opening cultural contact that SDA hopes to share with all who visit.

SDA also partners with and supports other initiatives of the Murrook Cultural Centre, including cultural education, landcare, and its conferencing and catering businesses, providing greater employment opportunities for the local community.

Australia's national strategy for the long-term sustainable growth of the visitor economy – THRIVE 2030: The Re-Imagined Visitor Economy – outlines the importance of ensuring tourism offerings are sustainable and climate-aware to meet demand. Some Southeast Asian visitors will also place importance on sustainable practices and will be willing to pay for such experiences. 181

Growth in visitor numbers also offers opportunities for two-way investment. Southeast Asian companies, such as Minor International Group from Thailand ( see case study ), are investing in Australian accommodation projects. The Tourism Investment Monitor 2021–22 values the current investment pipeline of tourism projects in Australia at A$44.3 billion across aviation, arts, recreation and business services, and accommodation. 182 Recent consultations on the International Diversification Strategy for the Visitor Economy revealed Southeast Asian travellers' preference for large family travel, which presents an opportunity for targeted infrastructure development. 183

There is also a need for culturally relevant infrastructure. Building broader industry awareness and capability, as well as expanding the number of multilingual guides and service staff will be required to support increased traveller numbers, traveller satisfaction and return visitation. The development of worship spaces, halal food options for Muslim travellers, and more signage in Southeast Asian languages are some examples. The Tourism Training Hub is working to build industry capability through its e-learning courses, including its Tourism Trade Ready and Muslim Host courses ( see Muslim Host training program case study ).

Australia and Southeast Asia can deepen existing collaboration on common issues, share knowledge of best practice tourism and benefit from each other's experiences. Australia and Vietnam, for example, are working together under the Australia–Vietnam Enhanced Economic Engagement Strategy to strengthen bilateral tourism cooperation and support increased two-way visitation. Australia's longstanding development cooperation programs in Southeast Asia are also supporting tourism projects, including skills training, to ensure the economic dividend from the visitor economy is shared.

Case study: Minor International Group's investments in Australia's visitor economy infrastructure

Thailand's Minor International Group (MINT) is one of the largest hospitality and leisure companies in Southeast Asia, with investments in 63 markets worldwide.

MINT's hotel group, Minor Hotels, first invested in Australia with the acquisition of Oaks Hotels and Resorts in 2011. They now employ around 8,000 Australians and have expanded their tourism investment portfolio to include Avani Residences in Adelaide, Melbourne and the Gold Coast. MINT's other investments in Australia include a majority stake in Australia's largest home-grown cafe group, The Coffee Club, which has grown to over 400 stores across eight countries. It has also invested in Australian coffee manufacturer Veneziano Roasters and now showcases Veneziano Roasters' coffee products across its Minor Hotel operations worldwide.

Minor Hotels' successful business model is built on a foundation of solid international experience, powered by local expertise,' said Chief Financial Officer Wayne Williams. The company combines its corporate expertise with the insights of its in-country partners to create products, services and experiences that meet the specific needs of each market. This approach has allowed Minor Hotels to adapt its business models to suit local cultures and overcome regulatory hurdles by harnessing the knowledge and skills of local partners. As a result, Minor Hotels has established a strong reputation for providing high-quality hospitality and lifestyle services in a variety of markets around the world.

During consultations on the strategy, some stakeholders noted that Australia's visa arrangements and processing times are inhibiting spontaneous leisure and business travel. A competitive and efficient system of tourism visas, with a stronger focus on electronic processing and accessibility, will be necessary to ensure Australia is competitive in attracting Southeast Asian visitors.

Australia and Southeast Asia's visitor economies will need a stable supply of skilled workers to deliver high-quality experiences. Feedback received in consultations suggested Australia's labour shortages were impacting the ability of tour operators to provide tourism experiences at scale. 184 Increasing the workforce and its capability will be vital for the future success of the visitor economy sector. Attracting students to study tourism and hospitality will be an important element for building the necessary workforce. Australia has education providers with expertise in visitor economy workforce development operating in Australia and Southeast Asia. Expanding opportunities for internships and professional exchanges as part of the vocational education experience in the visitor economy sector could enhance offerings for students.

Case study: Understanding growing markets and target audiences through the 'Muslim Host' training program

Tourism Australia and the Australian Tourism Export Council have supported industry with the development of the Tourism Training Hub, which provides industry training programs such as the Muslim Host' specialist training program.

This program worked with visitor economy SMEs to support their workforce to better understand the needs and interests of Muslim visitors and utilise relevant trade and marketing opportunities.

