This country just overtook Indonesia as Australians' top Asian destination and #2 spot overall

Fewer Aussies jetted off abroad in February 2026, although international travel remains robust, according to the latest Australian Bureau of Statistics (ABS) data. 

ABS data on outbound travel reveals that a total of 891,460 short-term resident returns were recorded in February 2026, a decrease of 31,890 (-3.5%) compared to the same month in 2025. This follows several months of healthy gains for international travel, culminating in an 8 per cent year-on-year increase in January 2026. 

While a drop in travel may seem concerning – especially given that this occurred before the outbreak of the US-Iran conflict and the fallout from the war, like airspace closures – it’s important to note that the number of overseas trips taken by Aussies in the month was still nearly 20 per cent (+19.5%) higher than then-record pre-pandemic levels in February 2019.

Winners + losers

As for where we travelled during the month, New Zealand was still our favourite destination, with 113,460 trips, accounting for nearly 13 per cent of all resident returns. 

However, for the first time, Japan was our most popular Asian destination, with 103,360 trips, edging out Indonesia with 101,630. The result continues Japan’s rise among Aussie international travellers. 

Following the top three were India (88,680 trips), China (48,710) and Thailand (43,770). Vietnam, USA, Philippines and Malaysia rounded out the top 10 most visited destinations. 

But the real surprises are the relative movements among countries. 

While Japan (+6.2%), India (+5.7%) and New Zealand (1.9%) saw healthy y-o-y growth, other destinations wobbled. 

After experiencing a whopping rise in January, China saw a massive drop in February 2026, down more than 30 per cent – and this occurred during the Lunar New Year period, when many Chinese expats return to China.

Malaysia (-23%), Singapore (-16%), Vietnam (-12%) and Thailand (-5%) also saw big yearly declines, proving that while Asia is on the rise, long-term, it hasn’t all been one-way traffic.

Yet again, US-bound travel saw a big decrease in visitation, with a nearly double-digit decline (-9.7%) for the month.

According to data from the US National Travel and Tourism Office (NTTO) – part of the International Trade Administration (ITA) – 131,156 Australians travelled to the States in January and February 2026, compared to 142,008 arrivals in the corresponding period in 2025. But it wasn’t all bad news for America – read more about that here.

Big picture 

While international travel fell slightly in February, total outbound travel for the 12 months to February 2026 grew by 6.2 per cent to 12.6 million trips. 

According to the Australian Travel Industry Association’s (ATIA) Travel Trends Report April 2026, Vietnam (+16.1%) grew the most over the 12-month period, followed by China (+15.9%) and Japan (+15.6%). 

At the other end of the scale, the US saw a nearly 5 per cent decline (-4.8%) over the same period, experiencing negative growth in nearly every month. 

Using ABS and Department of Infrastructure, Transport and Regional Development data, the ATIA report also reveals that international travel grew across every month except for February, with May (+20.1%) seeing the biggest swing.

“Australians made more than 12.6 million overseas trips in the year to February. That is a sector operating at full pace. The opportunity for travel professionals is real, the demand is there, and the data tells you exactly where to focus,” ATIA CEO Dean Long said.

“[Australians] are increasingly choosing Asia over America, and the trend is clear across multiple months and multiple destinations.

“Vietnam, Japan and China are all growing strongly. The USA is not. This data covers the period before the tariff escalation in April, so the next report will tell us a great deal about whether that has accelerated the shift.”

Inbound increase

In inbound travel, Australia saw nearly double-digit growth (+9.5%) over the 12 months to February 2026, welcoming 9,099,540 international travellers. China was the fastest-growing market for the year, up 21.3 per cent (to 1.1 million visitors) and a massive 79.5% in February alone.

New Zealand remains Australia’s biggest source market (1.44 million trips).

Remarkably, February saw a nearly 20 per cent (+19.7%) y-o-y surge in overall visitation.

“The China inbound result is extraordinary. A 79.5% surge in February from our second-largest inbound market is a major economic signal for the travel industry,” Long said.

International travel: Top 10 destination countries

KARRYON UNPACKS: International travel demand is holding, but where Aussies go is shifting fast. For travel advisors, it’s less about volume and more about reading the room – Asia’s up, the US is losing ground.