Tourism industry recovery trends in Australia show a sector that has not only climbed back from pandemic lows but is now pushing toward record levels of visitor spend, jobs, and economic contribution.
National and international forecasts point to travel and tourism adding more to Australia’s economy in 2025 and beyond than it did before 2020, even as some inbound markets like China remain in a slower recovery phase. At the same time, operators are dealing with workforce shortages, higher costs, and changing traveller behaviour that are reshaping how tourism is planned and delivered.
How Far Has Australia’s Tourism Industry Recovered?
By 2024–2025, most core tourism indicators in Australia had either recovered to or surpassed pre‑pandemic levels, particularly on the spending side. International bodies and domestic agencies now describe Australia as firmly “in recovery” and entering a new growth cycle.
- The World Travel & Tourism Council (WTTC) projects that Australia’s travel and tourism sector will contribute around 314.4 billion AUD to the national economy in 2025, almost one‑third above pre‑pandemic levels and equivalent to roughly 11.4% of GDP. This would be the highest contribution the sector has ever made to Australia’s economy.
- WTTC also expects the sector to support about 1.7 million jobs in 2025, nearly 114,000 more than in 2024, meaning that over 11.5% of the country’s workforce will be employed in travel and tourism.
- Tourism analytics sources estimate that Australia welcomed more than 7.18 million international visitors in 2023, up 94.6% on 2022 and broadly back to pre‑pandemic volumes. Both international and domestic tourism are described as “well into recovery”, with total trips and spend rising strongly.
- Recent tourism forecasts indicate that total visitor spend in Australia reached a record 180.6 billion AUD in 2024 and is forecast to climb to around 191.6 billion AUD in 2025, representing roughly 6% annual growth.
Tourism Research Australia’s Tourism forecasts for Australia 2021–2026 echo this story, predicting that the industry will recover from the downturn of the pandemic period over the forecast window to 2025–26, supported by robust domestic tourism and a steady return of international visitors.
Domestic Tourism: The Backbone of Recovery
Domestic tourism has been the backbone of Australia’s tourism recovery, cushioning the impact of international border closures and then sustaining growth as global travel resumed. Australians travelling within their own country have played a vital role in keeping regional economies afloat and then thriving.
- The Reserve Bank of Australia (RBA) notes that domestic tourism spending rebounded quickly as internal restrictions were lifted and has been above pre‑pandemic levels since March 2022, even though total domestic visitor numbers remain a little below 2019 figures.
- Average spend per domestic trip has increased, driven by pent‑up demand, higher prices, and a tendency for travellers to “upgrade” experiences or take longer stays.
- National Visitor Survey (NVS) data from Tourism Research Australia show strong intrastate and interstate travel, with many Australians choosing regional and nature‑based destinations over overseas trips.
The RBA’s Bulletin article on the recovery in the Australian tourism industry offers detailed analysis of how domestic travel surged and how accommodation and hospitality businesses faced the dual challenge of managing this demand while rebuilding their workforce and operations.
International Tourism: Strong Rebound, Uneven by Market
International tourism to Australia has rebounded strongly overall, but recovery has been uneven across source markets. Some markets have already exceeded 2019 volumes, while others, particularly China, are still catching up.
- WTTC projects that international visitor spending in Australia will reach about 39 billion AUD in 2025, nearly 22% higher than in 2024 and a new record for inbound tourism receipts.
- Tourism statistics summaries suggest that by 2023–2024, overall international visitor numbers were broadly back to pre‑pandemic levels, though the mix of markets and trip purposes has shifted.
- China, once Australia’s largest inbound market by spend, is recovering more slowly. Tourism Research Australia forecasts that Chinese arrivals will be among the fastest‑growing inbound markets between 2025 and 2030, with average annual growth of around 7.3%, but commentators note that it may still take years to fully match pre‑2020 Chinese volumes.
- Other markets have already surpassed 2019 levels; for instance, arrivals from South Korea had doubled compared with pre‑pandemic totals by late 2025, and several other Asian and North American markets show strong momentum.
An analysis from ABC News on Australia’s recovering Chinese tourism market potentially cooling in 2026 dives into the implications of these mixed trends, particularly for businesses that previously relied heavily on Chinese package tours and student travel.
State‑by‑State Tourism Recovery Examples
Recovery has played out differently across Australia’s states and territories, reflecting variations in product offerings, marketing, aviation access, and policy support. Three instructive examples are Western Australia, Queensland, and Tasmania.
