Australia Tourism Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2025-2034)

Australia Tourism Market Overview

Tourism significantly contributes billions to Australia’s GDP, underpinning sustained economic growth and attracting investment across sectors. The industry is a vital employment driver, generating diverse job opportunities in hospitality, transport, and retail, especially in regional markets. By decentralising economic activity beyond metropolitan hubs, tourism supports regional revitalisation. Additionally, international visitor spending strengthens Australia’s balance of payments, while rising demand fuels critical infrastructure investments in airports, public transport, and accommodation, enabling further Australia tourism market expansion. International holidaymakers spent AUD 12.0 billion in Australia in the year ending March 2025, a 24% increase year-on-year. This notable rise suggests higher discretionary spending and longer stays. The trend is boosting tourism-related sectors, particularly luxury travel, dining, and adventure tourism, and reinforces Australia’s status as a premium long-haul holiday destination.

Australia Tourism Market Growth

Tourism enhances cultural exchange, fostering global awareness and community enrichment which boosts destination appeal. This inflow directly benefits small and medium enterprises across hospitality, tours, and ancillary services, stimulating local economies. Moreover, tourism mitigates seasonal employment fluctuations, particularly in agricultural and regional sectors. The growth of major events and festivals attracts international audiences, elevating visitor expenditure and media visibility impacts the Australia tourism market revenue. Correspondingly, increased visitor arrivals promote aviation sector growth, supporting route development and airport capacity expansion. The global tourism body hosted its 24th Global Summit in Perth, Western Australia, in October. The sector was anticipated to sustain strong growth over the following decade, closely tracking the global economy’s expansion, with projections indicating it would surpass AUD 345 billion by 2034.

Key Trends and Developments

The Australia tourism market growth is boosted by rising international arrivals, luxury travel surge, adventure and experiential tourism growth, and digital transformation in booking and engagement.

July 2025

The Vanuatu Tourism Office launched the Adventure Passes campaign across Australia to reignite interest post the December 2024 earthquake. Developed with creative agency Apparent, the initiative promoted Vanuatu’s adventure, nature, and cultural experiences, targeting over 7 million Australians through digital, video, and social media, with strong emphasis on exclusive deals and regional accessibility.

May 2025

Qantas introduced major enhancements to its New Distribution Capability (NDC), including live chat, 24/7 technical support, and booking tools to streamline operations for travel agencies. These upgrades strengthened agency partnerships, improved service delivery, and positioned Qantas as a leader in digital distribution with the launch of its Premium NDC offering.

December 2024

Australia saw a surge in Chinese tourist interest following the introduction of a 10-year multiple-entry visa. Increased flight connectivity and strong diplomatic ties enhanced travel demand, with luxury tourism on the rise. China remained a key trade partner, supporting continued investment interest in Australia's tourism, agriculture, and food sectors.

September 2022

Intrepid Travel acquired a majority stake in Australian operator JOOB to strengthen its domestic DMC operations. The deal expanded Intrepid’s tour offerings to 96 across Australia, enhanced operational bases, and supported its vertical integration strategy. JOOB’s team and local expertise further bolstered Intrepid’s adventure travel capabilities and global growth ambitions.

Rising International Arrivals is Impacting the Australia Tourism Industry Revenue

Australia has experienced a significant rebound in international arrivals, driven by eased travel restrictions and increased global mobility. This resurgence is bolstering tourism revenue streams and encouraging investment in accommodation and transport infrastructure. Market report indicates that this growth is pivotal for recovering pre-pandemic economic contributions, enhancing employment in key tourism sectors, and strengthening Australia’s appeal as a preferred long-haul destination.

Luxury Travel Surge is Boosting the Demand of the Australia Tourism Market

Australia’s tourism sector is witnessing a marked increase in luxury travel demand, driven by high-net-worth international visitors seeking premium experiences. This trend supports the growth of boutique hotels, exclusive tours, and gourmet dining, enhancing the country’s competitive positioning as a luxury destination. Market data suggests that this segment not only generates higher per-visitor spend but also drives brand prestige, encouraging reinvestment in high-value tourism infrastructure and services.

Adventure and Experiential Tourism Growth is Influencing the Australia Tourism Market Dynamics and Trends

Experiential travel continues to expand, with tourists increasingly prioritising authentic and adventure-based activities such as diving, hiking, and wildlife encounters. This shift is influencing product development and marketing strategies, encouraging operators to innovate in eco-tourism and culturally immersive experiences. The trend aligns with global consumer preferences for sustainability and personal enrichment, driving longer stays and increased spend across regional and remote areas in Australia.

