The number of travel and tourism-related enterprises in Australia has hit a record high, but survival rates remain lower than the national average for businesses, according to new data from Tourism Research Australia (TRA).
As of June 2024, Australia had 360,202 travel and tourism-related businesses, an increase of 2,588 (0.7 per cent) over the previous year.
Data shows the industry now accounts for nearly one in seven (13.5 per cent) Australian businesses and employs around 675,500 people.
According to TRA, most tourism businesses are small operators, with the overwhelming majority (95 per cent) employing fewer than 20 people, and nearly half (49 per cent) generating under $200,000 in turnover.
Interestingly, while 70 per cent (approximately 253,000) of these enterprises are in capital cities or the Gold Coast, regional Australia has seen growth and is now home to about 30 per cent of all tourism businesses (up from 28 per cent in 2023).
“With 360,000 tourism businesses across the country, the vital importance of this sector to Australia is undeniable,” Federal Trade and Tourism Minister Don Farrell said.
“Around 30 per cent of Australia’s tourism businesses are in regional areas, which help support communities in every corner of the country.
“I’m pleased to see the number of businesses reach record highs, as each of these businesses creates jobs and helps the sector thrive.”
It’s not all good news for the sector, however. Despite growth, long-term survival has been a challenge.
Of the 333,000 tourism businesses operating in June 2020, only around 192,000 (58 per cent) remained in 2024 – compared to 64 per cent across all Aussie industries.
Travel agencies and tour operators struggled with a 57 per cent survival rate, meaning nearly half of those businesses folded, while taxi transport businesses fared worst at 40 per cent.
Clubs, pubs and bars and accommodation businesses fared much better, with survival rates of 71 per cent and 66 per cent respectively, while motor-vehicle hiring businesses bucked the trend, growing by 63 per cent over the period.
In December 2024, a tourism industry analysis highlighted that Australian tourism recovery still had a long way to go. An annual snapshot at the time showed inbound visitor numbers hovering at 86 per cent of 2019 levels despite open borders for two years.
This week, Tourism Australia unveiled a new campaign called Experience Australia, a TV travel series voiced by Tourism Australia ambassador and actor Rachel Griffiths that will broadcast internationally in 58 countries.
For the full Tourism Research Australia report, click here.
