what type of tourism generates the most money for australia

Tourism in Australia

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Tourism in Australia is big business! But why is tourism here so important and why does it matter? Read on to find out…

Overview of the Geography of Australia

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Australia, the world’s smallest continent and the largest island, is located in the Southern Hemisphere. It is situated between the Pacific Ocean to the east and the Indian Ocean to the west. Australia is surrounded by the Timor Sea, Arafura Sea, and Coral Sea in the north.

The continent covers an area of approximately 7.7 million square kilometres (2.9 million square miles). It is known for its vast and diverse landscapes, ranging from deserts and grasslands to tropical rainforests and mountain ranges. In the central and western parts of Australia, you will find the Great Victoria Desert and the Gibson Desert, which are arid and sparsely populated regions. The Simpson Desert, located in the northeast, is known for its sand dunes.

Moving towards the coast, the interior is dominated by the Great Dividing Range, a mountain range that stretches parallel to the eastern coastline. The range separates the eastern coastal plains from the inland desert regions. The highest peak on the Australian mainland is Mount Kosciusko, located in the Snowy Mountains of New South Wales.Australia’s eastern coastline is characterised by beautiful sandy beaches, including the iconic Bondi Beach in Sydney. The Great Barrier Reef, the world’s largest coral reef system, runs along the northeastern coast and is a UNESCO World Heritage site. In the far north, the tropical region of Australia, known as the Top End, is home to the Kakadu National Park, which showcases stunning wetlands, waterfalls, and unique wildlife. Moving west, you’ll encounter the vast and sparsely populated Outback, which covers a significant portion of the continent. This region is known for its red earth, rugged landscapes, and iconic landmarks such as Uluru (Ayers Rock) and Kata Tjuta (the Olgas) .In the southwest, you’ll find the fertile regions of Western Australia, including the famous Margaret River wine region. The state is also home to the ancient and unique landscapes of the Pinnacles Desert.

Australia has a diverse range of ecosystems and is known for its unique wildlife, including kangaroos, koalas, platypuses, and a wide variety of bird species.

Overall, Australia’s geography is characterised by a mix of stunning coastal areas, vast deserts, mountain ranges, and diverse ecosystems, making it a captivating destination for nature lovers and adventure seekers.

The tourism industry of Australia has emerged as a significant economic sector, contributing to the country’s economic growth, employment opportunities, and cultural exchange. Renowned for its diverse landscapes, vibrant cities, and unique wildlife, Australia attracts millions of international visitors each year. This introduction aims to provide an academic overview of the tourism industry in Australia, highlighting its key features, economic impact, and sustainability considerations.

Australia’s tourism sector encompasses a wide range of activities, including leisure and business travel, nature-based tourism, cultural tourism, adventure tourism, and ecotourism. The country’s diverse geography plays a pivotal role in attracting tourists, offering a plethora of natural wonders such as the Great Barrier Reef, the Australian Outback, pristine beaches, ancient rainforests, and iconic landmarks like the Sydney Opera House and Uluru. Additionally, Australia’s vibrant cities, including Sydney, Melbourne, Brisbane, and Perth, with their rich cultural heritage, modern infrastructure, and cosmopolitan lifestyle, are popular destinations for international travelers.

The economic significance of tourism in Australia cannot be overstated. The industry generates substantial revenue, provides direct and indirect employment opportunities, and supports various sectors such as accommodation, transportation, food and beverage, retail, and entertainment. According to Tourism Research Australia, in the year 2020, prior to the COVID-19 pandemic, tourism contributed AUD 60.8 billion to the national GDP, accounting for 2.8% of the total. It employed over 666,000 people, representing 5.3% of the country’s total workforce. These figures underline the sector’s importance as a driver of economic growth and job creation.

To sustain and enhance the tourism industry, Australia has adopted a multifaceted approach that encompasses both economic and environmental considerations. The government, along with industry stakeholders, has implemented policies and strategies to promote sustainable tourism practices, protect natural and cultural assets, and ensure visitor satisfaction. Initiatives such as ecotourism certification programs, national parks management plans, and responsible tourism campaigns aim to balance economic benefits with the conservation of the country’s unique ecosystems and cultural heritage.

However, it is important to acknowledge that the tourism industry in Australia faces certain challenges. These include the impact of climate change on the natural environment, the need for infrastructure development to cater to growing tourist numbers, and the preservation of Indigenous cultural values and traditional land rights. Sustainable tourism practices, community engagement, and respectful collaboration with Indigenous communities are vital to address these challenges and foster a responsible and inclusive tourism sector.

In conclusion, the tourism industry in Australia holds significant economic importance, contributing to the nation’s GDP and employment opportunities. With its diverse landscapes, iconic landmarks, and vibrant cities, Australia offers a wide range of attractions for international visitors. However, a sustainable and responsible approach is crucial to ensure the long-term preservation of natural and cultural assets, while providing authentic and enjoyable experiences for tourists. By balancing economic growth with environmental protection and cultural sensitivity, Australia can continue to thrive as a world-class tourism destination.

Now lets take a look at some statistics that emphasise the scale of tourism in Australia:

1. In 2019, Australia welcomed approximately 9.4 million international visitors, marking a 3.6% increase compared to the previous year.

2. Tourism expenditure in Australia reached AUD 65.6 billion in 2019, with an average spend per trip of AUD 4,254 by international visitors.

3. The domestic tourism market in Australia is also substantial, with Australians taking approximately 114.6 million overnight trips within the country in 2019.

4. The Great Barrier Reef, a UNESCO World Heritage site, attracted 2.4 million visitors in 2019, contributing significantly to the tourism industry.

5. China remains the largest source of international visitors to Australia, accounting for approximately 1.4 million arrivals in 2019, followed by New Zealand (1.3 million) and the United States (764,000).

6. Tourism generated approximately 646,000 direct jobs in Australia in 2019, representing 5.2% of the total employment in the country.

7. The Australian tourism industry experienced a significant decline in 2020 due to the COVID-19 pandemic. International visitor arrivals dropped by 78.9% compared to 2019, with only 2.2 million arrivals recorded.

8. Similarly, domestic tourism was impacted by travel restrictions and lockdown measures in 2020, resulting in a 36% decline in overnight trips compared to the previous year.

9. The tourism industry in Australia is highly resilient and has shown signs of recovery in 2021. In the first quarter of the year, international visitor arrivals increased by 5.6% compared to the same period in 2020.

10. Nature-based tourism is a significant draw for visitors to Australia. In 2019, around 5.2 million international tourists engaged in activities such as wildlife watching, hiking, and visiting national parks.

Australia, as a diverse and captivating destination, offers a plethora of popular tourist destinations that showcase the country’s unique landscapes, cultural heritage, and natural wonders. This section will provide an overview of some of the most popular tourist destinations in Australia, highlighting their key features, attractions, and significance.

1. Sydney: Sydney, the largest city in Australia, is a prominent global tourist destination. The city is renowned for its iconic landmarks, including the Sydney Opera House and Sydney Harbour Bridge, which symbolise Australia’s architectural and engineering prowess. The city also offers pristine beaches such as Bondi and Manly, vibrant neighbourhoods like Darling Harbour and The Rocks, and a thriving arts and cultural scene.

