Australia Tourism Market Size, Share, Growth Analysis Report and Forecast Trends 2024-2032

Australia Tourism Market Trends

The Australian tourism market expansion is being fuelled by the shift towards wellness tourism. Post the COVID-19 pandemic, many New Zealanders and Australians have begun prioritising relaxation, disconnection from internet devices, and improving physical and mental well-being through eco-tourism during leisure travel. As per Luxury Escapes, a leading Australian travel company, nearly 36% of all Australians are eager to undertake wellness tourism journeys to gain new experiences. Wellness centres and hot springs have witnessed a year-on-year growth of 19% in 2024 as the demand for facial packages and massages has soared internally.

Women-only retreats have emerged as a major source of revenue for companies engaged in the travel and hospitality industry. Resorts providing holistic health and diagnostic assessments have garnered significant consumer appeal. Tour packages focusing on immersive educational experiences that reduce burnout and leverage technology for improving energy and mood levels are expected to drive the market growth over the forecast period.

Australia Tourism Market Growth

The Australia tourism market is expected to benefit from the government’s Sports 2030 programme. Nearly 14 million Australians participate in different sports activities annually and the small nation has set global benchmarks for hosting international games, including the Olympics. Australia is expected to host 30 major sporting events in the next decade, including the Commonwealth Games, Australian Open Tennis, Formula One, the Rugby World Cups, and the UCI Road Cycling World Championship, among others. This is expected to increase the Australia tourism market revenue in the forecast period.

Major market players provide pilgrimage travel packages to the masses. With the worldwide resurgence in spirituality and religion and the growing consumer awareness regarding the link between spirituality and mental health, major companies are expecting a surge in the number of travellers bound for pilgrimage sites, such as the St. Mary’s Cathedral, Mary Mackillop Center, and Santa Teressa Mission, among others.

Australia Tourism Market Insights

• In 2024, the Big Red Group witnessed a 228.4% year-on-year increase in bookings related to wellness tourism.
• Tourists’ reservations for Polynesian spas in Brisbane recorded an 855% y-o-y increase in 2024.
• Australia’s tourism industry employs nearly 655,000 people, nearly 12 times greater than its coal industry.

Industry News

September 2022

Intrepid Group Pty Limited completed the acquisition of Jump Out Of Bed (JOOB), a Perth-based adventure travel company, to add 30 extra tours to its additional portfolio of tour offerings across Australia.

October 2021

Intrepid Group Pty Limited entered into a 50/50 joint venture with Drifter Hospitality Group to establish a chain of sustainable and premium-hybrid hotels across major cities located in Australia and New Zealand.

Australia Tourism Market Drivers

Rising Demand for Adventure Travel Among Women

As per the Adventure Travel Trade Association, numerous travel agencies are designing tour packages for women travelling solo. Some youth travel brands in Australia report that 62% of their booking come from women travelling solo. These individuals demand active and sustainable experiences from accommodation to food and beverages, besides cultural tourism. Major travel agencies are focusing on improving operational transparency to enhance their appeal among this consumer base while implementing unique marketing strategies that align with their values and self-concept.

Increasing Reliance on Generative AI Tools

Generative AI (Gen-AI) applications, including ChatGPT, are being utilised by numerous travel agencies to improve their marketing strategies. Gen AI applications enable users to create texts, images, videos, and other different types of content. This empowers them to deliver personalised advertisements to their customers. AI chatbots are also inspiring potential customers to explore different travel destinations and find what suits them best. It can be further used to make travel more convenient and accessible. This is expected to bolster the Australia tourism market development over the forecast period.

Opportunities in the Australia Tourism Market

Rising appeal for offbeat destinations

Many Australian consumers are seeking off-the-road/offbeat destinations for their next travelling experience. This can be attributed to the increased consumer preference for privacy and exploring a wide range of places at low prices. Offbeat travel destinations provide people an opportunity to connect with other local people, which expands their cross-cultural horizons and satisfies their craving for emotional connection. With the growing number of small-children families vacationing away from urban cities, offbeat destinations are an attractive place to relax and rewind with no risk of harm to their children. These locations are also located in places with rich natural beauty and most often uncrowded. The rising demand for personal travelling experiences is also a key factor driving the Australia tourism market growth.

Market Restraints

Over 50% of the assets belonging to Australia’s tourism industry are at risk from the adverse impacts of climate change. This includes several sites in Queensland (79%), Western Australia (69%), and the Northern Territory (63%). In a scenario where global temperature rises to 3 degrees above the pre-industrial levels, the Australia tourism industry is expected to receive a major setback. Nearly 3 billion animals were killed during the black summer bushfires, thereby causing major harm to the local biodiversity. Australia is expected to initiate UN Climate talks with its neighbouring Asia Pacific countries to mitigate the impact of climate change, which is expected to present favourable market opportunities for the growth of the market. This includes the introduction of climate-adaptive hotels that rely on renewable energy sources (such as solar and wind) and generate comparatively lower amounts of carbon emissions, thereby driving market growth.

Australia Tourism Industry Segmentation

“Australia Tourism Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Tourism Type

• Domestic Tourism
• International Tourism

Market Breakup by Travel Days

• Less Than 7 Days
• Between 7 – 15 Days
• More Than 15 days

Market Breakup by Travel Purpose

• Business Spending
• Leisure Spending
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Tourism Market Share

By Tourism Type Analysis

Domestic tourism accounts for a major portion of the market share. In 2023, annual expenditure by domestic tourists culminated in $108.1 billion, recording a year-on-year growth of 37% ($29.4 billion). The total expenditure on interstate and intrastate trips surged by 42% and 34% respectively, amounting to $49.4 billion and $58.7 billion. The total number of interstate and intrastate trips also surged by 2% and 5% respectively. As per the Australia tourism market analysis, the number of tourist overnight trips towards regional Australia reached 72.9 million, recording a year-on-year growth of 4%. The expenditure on such trips also reached $59 billion, recording a 45% year-on-year growth.

