Australian Tourism Export Council’s latest ATEC inbound tourism data highlights strong interest in Australia, but shows a dip in forward bookings as price sensitivity and global uncertainty weigh on conversion rates.
The latest Inbound Tourism Pulse member data and sentiment surveys show strong inquiry from key markets, including the US, China, India and South-East Asia, in line with 2025 TRA research.
However, almost two-thirds (64%) of Australian tourism exporters expect demand to slow from July 2026.
The ATEC inbound tourism data shows traveller uncertainty is the biggest emerging risk, cited by 56 per cent of operators, while broader global pressures are also weighing on sentiment.
Cost-of-living pressures in key markets (35%), reduced confidence in international travel (19%) and challenges converting demand (16%) were identified as major concerns heading into the peak season.
Fuel uncertainty and rising aviation fares are adding further pressure with 65 per cent of operators concerned about future fuel supply and pricing, while flight costs continue to affect Australia’s competitiveness.
ATEC Managing Director Peter Shelley said the ATEC inbound tourism data highlights a shift in market conditions, although operators remain confident in their ability to deliver despite increasing pressure.
“This is not a collapse in demand; people still want to come to Australia, but they are taking longer to commit and are more sensitive to price and global conditions driven by the Middle East conflict,” he said.
“That hesitation is now flowing through to forward bookings, and that’s where our members are starting to see less certainty.
“Operators are working hard to keep bookings moving but are absorbing increasing operational costs, adjusting schedules and maintaining relationships with their international partners to protect demand.”
Shelley said the ATEC inbound tourism data findings reinforce that conversion, competitiveness and global affordability are shaping current market conditions, rather than demand alone.
Industry respondents identified aviation pricing, government support and sustained international marketing as the most important levers to support inbound recovery.
“With global competition for the international visitor dollar intense, staying visible in market and being competitive on price will be critical as the industry manages its way through this period of global uncertainty,” he said.
“That makes sustained investment in international marketing, including Tourism Australia, more important than ever.”
KARRYON UNPACKS: The ATEC inbound tourism data shows Australia’s appeal is holding, but conversion is getting harder, making price, visibility and partner confidence critical to protecting the next wave of international bookings.