2. Great Barrier Reef: The Great Barrier Reef, a UNESCO World Heritage site, is one of Australia’s most sought-after natural attractions. Located off the northeastern coast, it is the world’s largest coral reef system, stretching over 2,300 kilometres (1,429 miles). This stunning ecosystem supports an incredible array of marine life, making it a mecca for snorkelling, scuba diving, and boat tours.

3. Uluru-Kata Tjuta National Park: Located in the heart of Australia’s Red Centre, Uluru-Kata Tjuta National Park holds immense cultural and spiritual significance for the Indigenous Anangu people. Uluru, also known as Ayers Rock, is a massive sandstone monolith that stands as a mesmerising landmark. Kata Tjuta, a group of ancient domed rock formations, adds to the park’s awe-inspiring scenery and cultural value.

4. Melbourne: As Australia’s cultural capital, Melbourne entices visitors with its vibrant arts scene, culinary delights, and architectural marvels. The city boasts a blend of Victorian-era architecture, modern skyscrapers, and vast green spaces. Highlights include Federation Square, the Royal Botanic Gardens, vibrant street art in the laneways, and a thriving coffee culture.

5. Great Ocean Road: The Great Ocean Road, stretching along the southeastern coast of Victoria, offers breathtaking coastal scenery and iconic landmarks. The Twelve Apostles, a collection of limestone stacks rising from the Southern Ocean, is a major drawcard. Visitors can also explore stunning beaches, lush rainforests, and charming coastal towns while driving along this scenic route.

6. Cairns and the Tropical North: Cairns serves as the gateway to Australia’s Tropical North, which encompasses the Daintree Rainforest, the Atherton Tablelands, and the captivating beaches of the Coral Sea. Visitors flock to Cairns for its access to the Great Barrier Reef, as well as for adventure activities like white-water rafting, hot air ballooning, and exploring the ancient rainforests.

7. Tasmania: Known for its pristine wilderness, Tasmania is an island state that offers a diverse range of attractions. From the breathtaking landscapes of Cradle Mountain-Lake St Clair National Park to the historic sites of Port Arthur, Tasmania is a haven for nature enthusiasts, hikers, and those seeking a tranquil escape. The island also boasts unique wildlife and world-class gourmet experiences.

8. Perth: Situated on Australia’s western coast, Perth is a vibrant and cosmopolitan city known for its stunning beaches, expansive parklands, and a burgeoning food and wine scene. Kings Park and Botanic Garden, located in the heart of the city, offers sweeping views of the Swan River and showcases Western Australia’s native flora.

9. The Whitsundays: Located in Queensland, the Whitsunday Islands are a picturesque archipelago renowned for their pristine white-sand beaches, crystal-clear waters, and vibrant marine life. Visitors can explore the iconic Whitehaven Beach, snorkel or dive in the Great Barrier Reef, and indulge in luxury resorts and sailing experiences.

Australia, as a diverse and geographically rich country, offers a wide array of popular types of tourism that cater to the varied interests of visitors. This section will provide an academic overview of some of the most sought-after types of tourism in Australia, highlighting their characteristics, attractions, and significance.

1. Nature-Based Tourism in Australia: Australia’s remarkable natural landscapes and biodiversity make nature-based tourism highly popular. The country is home to iconic sites such as the Great Barrier Reef, the Daintree Rainforest, and the vast outback regions. Visitors engage in activities such as wildlife watching, birdwatching, hiking, camping, and exploring national parks, immersing themselves in the country’s pristine environments.

2. Coastal and Beach Tourism in Australia: With an extensive coastline, Australia offers a haven for coastal and beach tourism. From the golden shores of Bondi Beach in Sydney to the remote beauty of Whitehaven Beach in the Whitsundays, visitors flock to Australia’s stunning beaches to relax, swim, surf, and indulge in water-based activities such as snorkeling, diving, and sailing.

3. Cultural and Indigenous Tourism in Australia: Australia’s rich cultural heritage, including its Indigenous history and diverse multicultural society, attracts visitors interested in cultural tourism. Indigenous tourism experiences allow visitors to learn about the traditions, art, spirituality, and connection to the land of Australia’s First Nations people. Additionally, urban centers like Sydney and Melbourne offer vibrant arts scenes, museums, galleries, and cultural festivals that showcase Australia’s multiculturalism.

4. Adventure Tourism in Australia: Australia’s varied landscapes provide ample opportunities for adventure tourism. Activities such as skydiving, bungee jumping, white-water rafting, rock climbing, and off-road 4WD expeditions appeal to adrenaline seekers. Regions like Cairns, the Blue Mountains, and the Kimberley offer thrilling adventure experiences against the backdrop of stunning natural beauty.

5. Food and Wine Tourism in Australia: Australia’s diverse culinary scene and renowned wine regions attract food and wine enthusiasts. From the Barossa Valley in South Australia to the Margaret River region in Western Australia, visitors can embark on wine tours, visit cellar doors, sample local produce, and indulge in world-class dining experiences that showcase Australia’s gastronomic delights.

6. Urban Tourism in Australia: Australia’s vibrant cities, such as Sydney, Melbourne, Brisbane, and Perth, draw visitors seeking urban experiences. These cities offer a blend of cosmopolitan lifestyle, architectural marvels, cultural institutions, shopping precincts, and a range of entertainment options, including theater, concerts, and sporting events.

7. Ecotourism in Australia: With a strong emphasis on sustainability and environmental conservation, ecotourism is a growing trend in Australia. Visitors engage in low-impact activities that contribute to the preservation of natural habitats, including wildlife sanctuaries, eco-lodges, and guided tours focused on environmental education and awareness.

8. Outback and Rural Tourism in Australia: Australia’s vast and remote Outback regions attract visitors seeking an authentic Australian experience. Exploring the rugged landscapes, visiting historic mining towns, interacting with local communities, and participating in outback activities like camel riding or stargazing offer a unique perspective on Australia’s vast interior.

9. Sports Tourism in Australia: Australia’s sporting culture and world-class sporting events make sports tourism a popular choice. Events such as the Melbourne Cup, Australian Open tennis tournament, and cricket matches at the iconic Melbourne Cricket Ground draw sports enthusiasts from around the globe.

10. Wellness and Health Tourism in Australia: Australia’s pristine natural environments, spa retreats, and wellness centers attract visitors seeking relaxation and rejuvenation. From yoga retreats in Byron Bay to wellness-focused resorts in the tropics, wellness and health tourism offer opportunities for self-care, meditation, and holistic experiences.

Tourism plays a significant role in Australia’s economy, contributing to social, environmental, and economic changes. Lets take a look at what the impacts of tourism in Australia look like:

Social Impacts

Positive Social Impacts

Tourism in Australia fosters cultural exchange and promotes social integration by bringing together people from diverse backgrounds. It offers opportunities for residents to interact with tourists, enabling the sharing of traditions, customs, and knowledge. Additionally, tourism contributes to the preservation and revitalisation of indigenous cultures, showcasing unique art, music, and storytelling.

Negative Social Impacts

The rapid growth of tourism can lead to overcrowding and strains on infrastructure, resulting in diminished quality of life for local communities. Additionally, cultural commodification and commercialisation can dilute traditional practices and erode local identities. Tourism in Australia can also create socio-economic disparities, as local businesses may struggle to compete with larger corporations catering to tourists.