Dream Tours and Incentives Management (DTIM) founder Doddy Purwoko was central to the development of the Muslim Host' program. He has been an accredited inbound tour operator based in Melbourne for 20 years, assisting Southeast Asian travellers, both leisure and business, to arrange their Australian travel itineraries to suit their language, cultural and travel preferences. DTIM has expanded operations in Southeast Asia by setting up an office in Indonesia, which was key to building deeper relationships with travel agents in market. DTIM is also investing in an enhanced web presence to capitalise on interest by digital-savvy Southeast Asian customers.

The global pandemic was disruptive to the visitor economy, but Mr Purwoko sees great potential in the rebounding Southeast Asian market. He said, Australian businesses should consider Southeast Asia because this region is one of the fastest-growing [for] middle-income earners. Their geographical location is so close to Australia and the market size is huge with a lot of potential to do business with, in every sector. We just need to know how to enter the market and personalise our approach to meet their needs.'

DTIM has accessed support through the Export Market Development Grants program and built industry connections through trade shows, such as the Australian Tourism Exchange, which is hosted by Tourism Australia and provides direct exposure for Australian operators to buyers from a wide range of markets, including from Southeast Asia.

Pathways to 2040

In addition to the cross-cutting recommendations outlined in Chapter 2 , which will have a broad economic impact, this chapter has additional specific recommendations on the visitor economy.

Raise awareness

Given strong international competition and the need to grow awareness of Australia's diverse offerings, targeted investment in enhanced marketing will be key to increasing the share of Southeast Asian travellers to Australia. There are opportunities to attract high-income travellers by pitching our marketing efforts at industries with relevant appeal, while also working with industry to ensure visitors have a positive experience and promote Australia when they return home. Artistic, cultural (including sports) and business events are also effective at driving high-revenue visitation. 185 The Green and Gold Decade' of major sporting events, culminating in the Brisbane 2032 Olympics and Paralympics, will be a drawcard for additional visits.

Increased government-to-government links can support greater two-way visitor flows, facilitate investment in new enabling infrastructure, and support industry to undertake innovative product development. In Tourism Australia's efforts to boost tourism from India, in-market teams, advertising and engagement with airlines to increase direct aviation capacity have all assisted to deliver shifts in market share.

Travel companies play an important role in attracting leisure tourists and there are further opportunities to work with travel agents in Southeast Asia to raise awareness of Australia. Educating agents on how to sell Australia, extend travellers' length of stay and promote Australia over other destinations helps improve yield. Tourism Australia's Aussie Specialistprogram builds knowledge and skills of agents on Australia's product offerings, which could be further expanded and promoted in Southeast Asian markets. 186

Recommendation

• Expand tourism promotion and build industry capability to meet Southeast Asian demand.

Access to international tourism data is key to understanding current and future market trends. Data on Southeast Asia travel can be impacted by the quality and capability of in-country statistical agencies reporting outbound travel. There are opportunities for Australia to assist building data capability with its regional partners to improve traveller statistics across a broader spread of countries in Southeast Asia.

• Australian Government to identify opportunities to help build visitor economy data capability in key tourism authorities in the region.

Build capability

Businesses in the visitor economy will need to continue to adapt and be equipped with appropriately qualified staff to meet the challenges presented by rapidly changing technology and visitor preferences. Building on the success of the Muslim Host' program, industry–government collaborations could be expanded to ensure businesses understand Southeast Asian visitor markets and can cater to the differing needs of its international travellers to ensure a high-quality visitor experience.

• Government tourism agencies to partner with industry to expand industry-led capability-building initiatives for operators and their employees so that they better understand cultural preferences and expectations of travellers from Southeast Asia.

163 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished, accessed May 2023. Note: Outbound visitors refers to Australian resident returns.

164 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

165 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

166 Tourism Australia, Future of Global Tourism Demand , Tourism Australia, 2022, p. 38, accessed 7 June 2023.

167 Asian Development Bank, 'What Southeast Asian Countries Need to Do to Shift to Sustainable Tourism' , 2022, accessed 9 July 2023.

168 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

169 ASEAN Secretariat, ASEAN Tourism Marketing Strategy (ATMS) 2021–2025 , ASEAN, 2020, accessed 7 June 2023.

170 Australian Bureau of Statistics (ABS), Tourism Satellite Accounts: quarterly tourism labour statistics, Australia, experimental estimates , ABS website, March 2023, accessed 9 July 2023.