In 2023-24, Australia welcomed 7.4 million overseas tourists, with New Zealand (1.2 million), China (746,000), the United States of America (670,000), the United Kingdom (581,000), and India (395,000) being its topmost source countries. The primary reasons for travel were vacations, business meetings, and pursuing a higher education degree.

By Travel Days Analysis

The emergence of hybrid work models has fuelled the demand for business-leisure trips in Australia. The Global Business Travel Association suggests that 62% more travellers have begun to blend business and pleasure from 2019 levels. The Corporate Traveller suggests that Australians spend an average of 6 nights away on business-cum-leisure trips, which is nearly double of 3.5 nights (the global average). During March-October 2023, the average length of business trips in Australia surged by nearly 5%, indicating increasing demand for travel days for less than 7 days.

The emergence of Japan as the most popular tourist destination for Australians is also expected to drive the demand for weekly/monthly holiday packages. The rising appeal of Indonesia, Singapore, Thailand, and Vietnam as a travel destination among Australians is expected to further shape the Australia tourism market trends and dynamics.

By Travel Purpose Analysis

Leisure spending is expected to account for a major portion of the Australia tourism market share. Between March quarter 2020-2023, there was a 67% increase in the expenditure on holidays, which reached $6.6 billion. The total expenditure on trips spent visiting close relatives and friends also surged by 45%, reaching $1.7 billion.

In March 2023, the total expenditure on airfares, food and drinks, and accommodation surged drastically, reaching $3.2 billion, $7.8 billion, and $8.4 billion respectively. This was a year-on-year growth of 40% ($903 million), 48% (2.5 billion), and 71% ($3.5 billion) respectively. This indicates a thriving market for the travel and tourism industry for different purposes.

During 2023-24, Australia witnessed a surge of 74% in total business trips from 2019 levels, which reached 742,000. The total expenditure incurred by tourists on these travels surged by 93% from 2019 to reach $2.1 billion.

Australia Tourism Market Regional Insights

The Australia tourism market is thriving, with each region providing unique sites of attractions for visitors and contributing immensely to the growth of the tourism industry. New South Wales (NSW) attracts the highest number of visitors due to the presence of iconic attractions such as the Harbour Bridge and Sydney’s Opera House, besides coastal destinations such as Bondi Beach. Queensland follows closely, due to the widespread global appeal for tropical rainforests, the Great Barrier Reef, and the Gold Coast.

Victoria is popular for food tourism, events and arts, while its wineries and coastal routes such as the Great Ocean Road attract numerous people from across the world. Western Australia is a hub for nature lovers and wildlife enthusiasts, which is popular for the Kimberley and Ningaloo Reef.

Tasmania and South Australia offer opportunities for eco-tourism, wilderness exploration, and food and wine tours. Adelaide’s wineries and Tasmania’s wildlife conservation parks are major tourist attractions. This regional diversity of Australia cements its position as a leading destination for holidays and wildlife exploration, thereby leading to the market growth.

Australia Tourism Market Analysis

The Northern Territory of Australia provides a rich cultural experience to travellers through its iconic natural wonders and outback experiences. It is home to the Uluru and Kakadu National Parks, which are major sites of attraction for nature lovers and those seeking a spiritual retreat. While Uluru is a major UNESCO World Heritage Site, Kakadu boasts of ancient rock art, wildlife, and wetlands which serves as a major offbeat destination for international tourists from Australia and Europe.

The increasing demand for immersive cultural experiences has favourably driven the Australia tourism market expansion. This has prompted major companies to introduce guided tours that provide information about Aboriginal arts and offer critical insights into the nation’s oldest living culture.

Competitive Landscape

AAT Kings Tours Pty Ltd. is Australia’s leading provider of guided holiday tour packages which was founded in the 1920s. It was awarded as a major tour and transport operator during the Brolga Awards ceremony in 2023. It provides short breaks and day tours across numerous sites in Australia and New Zealand, including Adelaide, Brisbane, and Perth, among others.

Ultimate Adventure Travel Pty Ltd. was established in 1991 and is headquartered in Sydney. It is engaged in providing working holidays/backpack holidays/short breaks for travellers aged between 18-30 years.

Insight Vacations Pty Limited is headquartered in New South Wales. It is engaged in providing guided tours across the world, which encompasses premium dining and service experiences.

Exodus Travels Ltd. was founded in 1974 and is headquartered in Surbiton, England. It has provided over 500 holidays to different travellers located in 90 countries worldwide and boasts a positive consumer rating of 97%.

Key Industry Players

Other key players in the Australia tourism market report include Australian Adventure Group Holdings Pty Ltd., Intrepid Group Pty Limited, INTRO Travel, Australian Wildlife Adventures Pty Ltd., and Scenic, among others.

Recent Developments

November 2022

Australian Adventure Group Holdings Pty Ltd (AAGH) completed the acquisition of a varied suite of assets belonging to the Imperium Tourism Holdings Pty Ltd. and Discovery Adventure Group Holdings Pty Ltd. This gives it the ownership of popular Australian tour brands (Adventure Tours Australia and Outback Tour Services, among others) and travel technology brands (Adventium Technology and Website Travel), apart from travel agency brands (Peterpans Travel, Backpackers World, among others).

June 2020

Insight Vacations Pty Limited launched the ‘Local Escapes’ collection of tours across South Australia, Western Australia, Tasmania, and some parts of New Zealand for a booking amount of $99. This included a 30-day refund option and utmost consideration for consumer hygiene and safety.