Environmental Impacts

Positive Environmental Impacts

Tourism in Australia can contribute to environmental conservation and sustainability through the creation of national parks, protected areas, and wildlife sanctuaries. These initiatives promote biodiversity and preserve fragile ecosystems. Moreover, sustainable tourism practices, such as responsible waste management and eco-friendly infrastructure, reduce the carbon footprint and encourage environmental consciousness among tourists and local communities.

Negative Environmental Impacts

The influx of tourists can exert considerable pressure on natural resources, leading to habitat degradation, deforestation, and pollution. Activities such as unregulated water consumption, land development, and improper waste disposal can disrupt delicate ecosystems. Additionally, increased air travel associated with tourism contributes to greenhouse gas emissions, further exacerbating climate change.

Economic Impacts

Positive Economic Impacts

Tourism is a vital pillar of Australia’s economy, contributing to employment generation, regional development, and foreign exchange earnings. The sector provides jobs across various sectors, including accommodation, food services, transportation, and retail, thus improving income distribution. Furthermore, tourism stimulates investment in infrastructure development, enhancing the overall economic growth of the country.

Negative Economic Impacts

Relying heavily on tourism in Australia can render the economy vulnerable to external shocks and fluctuations in demand. Seasonal variations and global crises can disrupt tourism flows, leading to job losses and economic instability. Over-dependence on tourism in Australia may also create an imbalance in the economy, as other sectors receive inadequate attention, hindering diversification and resilience.

Tourism in Australia has profound social, environmental, and economic impacts, encompassing both positive and negative dimensions. While tourism contributes significantly to the economy and cultural exchange, it can also strain local infrastructure, degrade the environment, and create socio-economic inequalities. By embracing sustainable practices, promoting community involvement, and ensuring responsible development, Australia can maximise the positive impacts of tourism while mitigating its negative effects. Policymakers, industry stakeholders, and communities must collaborate to achieve a harmonious balance between tourism development and the well-being of local communities and the environment.

Now that we know a bit more about tourism in Australia, lets answer some of the most common questions on this topic:

1. Q: What are the popular tourist destinations in Australia?

   A: Australia boasts several popular tourist destinations, including Sydney, Melbourne, Great Barrier Reef, Uluru (Ayers Rock), the Whitsunday Islands, the Great Ocean Road, and the Daintree Rainforest.

2. Q: Is a visa required for traveling to Australia?

   A: Yes, most visitors to Australia require a visa. The type of visa will depend on the purpose and duration of your visit. It is advisable to check the official Australian government website for the latest visa requirements and application processes.

3. Q: What is the best time of year to visit Australia?

   A: Australia’s climate varies across its regions. Generally, the summer months (December to February) are popular for beach activities, while autumn (March to May) and spring (September to November) offer mild temperatures and colourful landscapes. Winter (June to August) can be a good time for visiting northern regions and engaging in winter sports in the southern parts.

4. Q: Are there any safety concerns regarding wildlife in Australia?

   A: Australia is known for its unique wildlife, including animals like kangaroos, koalas, and snakes. While encounters with wildlife can be exciting, it is important to maintain a safe distance and follow any guidelines provided by local authorities to ensure your safety and the well-being of the animals.

5. Q: How can I explore the Great Barrier Reef?

   A: The Great Barrier Reef can be explored through various means, such as snorkelling, scuba diving, or taking a boat or helicopter tour. Several coastal cities and towns in Queensland offer access points to the reef, including Cairns, Port Douglas, and the Whitsunday Islands.

6. Q: Are there any cultural experiences to explore in Australia?

   A: Australia is rich in cultural experiences. Visitors can engage with indigenous cultures, attend cultural festivals, explore Aboriginal art galleries, and learn about the history and traditions of the First Nations peoples. Additionally, Australian cities offer diverse culinary experiences, art exhibitions, and theatre performances.

7. Q: Can I drive around Australia as a tourist?

   A: Yes, tourists can drive around Australia, provided they hold a valid driver’s license and adhere to local traffic rules. Australia has an extensive road network, and long-distance road trips, such as the Great Ocean Road or the East Coast drive, are popular among tourists. It is essential to plan your route, be aware of the distances involved, and consider road safety precautions.

8. Q: What are some outdoor activities to enjoy in Australia?

   A: Australia offers a wide range of outdoor activities, such as hiking in national parks, surfing, snorkelling, sailing, whale watching, and exploring the Outback. Adventure enthusiasts can also indulge in activities like skydiving, bungee jumping, and hot air balloon rides.

9. Q: Are there any restrictions on bringing food or souvenirs into Australia?

   A: Australia has strict biosecurity regulations to protect its unique ecosystem. Certain food items, plants, and animal products may be prohibited or require permits to bring into the country. It is crucial to familiarise yourself with the customs and quarantine regulations to avoid any issues at the border.

10. Q: How can I travel between different cities in Australia?

    A: Australia has an extensive transportation system that includes domestic flights, trains, buses, and ferries. Domestic flights are a popular and efficient way to travel between major cities, while trains and buses offer scenic options for exploring the countryside. Ferries are commonly used for reaching islands and coastal destinations.

As you can see, tourism Australia is big business! However, it is vital that tourism here is managed effectively to ensure that sustainable tourism principles are adopted.

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Blog | 09 Feb 2021

Australia’s Tourism Industry: Not so lucky

While it is true that Australia’s experience with the COVID-19 pandemic has at least to an extent fitted Australia’s traditional moniker as the ‘lucky country’ , the same cannot be said for country’s travel and tourism industry. Australia, like many other countries in the Asia-Pacific (APAC) region, has taken a firm stance on borders, with international arrivals severely restricted since the start of the pandemic. Inbound tourists to Australia are estimated to have declined more than 80% in 2020 relative to 2019, comparable with the 83% decline estimated for APAC in aggregate.

In addition, in a unique approach compared with most other countries, several Australian state and territory governments have also implemented border restrictions on interstate travel at various stages during the pandemic, often in response to only a small increase in new cases. This has had a negative impact on domestic tourism, with an estimated decline in Australian resident visitors of 31% in 2020—the most of any APAC country except for China. (See Tourism Economics’ blog post and research briefing for a full analysis).

The imposition of state border restrictions has been particularly controversial among tourism operators, as domestic travel (which accounted for 80% of total tourism spend in Australia in recent years) is essential to the recovery of the sector while international travel remains severely curtailed in the near future. Restrictions on interstate travel dampens the potential boost available from Australian residents substituting outbound travel for domestic trips.

The combined impact on Australian tourism of international and interstate restrictions, in addition to broader economic weakness, has been significant. The total contribution of travel and tourism to Australian GDP is estimated to have fallen from almost 11% in 2019 to a draft estimate of just 6% in 2020—the lowest in recent history. The impact on employment has also been substantial; an estimated 770,000 tourism-supported jobs were at risk in 2020 from the downturn in travel.

The importance of a rebound in domestic tourism cannot be understated. If domestic travel spending regains 2019 levels in 2021, for instance, as many as 300,000 extra jobs could be supported compared with Tourism Economics’ most recent forecasts, even with limited international travel.

