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Steep slide for US travel as shorter-haul continues sharp rise to the top

As the United States announces the end to its flight reduction mandate - a move that saw thousands of flights cancelled across the country - fresh data shows many Australians continue to shun the US in favour of short-haul destinations, particularly in Asia. 

As the United States announces the end to its flight reduction mandate – a move that saw thousands of flights cancelled across the country – fresh data shows many Australians continue to shun the US in favour of short-haul destinations, particularly in Asia. 

Recently released Australian Bureau of Statistics (ABS) figures reveal that US-bound travel fell by a significant 13% year-on-year in September. 

The ABS data shows that there were 58,610 short-term resident returns from the US in September 2025, compared to 67,100 in the same month last year. Conversely, travel to various Asian destinations continues to rise sharply. 

Leading the way is Japan, from where 58,090 Australians returned home in September, compared to 50,070 in the corresponding period in 2024. This equates to a robust 16% rise. 

Elsewhere, Vietnam saw around 11% growth in Aussie visitation (35,040 short-term, resident returns to Australia) while China experienced an almost 9% increase (49,240 returns). 

Ha Giang rice terraces near Sapa in the North of Vietnam ©Getty/Gilsdenski
Ha Giang rice terraces near Sapa in the North of Vietnam. (Image Getty/Gilsdenski)

Among the other top 10 most visited countries for Australians, Indonesia, New Zealand and Italy also saw small gains, while the UK and Fiji remained static. 

Interestingly, Thailand experienced the second-largest decline in Australian visitation after the US, with a nearly 9% drop in visits, which shows that not everywhere in Asia is winning right now.

Overall, the three leading destination countries residents returned from were Indonesia (159,420 trips), New Zealand (113,870) and the UK (67,330).

According to the Australian Travel Industry Association (ATIA), rising airfares are likely shaping where Aussies go, with Japan, Vietnam and China pulling ahead as the value-friendly favourites.

Takayama town, Hida, Gifu, Japan
Japan continues to boom among Aussies.

In its most recent ATIA Travel Trends Report, the association states that outbound travel continued its upward trajectory, increasing from 11.3 million to 12.4 million trips over the 12-month period to September 2025. This was led by growth of 19% and 20% in February and May, respectively.

The report found that three in five (60%) trips over that period were for holidays, with VFR (visiting friends and relatives) travel accounting for one in four trips. It also reported that international aviation activity strengthened, growing by around 9.5% y-o-y (for August 2025), while domestic air supply grew by between three and six per cent.

Inbound travel, for the year ending September 2025, increased from 8.1 million to a healthy 8.6 million. 

ATIA CEO Dean Long said, “Australians are clearly feeling cost pressures on long-haul travel”.

“This highlights the need for greater competition and better pricing across key routes,” he added.

“Outbound travel continues to reflect the preferences of Australian travellers who are increasingly seeking value, cultural experiences and proximity.

“The strong growth in travel to Japan, China and other parts of Asia shows how quickly consumer sentiment responds to affordability and improved airline capacity.”