Tourism industry analysis highlights Australian tourism recovery still has a long way to go. An annual snapshot shows inbound visitor numbers hovering at 86 per cent of 2019 levels despite open borders for two years as experts call for more investment to ignite international interest.
The latest Tourism Research Australia (TRA) International Visitor Survey (IVS) data found international travel for leisure, business, visiting friends and relatives (VFR) and education purposes have still not reached pre-pandemic levels.
International visitors made 7.5 million trips to Australia for the year to September 2024, representing 86 per cent of 2019 levels.
Holiday visitor spending is up four per cent on pre-pandemic levels, however, the small increase does not offset inflation or the growth the industry has missed over the past five years.
While there was an uptick in VFR travel (34% in 2024 vs 30% in 2019), international leisure travellers were still down four per cent for the year ending September 2024 against the same period in 2019.
With a surge in Chinese carriers resuming services, Australia hopes to increase visitation and surpass 2019 flights from this key international market in 2025.
Impacts to the economy and regional areas
Australian Tourism Industry Council (ATIC) Chair Evan Hall said these missing tourists would have spent an additional $4.7 billion in the Australian economy and sustained 30,700 jobs.
“As the economy stagnates it is critical the Australian Government reinvests in marketing to recover our international holiday visitors, particularly to regional destinations. While international holiday visitors remain down, Australians are [also] holidaying outside of Australia in record numbers,” he said.
The road to Australian tourism recovery
Australian Tourism Export Council (ATEC) Managing Director Peter Shelley said while holiday visitation remains stable, the anticipated growth in international arrivals is yet to occur.
“Australian tourism recovery is progressing, but it remains uneven, creating a patchwork of outcomes across the country, highlighting the need for targeted support to ensure all parts of our sector can benefit from the recovery,” he said.
ATEC has identified the key barriers to Australian tourism recovery, including ongoing workforce shortages (particularly in regional areas), reduced air connectivity to iconic destinations, such as Uluru and Kangaroo Island, and rising operational costs affecting profitability across the sector.
Shelley said a collaborative industry approach and increased investment will help inbound tourism over the line to full recovery and address global challenges.
“Australia’s tourism industry has proven its resilience but the road to full recovery is long. By addressing these challenges collaboratively and ensuring targeted investment in the upcoming Federal Budget, we can position Australia to achieve the sustainable export growth the Government has projected in its THRIVE 2030 strategy.”
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