There is no doubting the benefits of tough border restrictions at both a national and state level, with the spread of new COVID-19 infections being contained so effectively and allowing a return to normality of sorts throughout much of the country. However, the costs of this approach have not been evenly distributed, falling heavily on sectors including travel and tourism and hospitality. The broader recovery of the Australian economy will ultimately be limited while those sectors continue to suffer. Constraints on tourism recovery also exacerbate other issues in the economy, such as the lingering impact from restricted migration . As long as these restrictions continue to benefit some parts of the economy at the expense of others, targeted support such as extensions of JobKeeper, JobSeeker, and/or tax concessions are warranted for those sectors most in need.

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Tourism and the visitor economy

Spectacular and unique, Australia is an aspirational tourism destination for international travellers.

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• Investors typically establish a new company, register as a foreign company or acquire an existing company. Assess your options with our Investor Guide .
• Austrade is Australia’s national investment promotion agency. We attract and facilitate game-changing foreign direct investment into Australia. Our team of business and investment specialists can connect investors to early-stage opportunities in Australia and provide direct and tailored professional assistance. Find out how we can help .

We enjoy an enviable reputation for our world-class cultural and natural attractions, from pristine beaches and rainforest to the opportunity to experience the oldest living culture on Earth.

After ten years of constant growth, we welcomed almost 10 million visitors in 2019 prior to the COVID-19 pandemic. We’re also a high yield market, with international visitors staying long and spending big.

Supported by the Australian Government’s visitor economy strategy, THRIVE 2030 , the sector has resumed its path to long-term sustainable growth, creating new opportunities for investors.

Australians holiday at home

Operators in Australia also benefit from a strong domestic market.

Australians are enthusiastic travellers and love to explore their own backyard. Increased domestic demand during the pandemic has continued; and in 2022 overnight and day trip spending by domestic tourists surpassed pre-pandemic levels.

• In a typical year, Australians account for around three-quarters of total tourism spend
• Australians make more than five domestic overnight trips a year on average
• In the September quarter 2022, spending on domestic overnight trips increased by 33% to A$27.8 billion, when compared to pre pandemic levels.
• By 2027, annual domestic overnight trip and day trip expenditure is expected to reach A$137.9 billion and A$41.1 billion respectively.

Poised to grow

International tourism is beginning to recover following the recent global disruption from the pandemic. Tourism Research Australia predicts international visitor expenditure will exceed pre-pandemic levels in 2024 before increasing to A$48.8 billion by 2027. 

With our proximity to fast-growing markets in the Asia-Pacific, we’re well-positioned to recapture a significant share of global travel spend.

Our long-term national strategy for the visitor economy, THRIVE 2030 , sets out our plan to return to pre-pandemic visitor expenditure of A$166 billion by 2024, and grow it to A$230 billion by 2030.  

Australia’s political stability and resilient economy offers prospective businesses and investors a safe and low-risk business environment.

And the Australian Government is backing the further recovery of Australia’s visitor economy, with a new $48 million tourism and travel package announced in the October 2022 Budget. The measures include plans to: 

• attract workers to our vibrant tourism industry 
• train and upskill new and existing hospitality and tourism workers 
• support tourism businesses with activities that drive international travel to and from Australia. 

Importantly, our THRIVE 2030 strategy supports sustainable growth. We know our natural assets, such as world-class nature and wildlife, are key to our attractiveness as a destination, and must be protected. In pursuing industry growth, we recognise that balancing social and environmental factors alongside economic ones is essential to sustain a truly healthy visitor economy for decades to come.  

Top 5 visiting nationalities for the year ending September 2022: New Zealand India United Kingdom Singapore USA Visitors from India spent $1.3 billion in total which included $973 million in Australia in the year ending September 2022, around three-quarters of pre-COVID levels – demonstrating a strong recovery for this market.

Australian tourism fast facts

Source: STR and TRA , based on pre-COVID 2019 data 

• Total tourism worth A$166 billion 
• International tourism worth A$45.4 billion, including $31.4 billion spent onshore 
• Ranked 2nd globally for international visitor spend per trip 
• Domestic spend grew around 6% per year for the 10 years to 2019 
• 7th largest tourism market globally 
• Australia’s 4th-largest export industry 
• More than 88,000 international visitors spent more than $1,000 per night in Australia, with another 387,000 spending between $500 and $999

Unique cultural experiences

Australia offers visitors the unique ability to experience the oldest living culture on Earth – that of Australia’s First Nations peoples.

First Nations tourism gives visitors a unique insight into the relationship Aboriginal people have with the land and sea – their Connection to Country – helping them create a deeper connection to Australia.

In 2019, 1.4 million international visitors (17 per cent) participated in an Indigenous tourism experience while visiting Australia, a six per cent year-on-year increase since 2010. For domestic travellers, the figure was one million, an increase of 13 per cent each year since 2013.

Wine and dine where the food is fresh

Australia’s award-winning restaurants and wineries serve up fresh produce from our unspoiled landscapes, while our cafes have made coffee an art form. Add to this a packed calendar of events that draws travellers year-round and you have a world-class tourism offering.

Food and wine accounts for 1 in 5 dollars spent by international tourists in Australia. 

Soaking up nature

Potential visitors rank Australia first for its world-class nature and beauty (Consumer Demand Project, Tourism Australia. Dec 2022). From pristine rainforests to spectacular beaches and vast outback plains, Australia’s stunning natural landscapes offer something for every traveller. Australia frequently appears on top 10 lists of the most world’s most beautiful countries, such as the 2022 Rough Guides reader’s vote .

Our diverse and unique ecosystems are home to a huge variety of plants and wildlife, much of which is found nowhere else on earth. This precious natural heritage is protected in thousands of parks and conservation reserves that dot the country.

The World Economic Forum ranks Australia number one for natural resources, based on both our natural beauty and highly developed outdoor tourism industry.

Australia offers abundant opportunities for businesses looking to offer nature-based experiences. With such an expansive natural environment – including a continuous coastline stretching some 30,000 kilometres – innovative businesses have the chance to look beyond familiar destinations to craft travel experiences that are new and truly unique.

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Australian National Accounts: Tourism Satellite Account

Estimates of tourism’s direct contribution to the economy including GDP, value added, employment and consumption by product and industry

Main features

Key figures.

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Chain volume measures source: Australian System of National Accounts (cat. no. 5204.0)  

2018-19 key points

Chain volume measures.

• Direct tourism Gross Domestic Product (GDP), in volume terms, increased by 3.4%, compared with real GDP growth of 1.9%.
• Direct tourism gross value added at basic prices, in volume terms increased by 3.3%, compared to gross value added for all industries which increased by 1.9%.
• Internal tourism consumption (total domestic and international consumption in Australia) in volume terms, increased by 3.1%. Of this figure, domestic tourism consumption increased by 3.4% while international tourism consumption grew by 2.0%.
• Direct tourism gross value added per hour worked (a measure of tourism labour productivity) increased by 0.6% compared to growth for the whole economy which fell by -0.2%.  

​​​​​​​Current price measures

• Direct tourism GDP increased by 6.0% to $60,821m, compared with GDP growth of 5.3%.
• Tourism share of GDP remained unchanged at 3.1%.  