171 Visitors refers to short-term visitor arrivals.

172 Australian Bureau of Statistics (ABS), Overseas Arrivals Data and Tourism Research Australia, International Visitor Survey , ABS website, April 2023, accessed 9 July 2023. For the purposes of Chapter 8 – 'Visitor economy', international visitors include international students, regardless of their length of stay, reflecting their statistical likelihood to behave more like visitors rather than residents. In 2009, there were 736,600 visitors to Australia from Southeast Asia, spending A$2.3 billion.

173 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

174 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

175 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

176 Around 95 per cent of visitor economy businesses in Australia have fewer than 20 employees. Austrade, THRIVE 2030: The Re-Imagined Visitor Economy , Austrade, Australian Government, 2023, p. 5, accessed 7 June 2023.

177 A 'high-yield' traveller includes someone who travels long haul (out-of-region) on a regular basis and may have above average trip expenditure, higher likelihood to stay longer and higher likelihood to disperse further.

178 Tourism Research Australia, Data analysis provided to DFAT , Tourism Research Australia, Australian Government, 2023, unpublished.

179 Tourism Australia,  Future of Global Tourism Demand , Tourism Australia, 2022, accessed 7 June 2023.; ASEAN Secretariat, ASEAN Tourism Marketing Strategy (ATMS) 2021–2025 , ASEAN, 2020, accessed 7 June 2023.

180 Tourism Australia, Future of Global Tourism Demand , Tourism Australia, 2022, p. 38, accessed 7 June 2023.

181 Tourism Australia, Future of Global Tourism Demand , Tourism Australia, 2022, p. XII, accessed 7 June 2023.

182 Tourism Research Australia, Tourism Investment Monitor 2021–22 , Tourism Research Australia, Australian Government, 2023, accessed 7 June 2023.

183 Austrade, Discussion Paper: International Diversification Strategy for the Visitor Economy , Austrade, Australian Government, 2023; Tourism Australia, Future of Global Tourism Demand 2022 , Tourism Australia, 2022, pp. 163, 179, 183, 185, 187 and 189, accessed 7 June 2023.

184 Dream Tours and Incentives Management, stakeholder consultations, 5 June 2023.

185 Tourism Australia, Future of Global Tourism Demand , Tourism Australia, 2022, pp. 133–136, accessed 7 June 2023.

186 Tourism Australia, Aussie Specialist , Tourism Australia website, n.d., accessed 7 June 2023.

• Minister for Trade and Tourism
• Special Minister of State

Senator the Hon Don Farrell

• Media Releases
• Transcripts

Tourism investment is taking off

• Media release

Investor confidence is rising in the visitor economy, with new data out today showing the pipeline of investment in the tourism sector has grown to $44.3 billion.

Austrade's Tourism Research Australia (TRA) annual Tourism Investment Monitor shows investment in projects worth $20 million or more has grown by $1.5 billion in 2021-22. The number of projects in the pipeline has also grown by 9 per cent, from 225 to 244.

The 2021-22 pipeline data shows that the aviation sector has 14 projects valued at $16.7 billion, the accommodation sector has 152 projects valued at $11.5 billion, and the arts, recreation and business services sector (such as convention centres that host large visitor events) has 78 projects valued at $16.3 billion.

Australia's tourism sector has been through an exceptionally difficult period during the pandemic and, while global economic challenges continue, it's wonderful to see investor confidence returning.

New investment in the visitor economy will refresh and expand our range of world-class experiences, paving the way for visitor and spending growth in the years to come.

The data reveals a continuing trend in investment in smaller accommodation developments as visitors, particularly high-yield travellers, seek authenticity and intimacy in their experiences. First Nations culture, eco-resorts, and vineyards all feature in the 2021-22 investment list.

The Australian Government continues to support the tourism sector and Australia's national long-term strategy for the visitor economy, THRIVE 2030. A great example of this support is the $10 million Caravan Parks Grants Program that will see new and upgraded facilities at 111 caravan parks across the country.

Media enquiries

• Minister's office: 02 6277 7420
• DFAT Media Liaison: (02) 6261 1555

National Visitor Survey monthly snapshot

Domestic monthly snapshots estimate tourism activity.

From the January 2024 reference month, TRA will return to publishing National Visitor Survey data on a quarterly basis only, with the data for December 2023 being the final monthly release.

Increased appreciation of the value of tourism data is generating significant addition demands for TRA services. At the same time, there are ongoing challenges with maintaining high-quality high-frequency data based primarily on survey collections. Ensuring statistical reporting remains robust and fit for purpose into the future is a priority and requires investment in the assessment and development of potential new data sources for use in tourism statistics. Statistical outputs are therefore being reprioritised to balance the timeliness of publications and the quality of releases.