Western Australia: Leading on International Recovery
Western Australia (WA) has emerged as a leader in international tourism recovery, thanks in part to a clear visitor economy strategy and strong resource‑driven business travel.
- Government figures show that WA welcomed about 991,000 international visitors in the year to September 2025, up 17% year‑on‑year and just 5,000 shy of 2019 levels, effectively reaching pre‑pandemic international volumes.
- Tourism contributed an estimated 15.9 billion AUD to WA’s Gross State Product in 2023–24 and supported more than 120,000 jobs, underscoring its importance alongside the resources sector.
- WA’s Visitor Economy Strategy 2033 prioritises investment in Aboriginal tourism, regional accommodation and experiences, aviation access, and destination marketing to maintain this momentum.
A state government media statement on Western Australia leading the nation for international tourism recovery highlights how targeted airline partnerships and major events, including hosting the WTTC Global Summit in Perth, have helped position WA as a front‑runner in Australia’s inbound recovery.
Queensland: Tropical North and Experience‑Led Recovery
Queensland’s tourism recovery has been driven by its strong mix of coastal, nature‑based, and adventure product, with a particular focus on Tropical North Queensland.
- The region around Cairns and the Great Barrier Reef is central to Australia’s international appeal and has been the focus of specific recovery grants and marketing campaigns.
- Austrade’s Tropical North Queensland International Tourism Recovery Grant Program provides targeted support to rebuild international visitation over 2025–26 and 2026–27, helping operators adapt product, invest in marketing, and attract new markets.
- Queensland has seen strong domestic demand for coastal and hinterland holidays, alongside renewed international interest in the Reef, islands, and outback experiences.
Tourism Australia’s insights hub and Tourism Research Australia’s data and research portal provide detailed breakdowns of visitor numbers and spend across Queensland’s regions, showing how both domestic and international travellers are returning to iconic destinations and exploring new ones.
Tasmania: Regional and Nature‑Based Strength
Tasmania has capitalised on rising demand for nature, food and wine, and boutique experiences, becoming a standout story in Australia’s tourism recovery.
- Even during periods of border uncertainty, Tasmanian operators reported strong domestic visitation as Australians sought cooler climates, wilderness, and slower‑paced travel.
- As international travel resumed, Tasmania’s brand as a premium, sustainable, and experiential destination has resonated with high‑yield visitors from Europe, North America, and parts of Asia.
- Tourism forecasts and regional reports highlight strong performance in key Tasmanian regions such as Hobart and the South, the East Coast, and the North West, with a focus on dispersing visitors and avoiding overtourism in fragile environments.
Municipal and state tourism forecast updates like latest tourism forecasts pointing to steady growth but changing travel behaviour underline how visitor expectations for sustainability and authenticity align well with Tasmania’s tourism offering.
Global Context: Tourism Recovery in Asia–Pacific
Australia’s tourism recovery is part of a broader rebound in global and regional tourism, but its speed and composition are shaped by Asia–Pacific dynamics.
- UN Tourism’s World Tourism Barometer records that international tourism recovered to about 99% of pre‑pandemic levels globally by 2024, with many destinations exceeding their 2019 arrival numbers.
- The January 2025 Barometer and its statistical annex show that in 2024, international arrivals in Oceania reached roughly 83% of 2019 levels, with further recovery expected in 2025–26 as more long‑haul routes restore capacity.
- A later UN Tourism note states that international tourist arrivals worldwide rose an additional 4% in 2025, reflecting strong travel demand and improved air connectivity across regions.
Documents such as the World Tourism Barometer and Statistical Annex (January 2025) and UN Tourism’s news on international tourist arrivals up 4% in 2025 help position Australia’s performance relative to other Asia–Pacific destinations.
Key Tourism Recovery Trends in Australia
Moving beyond headline numbers, several structural and behavioural trends are shaping how Australia’s tourism recovery unfolds.
1. Higher Spend per Visitor and Experience Upgrading
Visitors are spending more per trip and choosing higher‑value experiences, even where total visitor numbers are only just back to 2019 levels.
- The RBA notes that domestic visitor numbers remain slightly below pre‑pandemic counts, but domestic tourism spending has been above 2019 levels since early 2022, driven by longer stays, higher prices, and premium experiences.
- Tourism analytics overviews show that both domestic and international travellers are increasingly seeking “once‑in‑a‑lifetime” experiences, personalised itineraries, and immersive nature or cultural products.
- Tourism Australia’s strategy documents emphasise attracting high‑yield visitors who stay longer, spend more per night, and travel beyond the main gateways.
The comprehensive overview of Australia tourism statistics highlights this shift toward yield and dispersal as key to future‑proofing the visitor economy.