​​​​​​Industry gross value added

• Direct tourism gross value added increased by 6.1% to $55,939m.  

​​​​​​​Tourism consumption

• Internal tourism consumption increased by 6.2% to $152,039m.
• Domestic tourism consumption increased by 6.7% to $112,893m.
• Tourism exports (international tourism consumption in Australia) increased by 4.6% to $39,145m.
• Tourism imports (outbound tourism consumption by Australian residents on outbound trips) increased by 7.8% to $58,306m.  

​​​​​​Tourism employment

• Tourism employed persons increased by approximately 21,500 employees to approximately 666,000 employed persons.
• Tourism share of total employment remained stable at 5.2%.
• Hours worked in tourism increased by 2.6%, compared with an increase of 2.1% for the overall economy.

Analysis of results

In the Australian Tourism Satellite Account (TSA) the direct contribution of tourism to the Australian economy has been measured using the demand generated by visitors and the supply of tourism products by domestic producers.

The diagram below provides a graphical depiction of the flow of tourism consumption through the Australian economy in 2018-19. What the diagram highlights is that unlike traditional ANZSIC industries in the Australian National Accounts, tourism is not measured by the output of a single industry, but rather from the demand side i.e. the activities of visitors. It is the products that visitors consume that define what it is that the tourism economy produces. That is, the diagram shows how the value of internal tourism consumption (as measured by the sum of international and domestic tourism consumption in purchasers prices, i.e. the price the visitor pays) is disaggregated to either form part of tourism gross value added and tourism Gross Domestic Product (GDP) or it is excluded as it either forms part of the "second round" indirect effects of tourism or the output was not domestically produced.  

Flow of tourism consumption through the Australian economy (a)(b)(c)

a. Totals may not add due to rounding b. Tourism consumption is measured in purchasers' prices unless otherwise specified.     Other monetary aggregates are measured in basic prices. c. All figures in this diagram are in current price terms unless otherwise specified. d. Includes wholesale and transport margins supplied domestically. e. In the case of goods, this will only include the net taxes attributable to retail trade activities.

Revisions in this issue

Revisions are a necessary and expected part of accounts compilation as data sources are updated and improved over time. This issue includes revisions to tourism aggregates for the years subsequent to the latest (2016-17) benchmark.

Revisions to 2017-18 data include:

• Revisions to National Accounts source data used in the compilation of estimates of tourism demand. Consequently, estimates of tourism industry output, tourism value added and tourism gross domestic product in the TSA have also been revised.
• Revisions to Tourism Research Australia's (TRA) National Visitor Survey (NVS) data. The NVS data has been revised back to 2017-18 to align with the latest release of the ABS population projections that are used to benchmark NVS results to the Australian population. Further information can be found at National Visitor Survey Methodology .
• Adjustments as a result of the TSA annual balancing and confrontation process. This is particularly the case for tourism products where the estimates have been modelled using a range of source data.  
• Revising estimates for Imputed and actual rent on vacation homes as well as imputations for the costs to host households (for example Food, alcohol and other beverage products and Shopping, gifts and souvenirs etc.). These revisions reflect some small changes to the number of international visitor nights where visitors are staying in their own property or with friends and relatives.
• The incorporation of updated data from the Survey of International Trade in Services (SITS). The TSA uses short term visitor data from SITS to estimate education consumption by international visitors. Data for 2017-18 has been revised since the last TSA release.
• Small upward revisions for international airfares in 2017-18 as a consequence of revisions to air passenger transport service credits in the September 2019 issue of International Trade in Goods and Services, Australia (5368.0) .

Although generally the TSA is only revised back to the years subsequent to the latest benchmark, there are two key exceptions in this release:

• Revisions to data published in Labour Force, Australia, Detailed, Quarterly (cat. no. 6291.0.55.003) .
• Updated seasonal analysis factors from Labour Force have been incorporated in all periods to reduce the variability in the tourism industry estimates.
• Minor adjustments to selected tourism industries to reflect some changes to the tourism value added ratio since the benchmark.  
• Improvements to the estimated consumption of air services provided by foreign carriers;
• Changes to travel agent margins to ensure consistency between margins paid by domestic travellers and residents travelling overseas; and
• Revisions to non-resident pre-purchased international airfares and international airfares purchased in Australia. These revisions are a result of utilising more recent data on resident/foreign carriers market shares.

In addition, economy wide national accounting aggregates have also been revised across the entire series to ensure consistency with published estimates in the 2018-19 issue of Australian System of National Accounts (cat. no. 5204.0) published on 25 October 2019. These revisions affect tourism's share of GDP and GVA presented in Tables 1, 2 and 5 of the TSA data cube.

Note also that revisions to the chain volume estimates level across the time series are an expected part of re-referencing the indexes to 100 in the latest reference year (2017-18).

Data downloads

Australian national accounts: tourism satellite account, changes in this issue.

This release is impacted by a series break in Tourism Research Australia's (TRA) National Visitor Survey with respect to 2018-19. TRA have indicated that the move to 100% mobile sampling from the March quarter 2019 has resulted in a level shift in the domestic expenditure and visitors estimates. However, rather than revising the complete time series of the Tourism Satellite Account (TSA) at this point, the ABS has maintained the level of the existing time series but estimated what the level of the 2018-19 data would have been without the series break. As a consequence, significant adjustments were required to be made to the 2018-19 product level estimates from the National Visitor Survey. These adjustments were in line with advice provided by TRA and were applied consistently across a range of products, except where alternative data sources have identified an alternative growth rate was applicable for a particular product. These adjustments apply only to data in the 2018-19 reference year.

In the 2019-20 release of the TSA, due for release in December 2020, the movement in the levels of the National Visitor Survey between 2018-19 and 2019-20 will be applied to the existing TSA series. However, in the following release, that is the 2020-21 release including a new benchmark reference year of 2019-20, the full time series of the TSA will be revised to reflect the revised levels of the National Visitor Survey data. This is in accordance with ABS' revision rules and will also allow sufficient time to determine over what period the revisions from the break in the series should be applied to.

Furthermore, as a result of the series break in the National Visitor Survey, no estimates of visitor numbers are included in this release. Likewise, estimates of average visitor expenditure are also not included in this release. This has resulted in two less tables in this release and a re-ordering of the existing tables when compared to a previous TSA "update" year, e.g. the 2016-17 release.

As well as the changes noted above, new estimates of direct tourism employment by gender by status in employment (ie. full time and part time workers) are included from this release.

A number of revisions were also made to the TSA estimates with respect to 2017-18 in this release due to revisions to a range of TSA source data. Please see the Revisions in this Issue section for more details.

For further information about these and related statistics, please contact the National Information and Referral Service on 1300 135 070. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

Previous catalogue number

This release previously used catalogue number 5249.0.  

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Nielsen data reveals australia’s top travel trends and the brands spending big to attract aussie tourists, 4 minute read | april 2024.

• Industry’s biggest ad spenders revealed as travel marketing budgets jump 8% quarter-on-quarter
• Top local and overseas destinations revealed
• Most popular Aussie travel websites
• The winners and losers of the frequent flyer war

Sydney – April 30 , 2024 – As many Australians return from a much-needed retreat over the recent school holiday break, millions are already planning their next getaway, embracing travel rewards schemes, while being wooed by travel brands spending millions to get their business.

