Australian tourism businesses grew to more than 360,000 in 2025 with one in eight now linked to the visitor economy, highlighting steady but slower growth compared to the overall national business landscape.
Australia’s tourism sector continues to expand with more than 360,000 tourism-related businesses operating as of June 2025, according to new data from Tourism Research Australia (TRA).
The latest annual report shows tourism-related enterprises now account for 13.2 per cent of all Australian businesses – around one in eight – underscoring the sector’s significant contribution to the national economy.
Growth in Australian tourism businesses has increased by eight per cent over the past five years. However, this is below the 18 per cent growth recorded across the overall Australian business landscape since 2020.
More than half (57 per cent) of tourism-related businesses are directly tied to visitor services such as accommodation providers.
Vehicle hire has emerged as the fastest-growing segment, increasing by 65 per cent over five years, reflecting changing traveller preferences and demand for flexible transport options.
Two-thirds of tourism-related businesses sit within retail trade or cafes, restaurants and takeaway services, rmaking these two industries important contributors to the visitor economy.
Accommodation businesses account for four per cent of the sector, totalling around 14,000 enterprises, representing a slight decline of two per cent since 2020. Travel agencies make up around 9,000 businesses (2%) with numbers remaining stable over the same period.
The data highlights the dominance of small businesses within the tourism sector with 95 per cent employing fewer than 20 staff.
Regional Australia accounts for 30 per cent of tourism-related businesses, supporting rural and regional economies.
Major urban centres still lead in overall numbers with capital cities and the Gold Coast home to approximately 254,000 tourism-related enterprises.
NSW, Queensland and Victoria collectively account for 82 per cent of all tourism-related businesses nationwide.
Despite overall growth, business survival rates in the tourism sector still lag behind the national average.
Of the 345,000 tourism-related businesses operating in June 2021, around 194,000 remained active in June 2025 – a survival rate of 56 per cent, compared to 63 per cent across all Australian businesses.
Clubs, pubs, taverns and bars recorded the highest four-year survival rate at 70 per cent, while taxi services experienced the lowest at 44 per cent.
TRA attributes earlier growth between 2020 and 2022 to strong domestic travel demand during Australia’s international border closures.
Since borders reopened, outbound international travel has rebounded quickly, while domestic overnight travel has stabilised with tourism business growth also levelling off between 2022 and 2025.
KARRYON UNPACKS: The increase in Australian tourism businesses reinforces the sector’s economic importance, but slower growth and lower survival rates highlight the need for sustainable strategies and advisor support across the small-business-driven visitor economy.