2. Regional and Nature‑Based Tourism Growth
Nature‑based tourism and regional destinations have benefited from domestic rediscovery and international interest in Australia’s landscapes and wildlife.
- Western Australia’s Visitor Economy Strategy emphasises Aboriginal tourism, outback experiences, and coastal adventures, supported by improved aviation access and new product development.
- Programs like the Tropical North Queensland International Tourism Recovery Grant help key regions rebuild and re‑position for high‑yield international markets.
- Tasmania’s focus on wilderness, food and wine, and boutique accommodation aligns with global trends toward sustainable, slow, and experiential travel.
Tourism Australia’s insights frequently showcase case studies of regional destinations leveraging unique natural and cultural assets to attract higher‑spending visitors.
3. Workforce, Capacity, and Cost Pressures
As demand has surged, tourism operators have faced significant operational challenges.
- The RBA’s tourism recovery research notes ongoing difficulties in recruiting and retaining staff in accommodation, food services, and tour operations, particularly in regional areas.
- Industry barometers, such as TiCSA’s reporting on South Australian tourism, show operators cautiously optimistic but concerned about rising costs for wages, energy, insurance, and supplies.
- National and state industry associations, including ATIA, report that while bookings and forward demand are strong, profitability can be squeezed by these structural cost increases.
News from the Australian Tourism Industry Association (ATIA), such as its Travel Trends Report, underscores the need for coordinated workforce strategies, skills development, and migration settings that support tourism’s growth.
4. Aviation, Connectivity, and Market Access
Air connectivity remains a critical enabler of tourism recovery and future expansion.
- International air capacity to and from Australia has improved markedly since 2022, but some routes and markets still operate below 2019 capacity, influencing which visitor segments return fastest.
- States like WA have prioritised direct long‑haul routes and international events to boost awareness and access, helping them outpace other regions in inbound recovery.
- National tourism and aviation strategies emphasise partnerships with airlines, route development incentives, and long‑term planning to ensure sustainable growth.
UN Tourism’s global barometers and WTTC’s projections both note that aviation bottlenecks and capacity constraints will remain a key factor in how quickly destinations can grow beyond pre‑pandemic levels.
Outlook to 2030 and Beyond
Looking ahead, medium‑ to long‑term forecasts point to continued growth for Australia’s tourism industry, with an emphasis on sustainability, diversification, and resilience.
- WTTC estimates that by 2035, travel and tourism could contribute more than 406 billion AUD to Australia’s economy—over 12% of GDP—and support more than 2.1 million jobs, assuming stable economic and political conditions.
- Tourism Research Australia’s forecasts to 2025–26 suggest steady growth in both domestic and international visits, with domestic travel remaining a foundation and international demand strengthening as more Asian and long‑haul markets reach full recovery.
- UN Tourism’s expert panel surveys indicate that a significant share of experts expect some Asia–Pacific destinations to fully normalise into 2025–2026, leaving further upside for Australia as capacity and demand continue to build.
Tourism Australia’s corporate insights outline strategic priorities such as sustainability, demand diversification, Indigenous tourism development, and experience quality—all designed to ensure that growth benefits both cities and regions while protecting natural and cultural assets.
What Tourism Recovery Trends Mean for Operators and Destinations
For tourism operators, destinations, and policy‑makers, these recovery trends translate into several practical priorities:
- Focus on high‑yield and longer stays: With spend per visitor rising, there is an opportunity to design premium, experience‑rich itineraries that encourage visitors to stay longer and explore more regions.
- Invest in regional and Indigenous product: Regional experiences, nature‑based tourism, and Indigenous tourism enterprises are central to Australia’s differentiated value proposition and are increasingly supported by grants and marketing programs.
- Address workforce and cost challenges: Business models need to account for higher wages and training costs while maintaining service quality, which may mean rethinking pricing, operations, and seasonality.
- Diversify markets and channels: Operators that previously focused heavily on one source market, such as China, are now building diversified portfolios across Asia, North America, and Europe, while using digital channels and online marketplaces for distribution.
- Use data‑driven planning: Access to detailed data and insights from Tourism Research Australia, Tourism Australia, UN Tourism, and WTTC allows destinations and businesses to identify emerging trends early and adjust strategy.
For deeper, ongoing insight, tourism stakeholders can regularly consult Tourism Research Australia’s data and research pages, Tourism Australia’s insights hub, and global reports from WTTC and UN Tourism to track recovery progress, shifts in traveller behaviour, and opportunities for innovation.