Nielsen Consumer & Media View (CMV) data shows that 76% of Aussies plan on travelling domestically in the next 12 months, while more than half (52%) have their eye on an overseas destination.

Top domestic destinations

Younger Aussies (25 to 39) are the most likely to be bitten by the domestic travel bug, with 78% planning to holiday locally in the next 12 months. Sydney narrowly beats Melbourne as the preferred place to visit, followed by The Gold Coast, Regional NSW, then Brisbane.

Top overseas destinations

The even younger 18 to 24 age group are the most likely to travel overseas, with 58% planning to travel abroad in the coming year. The UK tops the list of desired OS destinations, followed by New Zealand, Japan, The USA and Indonesia.

While most Aussies are looking for a beach getaway when it comes to staying close to home, they prefer a trip involving plenty of sightseeing, followed by some rest and relaxation, once they leave the country.

Top travel websites

Data from Nielsen Digital Content Ratings (DCR) saw Qantas claim top spot when it comes to travel websites, followed by Trip Advisor with 5.82 million and 5.02 million users respectively in Q1 of this year. Booking Holdings Network was the third-largest platform in terms of users with 2.5 million.

Average user engagement time on most travel platforms was also consistent from Q4 2023 to Q1 2024, although Royal Caribbean Cruises and  Anytrip.com.au  led the pack. On average, Royal Caribbean users spent roughly 29 minutes interacting with the platform, while Anytrip users spent almost 27 minutes on the platform.

Top frequent flyer programs

The number of Australians who are members of a frequent flyer program also increased, with 57% of all Australian consumers now part of some sort of travel rewards scheme. Qantas remains the market leader with a 45% share of the market, followed by Virgin (31%), and other smaller players making up the remaining 24%.

Top travel advertisers

In addition, Nielsen Ad Intel data also shows that the travel and tourism industry spent more than $153 million on advertising in Australia in Q1, 2024 – an increase of 8% from the previous quarter, with TripADeal the biggest spender, followed by Virgin Australia, then the Flight Centre-owned Ignite Travel. 

Nielsen Ad Intel’s Australia Commercial Lead, Rose Lopreiato, said: “Australians’ love of travel continues to defy cost of living pressures, as shown by an 8% jump in travel ad spend this quarter. You can’t get a stronger indicator than that when it comes to how marketers and advertisers are spending in order to maximise ROI, forge lasting connections with brands and consumers, and do so in the most economical way possible. From competitive ad spend analysis, to knowing what your competitors are saying in market and the deals and offers you’re up against, Ad Intel helps you understand which ads are driving your competitors spend and where”.

Glenn Channel, Nielsen’s Pacific Head of Advanced Analytics added: “More than ever, brands need data that gives them the edge on their competition. That means going above standard demographic information, and understanding consumers, in this case travellers, as unique groups, who are motivated by more than just the urge to get away. Nielsen CMV enables brands to see consumers through an advanced audience lens, delivering a more holistic picture of behaviours and preferences with surprising linkages and purchase triggers that other consumer insight providers can’t match.”

About Nielsen

Nielsen shapes the world’s media and content as a global leader in audience measurement, data and analytics. Through our understanding of people and their behaviours across all channels and platforms, we empower our clients with independent and actionable intelligence so they can connect and engage with their audiences – now and into the future. Nielsen operates around the world in more than 55 countries. 

Learn more at www.nielsen.com and connect with us on social media (Twitter, LinkedIn, Facebook and Instagram). 

Media Contact

Dan Chapman Assoc. Director, Communications, Nielsen APAC [email protected] +61 404 088 462

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List of Countries by Tourism Income

Below you can find a list of countries by total tourism income and ratio of tourism income by total GDP. You can also find an interactive map below where each country is colored by its tourism income. The ratio of tourism income to the total GDP gives a rough figure which economies are most dependent on tourism income.

• United States of America has the highest total tourism income with over 210 billion $ yearly. This huge figure however is only 1.1% of the country's total GDP
• Spain has the second largest tourism income in the World with almost 68 billion $ yearly, making up tourism 5.2% of the total economy.
• Another Mediterranean country, France, is the third on the list with over 60 billion yearly tourism income.
• It is no wonder that the popular holiday destination Maldives is the leader when it comes to share of tourism in the total GDP. 2.7 billion $ tourism income of Maldives makes up 60% of the country's total GDP.
• Palau and Grenada, two island countries of Caribbeans, come second and third after Maldives. Palau with 141 million $ and Granada with 448 million $ obtain respectively 48% and 40% of their GDP by tourism.

Similar Data

Countries by Number of Incoming Tourists

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Travel, Tourism & Hospitality

• Direct tourism GDP Australia FY 2006-2023

Australia's direct tourism gross domestic product (GDP) rose to around 57 billion Australian dollars in the year ended June 2023. This marked an increase from the previous year and the continuation of tourism GDP recovery, which was lower in recent years, largely due to the coronavirus pandemic.

Direct tourism gross domestic product (GDP) in Australia from financial year 2006 to 2023 (in billion Australian dollars)

Additional Information

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December 2023

FY 2006 to FY 2023

GDP in chain volume measures. Australia's financial years run from July to June of the following year. For example, FY 2017 starts on July 1, 2016 and ends on June 30, 2017.

Other statistics on the topic Travel and tourism industry in Australia

• Number of outbound tourists from Australia FY 2023, by destination
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Statistics on " Travel and tourism in Australia "

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Inbound tourism

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Outbound tourism

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• Premium Statistic Number of domestic overnight visitors Australia 2014-2023
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• Premium Statistic Domestic overnight tourist trip expenditure Australia FY 2014-2023
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Economic research and industry reports

Strategic research and analysis programs focusing on delivering measures of the structure and performance of the Australian tourism industry.

Main content

Tourism plays a significant part in Australia’s economy, contributing to both GDP and employment. Tourism Research Australia’s strategic research and analysis program focuses on delivering measures of the structure and performance of the Australian tourism industry.

Our analysis brings together key findings from our own surveys with supply and demand intelligence from a broad range of sources to support policy making, marketing and industry development.

Economic and industry analysis reports cover issues such as the value of tourism to the Australian economy (both directly and indirectly), industry performance, current market dynamics and emerging trends. We also produce an annual State of the Industry report, which analyses the current performance of the Australian tourism industry, the challenges ahead, and how the industry needs to respond.

State of the Industry

Tourism Research Australia's annual State of the Industry report presents a snapshot of Australia’s visitor economy.

Tourism satellite accounts

The economic value of tourism to Australia’s economy is estimated using an internationally accepted framework which produces measures for tourism against gross domestic product, gross value added, trade, and employment.

Tourism Investment Monitor

Australia’s Tourism Investment Pipeline outlines the number and value of significant infrastructure projects in the three main sectors of Australia’s tourism industry, namely Accommodation; Arts, Recreation and Business Services; and Aviation.

Tourism businesses

Estimates the number of businesses in Australia’s tourism industry and includes data on the size of tourism-related businesses, and their main activities and locations across Australia.