Digital Transformation in Booking and Engagement is Boosting the Australia Tourism Market Expansion

The adoption of digital platforms for trip planning, booking, and on-the-go engagement has accelerated, reshaping consumer behaviour. Advanced data analytics and personalised marketing enable tourism businesses to target niche segments effectively, enhancing customer acquisition and loyalty. This digital shift also facilitates seamless travel experiences and supports post-pandemic recovery by building traveller confidence through real-time updates and contactless services.

Australia Tourism Market Trends

Domestic tourism plays a crucial role by encouraging Australians to explore within, thereby strengthening internal connectivity and regional economies. This sector diversifies Australia’s economic base, reducing dependency on traditional industries like mining and agriculture through expanded service offerings, driving the growth of the Australia tourism market. International student arrivals, often linked to tourism, support education exports, adding a valuable revenue stream.  According to the Australian Government, in the March quarter of 2025, holiday travel accounted for 3.0 million interstate trips, representing 40% of all interstate travel, and 9.4 million intrastate trips, making up 44% of total intrastate travel. Additionally, evolving tourism demand accelerates digital transformation across booking and payment platforms, while the rise of eco-tourism fosters sustainability investments and promotes conservation efforts aligned with global trends.

Opportunities in the Australia Tourism Market

Tourism marketing significantly enhances Australia’s brand equity, positively influencing trade and foreign investment prospects, influencing the Australia tourism market dynamics and trends. The expanding luxury travel segment is driving demand for premium and bespoke experiences, reflecting changing consumer preferences. In the year ending March 2025, international visitor expenditure demonstrated robust growth across most Australian states and territories compared to the previous year. Tasmania led with the highest increase at 38%, followed by Western Australia at 28%, South Australia at 21%, and Victoria at 20%, reflecting strong market performance and growing tourism demand in these regions. The sector has demonstrated resilience and rapid recovery post-pandemic, highlighting its economic importance. Increased tourist activity boosts public transport utilisation and revenue, aiding transit system sustainability.

Market Restraints

The Australian tourism market faces several restraints that could hinder sustained growth. Key challenges include rising operational costs, limited regional infrastructure, and labour shortages across hospitality and transport sectors. Additionally, fluctuating international travel demand due to geopolitical tensions and economic uncertainty constrains inbound tourism.

Environmental concerns and regulatory restrictions around heritage sites and over-tourism hotspots also limit scalability. These constraints necessitate strategic investment, improved workforce planning, and sustainable tourism policies to ensure long-term viability and competitiveness in a global market context.

Australia Tourism Market Share

Market Analysis by Tourism Type

According to the Australia tourism market report, domestic tourism plays a crucial role in maintaining economic stability by protecting the sector from global shocks like pandemics or geopolitical unrest. It promotes the spread of visitor expenditure across regional areas, helping to sustain small businesses and preserve local jobs. Increased domestic travel enhances demand across transport, accommodation, and cultural attractions. With rising interest in local experiences and environmental consciousness, domestic tourism encourages sustainable practices and strengthens community resilience, making it a critical pillar for long-term industry sustainability and growth.

International tourism remains a significant economic pillar for Australia, serving as a high-value export contributor through elevated visitor spend and extended-stay travel patterns. It underpins employment across aviation, hospitality, and related service sectors, while strengthening foreign exchange inflows. Cultural engagement through inbound travel enhances Australia’s global positioning and soft power. Notably, short-term visitor arrivals reached 641,150 in April 2025, marking an 8.1% year-on-year increase, as per Australian Bureau of Statistics, reflecting sustained recovery and rising international demand. Long-haul markets are key to regional dispersal, with tourism growth strategically aligned to national objectives around economic diversification and bilateral trade development.

Market Insights by Travel Purpose

Business tourism significantly contributes to Australia’s economy by generating high-value expenditure through conferences, meetings, and corporate events. It drives demand for premium accommodation, transport, and hospitality services, stimulating urban centres and business hubs. This segment also promotes networking and knowledge exchange, fostering innovation and investment opportunities in the Australia tourism market. The total number of tourism-related businesses in Australia reached 360,202 in June 2024, marking a rise of 2,588 businesses or 0.7% compared to the 355,570 tourism enterprises recorded across the country in June 2023. The steady flow of business travellers helps stabilise tourism revenues year-round, balancing seasonal fluctuations common in leisure travel.

Leisure tourism is a major economic pillar in Australia, driving substantial revenue from holidaymakers seeking unique experiences. Visitor spending on accommodation, dining, entertainment, and local attractions boosts regional economies and supports small businesses, is driving the growth of the Australia tourism market. Leisure travellers often participate in cultural, nature-based, and adventure activities, encouraging sustainable tourism development. This segment enhances Australia’s global destination appeal, attracting repeat visits and reinforcing brand loyalty through positive travel experiences.