Additionally, the monthly domestic mobility data indicator will continue to be available, providing users a high quality and timely tourism movement measure less than 2 weeks after the reference period.

Domestic tourism December 2023

Tourism Research Australia’s (TRA’s) monthly snapshots estimate tourism activity in the related month. We also produce  quarterly  and  annual  summaries.

This report compares the month of December 2023 with December 2022 unless stated otherwise.

attach_money Overnight spend

$9.6 billion | Up 21% on December 2022

person Overnight trips

9.5 million | Up 5% on December 2022

clear_night Nights spend on trips

34.4 million | Up 7% on December 2022

Key results

December 2023 saw stronger domestic tourism results when compared to December 2022. Overnight spend, trips and nights away were up. 

Breakdown of results

In December 2023:

• spend was $9.6 billion. This was up 21% on December 2022.
• there were 9.5 million overnight trips. This was up 5% on December 2022.
• visitors spent 34.4 million nights away. This was up 7% on December 2022.

Early data shows domestic overnight trip rates for January 2024 were on par with trip rates for January 2023. Data for the first 3 weeks of February 2024 show stronger results when compared to February 2023.

The February 2024 trip rate shows 31.6% of NVS respondents interviewed in weeks 1, 2 and 3 took one or more overnight trips. The reference period for these interviews would be the preceding 28 days. The return date for some trips would be in January 2024.

The overnight trip estimate of 9.5 million for December 2023 refers to overnight trips returned from in that month.

Spend by expenditure item

Results for December 2023 show an increase in spend on all major tourism expenditure items.

In December 2023, Australians spent:

• $2.73 billion on accommodation
• $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 organised tours and entertainment.

Compared to December 2022, this was an increase in spend of:

• 28% on accommodation
• 17% on food and drink
• 21% on domestic airfares
• 7%  on petrol
• 8% on shopping
• 22% on organised tours and entertainment.

Interstate and intrastate travel

Interstate overnight trips, nights away and spend were stronger in December 2023 compared to December 2022. 

In December 2023, Australians:

• took 3.0 million interstate trips
• spent $5.1 billion.

Compared to December 2022, this was a:

• 14% increase in overnight trips
• 25% increase in spend.

Intrastate trips were stronger than December 2022.

• took 6.5 million intrastate trips
• spent $4.5 billion.

Compared to December 2022, this was a:

• 2% increase in overnight trips
• 16% increase in spend.

Domestic day trips

• took 17.3 million day trips
• spent $3.0 billion.

Compared to December 2022 this was a:

• 17% decrease in day trips
• 13% decrease in spend.

National Visitor Survey results monthly data tables

Monthly data for overnight and day travel by state and territory December 2023 compared to December 2022

Monthly data for overnight and day travel by state and territory December 2023 compared to December 2019

• Explore data from our international and national visitor surveys using TRA Online. Find out more on our  Services  page.
• Read the National Visitor Survey methodology .
• Find previous reports on our  Data and research  page.
• Learn about how we are using Domestic mobility data .

Contact TRA

mail   tourism.research@tra.gov.au

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The youth sector

Mount Charlotte, Kalgoorlie, Western Australia © Australia’s Golden Outback

The youth sector is vital to Australian tourism. 

The youth market contributes 27 per cent of all visitor arrivals to Australia and 45 per cent of all visitor spend. There were 2.4 million youth visitors to Australia in 2019 who spent $20 billion.

The Working Holiday Maker program allows young adults from eligible partner countries to work in Australia while having an extended holiday. Working holiday makers tend to stay longer, spend more and disperse more widely throughout the country than most other target segments. They have a higher than average length of stay and propensity to combine work, visiting friends and family, and holiday/leisure experiences.

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Acknowledgement of Country

We acknowledge the Traditional Aboriginal and Torres Strait Islander Owners of the land, sea and waters of the Australian continent, and recognise their custodianship of culture and Country for over 60,000 years.

*Disclaimer:  The information on this website is presented in good faith and on the basis that Tourism Australia, nor their agents or employees, are liable (whether by reason of error, omission, negligence, lack of care or otherwise) to any person for any damage or loss whatsoever which has occurred or may occur in relation to that person taking or not taking (as the case may be) action in respect of any statement, information or advice given in this website. Tourism Australia wishes to advise people of Aboriginal and Torres Strait Islander descent that this website may contain images of persons now deceased.