Tourism forecasts

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Visitor Economy Facts and Figures

A quick and easy reference for the major factors affecting Australia’s visitor economy.

Tourism labour force statistics

Quarterly labour force report analysing changes in the number of filled tourism jobs.

Tourism workforce report

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Business events data

Business events are important contributors to Australia’s visitor economy. Having the latest business events data helps to measure industry performance and is critical for growth.   

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Australian tourism statistics 2023

How many tourists come to australia each year, what was the most common reason for travelling to australia, what country visits australia the most, how much money does australia make from tourism each year, most visited states in australia.

Tourism in Australia suffered a massive blow during the COVID-19 pandemic, but the industry looks to be recovering steadily since border restrictions were scrapped almost two years ago, in November 2021.

In 2023, the number of travellers coming to Australia has rebounded significantly since the lows of 2020, but the latest tourism statistics indicate we haven't quite seen pre-pandemic crowds just yet. 

Here you’ll find Australian tourism facts and statistics, like how many people visit Australia each year, which Australian cities are the most popular tourist destinations and Australian tourism industry statistics.

Quick stats

• Australian tourism has made a significant rebound but hasn’t reached pre-pandemic levels yet
• In 2023, 5.8 million international travellers arrived in Australia (391% growth year-on-year)
• The top three most common tourists to Australia are from New Zealand, the USA, the UK, and India
• In 2023, the most common reason for international travellers coming to Australia was to visit friends and relatives
• Sydney, Brisbane, and Melbourne are the top 3 most visited regions for international visitors.

As of June 2023, Tourism Australia says that there were approximately 5.8 million international visitors to our shores. This is a year-on-year growth of over 391%, illustrating the significant recovery of Australia’s tourism industry. 

However, current numbers still have a way to go to reach 2019's 8.7 million arrivals.

According to Tourism Research Australia (TRA), the year ending March 2023 brought 4.6 million international visitors into the country. That’s about 58% of what we saw in March 2020, right before the pandemic began its slow crawl across Australia and we shut our borders.

In the decade preceding the 2020 pandemic, there was a yearly average of about 6.7 million international visitors to Australia, according to TRA data .

Advertiser disclosure

Short-term arrival stats from the Australian Bureau of Statistics (ABS) illustrate the difference between pre-pandemic and post-pandemic travel to Australia, despite being a year out from border restrictions being removed. 

According to the ABS, the number of short-term international arrivals (those travelling in Australia for less than 12 months) for June 2023 was 17.9% lower than in September 2019, pre-Covid pandemic.

The largest source of international arrivals to Australia, according to the ABS, was New Zealand, accounting for 20% of all arrivals.

Visiting friends and relatives was the most common reason for travelling to Australia in 2023, according to Tourism Australia . 

Travellers' most common purpose for visiting Australia in 2023 was:

• Visiting friends and relatives (43%)
• Holiday (31.8%)
• Business (8.9%)
• Education (6.5%)
• Others (6%)
• Employment (3.9%).

However, the picture was different in 2019, with the most common reason for visiting Australia being holidays (46%), followed by visiting friends and relatives (30%). During 2022, only 16.9% of international travellers came to the country for holidays, with the bulk of arrivals coming to see friends and family (55.5%).  

Now that the worst of the pandemic is but an uncomfortable memory for most, the gap between those coming to the country to see friends and family and those coming to have a holiday is growing smaller.

According to TRA, the most common tourists to Australia in the year ending June 2023 were from New Zealand, with approximately 1.1 million visitors from across the ditch. 

The top 5 countries which visited Australia the most in 2023 were:

• New Zealand (1,082,400) 
• United Kingdom (573,600)
• United States of America (557,300)
• India (383,400)
• Singapore (357,400). 

Tourism was once Australia’s fourth-largest exporting industry . It contributed to 8.2% of the country’s export earnings in 2018-19, making it a very valuable industry for Australia’s economy. 

In total, Australia generated $60.8 billion in 2018-19 as a result of both domestic and international tourism, as per Tourism Australia. In that same financial year, international visitors spent $44.6 billion in Australia. 

Furthermore, tourism isn’t only important for the major Australian cities. Tourism Australia found that 44 cents of every dollar spent was in regional areas.

Two-year holiday hiatus due to the pandemic

In the two years prior to 2022, our tourism industry took a very real hit. It generated far less money and employed far fewer people than usual.

For example, the number of people employed in tourism over the 2020-21 financial year fell by over 20% (129,200 jobs) to 507,000 employees.  

Gross domestic product has been down, too. The latest Tourism Satellite Account released by the ABS recorded a fall of 38% in tourism GDP over the 2020-21 financial year. The release also shows that tourism’s contribution to Australia’s GDP dropped from 2.6% to 1.6% from the previous financial year. 

In the post-pandemic world, fewer tourists has obviously meant few dollars spent on our shores. For example, international tourists to Australia spent a comparatively low $7.5 billion in the financial year to June 2022 – 24% of pre-Covid levels according to TRA .

Most tourists go to New South Wales when they visit Australia, according to the Overseas Arrivals and Departures data from the ABS. 

NSW accounted for 37.5% of all short-term visitors state or territory of stay while in Australia, followed by Victoria (24.4%), Queensland (22.8%), Western Australia (9.3%), South Australia (2.9%), the Australian Capital Territory (1.3%), Tasmania (0.9%), then the Northern Territory (0.9%).

Feeling inspired to go globetrotting after much of the world’s borders have reopened? Check out Mozo’s travel insurance guides and news for the latest travel inspiration and updates.

Jack is RG146 Generic Knowledge certified, with a Bachelor of Communications in Creative Writing from UTS, and uses his creative flair to cut through the financial jargon and make home loans, insurance and banking interesting. His reader-first approach to creating content and his passion for financial literacy means he always looks for innovative ways to explain personal finance. Jack's research and explanations have been featured in government publications, and his work is regularly featured alongside major publications in Google's Top Stories for Insurance.

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• Travel Destinations
• Australia & South Pacific

How Much Money Does Australia Make From Tourism

Published: December 12, 2023

Modified: December 28, 2023

by Avrit Gonsalves

• Hotel Reviews
• Plan Your Trip

Introduction

Australia, known for its stunning landscapes, diverse wildlife, and vibrant cities, has long been a popular tourist destination. With its sunny beaches, iconic landmarks like the Sydney Opera House and the Great Barrier Reef, and unique wildlife experiences, it’s no wonder that people from all over the world flock to the land down under.

But tourism in Australia is not just about breathtaking scenery and famous attractions. It plays a significant role in the country’s economy, contributing billions of dollars annually. From creating jobs to promoting local businesses, tourism has become a vital industry that drives economic growth and development.

In this article, we will delve into the various aspects of tourism in Australia, including its economic importance, revenue sources, and the impact of domestic and international visitors. We will also explore some of the major tourist destinations and government initiatives aimed at promoting tourism. Finally, we will discuss the challenges and opportunities the industry faces as it continues to evolve.

So, let’s take a closer look at how much money Australia makes from its flourishing tourism sector and the factors that contribute to its success.

Importance of Tourism in Australia’s Economy

Tourism plays a crucial role in Australia’s economy, contributing significantly to its GDP and employment. It is one of the largest sectors, supporting businesses across various industries such as hospitality, transportation, retail, and entertainment.