Australia Tourism Market Regional Insights

New South Wales Tourism Market Overview

New South Wales remains a key engine of growth within Australia’s tourism economy, underpinned by Sydney’s international profile and robust intrastate connectivity. According to the latest data, NSW recorded 97.3 million domestic visitors in the year ending December 2024, generating AUD 41.2 billion in expenditure, with overnight stays totalling 114.6 million nights. Ongoing investment in infrastructure, event programming, and destination marketing strategies continues to strengthen visitor economy outcomes and solidify NSW’s dominant market share.

Queensland Tourism Market Trends

Queensland’s tourism market is thriving due to its expanding regional appeal and growing international visitor numbers. Attractions like the Great Barrier Reef and Sunshine Coast drive leisure tourism while demand for outdoor and adventure experiences rises. Digital engagement strategies and improved flight connectivity further enhance regional dispersal and bolster revenue growth.

Western Australia Tourism Market Dynamics

Western Australia’s tourism performance is intrinsically tied to its natural capital and cyclical economic conditions, notably those linked to the mining sector. Elevated household income in resource-intensive regions supports increased discretionary travel, while international demand for authentic Indigenous experiences and remote landscapes continues to grow. Regional operators are leveraging digital platforms to expand market reach; however, infrastructure constraints persist. The state’s strategic vision, “to be recognised as a world-class destination that immerses people in its unique cultures, communities, and environment”, targets AUD 25 billion in annual visitor spend by 2033.

Victoria Tourism Market Drivers

Victoria leverages its cultural capital, driven by Melbourne’s creative sector and major events, to attract both domestic and international visitors. Growth in food, wine, arts and urban experiences delivers high-value spend. Strategic collaboration between state tourism agencies and local operators enhances product development, reinforcing brand identity and delivering premium travel experiences.

Australian Capital Territory Tourism Market Opportunities

The ACT, anchored by Canberra, presents robust potential for tourism development, driven by a concentrated base of cultural institutions, government activity, and international diplomacy. The presence of high-income professionals and a stable public sector underpins growth in education, meetings, and business tourism. In 2023, Canberra attracted 5.80 million visitors, a 4% increase from 2022, signalling a sustained recovery. Strategic opportunities exist in upscale accommodation, curated heritage tourism, and digital innovation, particularly through smart-city infrastructure, to capture emerging high-yield market segments.

Competitive Landscape

The Australia tourism market key players comprise a varied blend of domestic enterprises, regional travel specialists, and global service platforms. These stakeholders compete on experience-led products, digital engagement capabilities, dynamic pricing models, and sustainability positioning. Competitive intensity is highest in key urban and iconic tourist hubs, while emerging segments such as eco-tourism, adventure travel, and Indigenous cultural tourism offer valuable avenues for differentiation. To sustain competitive edge, players must prioritise strong brand equity, expansive distribution networks, and agility in responding to evolving traveller preferences.

Key Industry Players

AAT Kings Tours Pty Ltd: Founded in 1928 and headquartered in New South Wales, AAT Kings is a heritage coach tour operator across Australia and New Zealand. Known for guided, immersive travel experiences enriched by partnerships with Indigenous communities, the brand leverages over a century of expertise and sustainable tourism initiatives.

Ultimate Adventure Travel Pty Ltd: Established in 1991 and based in Sydney, Ultimate Adventure Travel specialises in gap year and group adventure tours for 18–35 year olds. The company delivers high value, culturally immersive experiences across Australia, New Zealand, and Southeast Asia through its digital-forward platform and local partnerships.

Insight Vacations Pty Limited: With its headquarters in New South Wales and over 40 years of experience, Insight Vacations crafts immersive, authentic guided journeys. The operator caters to experiential travellers seeking premium exploration of Australia and beyond, focusing on curated moments and deep cultural engagement delivered through carefully designed itineraries.

Australian Adventure Group Holdings Pty Ltd: Australian Adventure Group Holdings, based in Australia and operating multiple adventure tourism and technology brands, invests in innovative, sustainable travel experiences. The group supports regional SMEs, Indigenous partnerships, and digital solutions to foster cross-cultural understanding and future oriented growth across Australia’s adventure tourism sector.

Other key players in the Australia tourism market report are Exodus Travels Ltd., Intrepid Group Pty Limited, INTRO Travel, Australian Wildlife Adventures Pty Ltd., and Scenic, among others.