One of the primary reasons for tourism’s importance is its ability to generate revenue. In 2019, tourism contributed approximately AUD 60 billion in export earnings, making it one of the highest export earners for the country. This revenue helps stimulate economic growth and supports various government initiatives.

Moreover, tourism creates employment opportunities for millions of Australians. From hotel staff and tour operators to restaurant and retail workers, the industry supports a wide range of jobs, both directly and indirectly. The employment opportunities provided by tourism are particularly important in regional areas, where tourism is often a significant driver of local economies.

Additionally, tourism contributes to the development of infrastructure and amenities. To keep up with the increasing number of tourists, Australia invests in building and upgrading transportation systems, accommodation, and tourist facilities. These developments not only cater to tourists but also improve the quality of life for local residents.

Besides the economic benefits, tourism also promotes cultural exchange and understanding. As people from different countries visit Australia, they have the opportunity to learn about its rich indigenous heritage, cultural traditions, and diverse communities. This cultural exchange fosters mutual respect and appreciation, promoting a more inclusive and tolerant society.

Overall, the importance of tourism in Australia’s economy cannot be underestimated. It drives economic growth, creates jobs, supports local businesses, and promotes cultural understanding. As tourism continues to flourish, it is crucial to nurture and sustain this industry to reap its long-term benefits.

Breakdown of Tourism Revenue Sources

The revenue generated from tourism in Australia comes from a variety of sources, both domestic and international. Let’s take a closer look at the breakdown of these revenue sources:

1. Domestic Tourism:

Domestic tourism refers to travel and spending by residents within their own country. It plays a significant role in Australia’s tourism revenue. Australians have a strong culture of traveling domestically, exploring different states and territories. Domestic tourists contribute to the economy through spending on accommodation, dining, attractions, and transportation. In recent years, the rise of weekend getaways, road trips, and experiential travel has further boosted domestic tourism in Australia.

2. International Tourism:

International tourism is another crucial revenue source for Australia. Visitors from overseas come to experience the country’s unique natural beauty, vibrant cities, and cultural offerings. These international visitors contribute to the economy through their spending on accommodation, dining, shopping, tours, and activities. The weak Australian dollar often makes it an attractive destination for international tourists, as they get more value for their money.

3. International Education:

Education tourism, driven by international students studying in Australia, also contributes significantly to the tourism revenue. Australia is a highly sought-after destination for international students, with its world-class universities and high-quality education system. These students not only pay tuition fees but also spend on accommodation, living expenses, and leisure activities, contributing to the overall tourism revenue.

4. Business Travel:

Australia’s thriving business sector attracts a substantial number of international travelers for conferences, meetings, and corporate events. Business travelers spend on accommodation, dining, transportation, and other services, boosting the tourism revenue. Additionally, these business trips often lead to future leisure travel as travelers may extend their stay to explore the country.

Overall, the revenue generated from tourism in Australia is a combination of domestic tourism, international tourism, international education, and business travel. This diversified revenue base helps to sustain the tourism industry and contributes to the country’s economic growth and development.

Contribution of Domestic Tourism

Domestic tourism plays a significant role in driving the tourism industry in Australia. It refers to travel and spending by residents within their own country. Let’s explore the contribution of domestic tourism to Australia’s economy:

1. Economic Impact:

Domestic tourism is a major revenue generator for Australia. Australians have a strong appetite for travel and exploring their own backyard. They contribute to the economy through spending on accommodation, transportation, dining, shopping, and various tourism-related activities. The money spent by domestic tourists not only supports local businesses but also creates employment opportunities across different sectors.

2. Regional Development:

Domestic tourism is particularly beneficial for regional areas of Australia. These regions often rely heavily on tourism to sustain their local economies. With many Australians opting for road trips, weekend getaways, and holidays in rural and remote locations, domestic tourism helps spread the economic benefits beyond major cities. It supports local businesses such as hotels, restaurants, tour operators, and artisans, providing a much-needed boost to regional communities.

3. Cultural Exchange:

Domestic tourism also promotes cultural exchange within Australia. As Australians travel to different states and territories, they have the opportunity to experience the unique cultural heritage and traditions of different regions. This fosters a sense of national identity and appreciation for the diverse landscapes and cultures across the country.

4. Environmental Stewardship:

Domestic tourism encourages Australians to appreciate and cherish their natural environment. With the abundance of national parks, protected areas, and World Heritage sites, domestic travelers have the opportunity to connect with nature and explore the country’s ecological wonders. This promotes environmental stewardship and encourages sustainable practices, ensuring the preservation of Australia’s pristine landscapes for future generations.

5. Support for Small Businesses:

Domestic tourism provides a platform for small businesses to thrive. Whether it’s boutique accommodation, local cafes, or unique experiences, domestic travelers often seek out authentic and locally-owned businesses. This creates opportunities for entrepreneurs and contributes to the diversity and vibrancy of the tourism industry.

Overall, domestic tourism is a vital component of Australia’s tourism industry. It not only contributes to the economy but also supports regional development, promotes cultural exchange, encourages environmental stewardship, and fosters the growth of small businesses. Embracing domestic tourism is key to ensuring the continued success and sustainability of the Australian tourism sector.

Impact of International Tourism

International tourism plays a significant role in shaping Australia’s economy and culture. The influx of international visitors brings numerous benefits and impacts to the country. Let’s explore the impact of international tourism in Australia:

1. Economic Boost:

International tourism contributes significantly to Australia’s economy. The influx of international visitors brings in foreign exchange through their spending on accommodation, dining, shopping, transportation, and attractions. This revenue injection supports local businesses, stimulates job creation, and drives economic growth. In 2019 alone, international tourism contributed billions of dollars to the country’s GDP, making it a crucial component of Australia’s economy.

2. Job Creation:

The growth of international tourism leads to job creation in various sectors. From tour operators and hospitality staff to retail workers and transportation providers, the tourism industry creates employment opportunities for a wide range of skilled and unskilled workers. This is particularly beneficial for local communities, especially in regions heavily reliant on tourism.

International tourism promotes cultural exchange and understanding. As visitors from different countries explore Australia, they learn about the country’s rich history, vibrant indigenous cultures, and diverse communities. This cultural exchange fosters mutual respect, appreciation, and a deeper understanding of different cultures, contributing to a more inclusive and tolerant society.

4. Promotion of Australian Identity:

International travelers often have a positive impact on the promotion of Australia’s identity and image. They share their experiences, photos, and stories with their friends and families back home, creating an organic form of marketing and positive word-of-mouth. This exposure helps in attracting more international visitors to the country and further boosting tourism revenue.

5. Infrastructure Development:

The presence of international tourists drives the development and improvement of infrastructure and amenities. To accommodate the growing number of visitors, investments are made in expanding airports, enhancing transportation networks, and upgrading tourist facilities. These infrastructure developments not only benefit tourists but also improve the quality of life for local residents.

6. Conservation and Environmental Awareness:

International tourism raises awareness about the importance of conservation and environmental sustainability in Australia. Visitors come to experience the country’s unique natural wonders, such as the Great Barrier Reef and national parks, and gain a firsthand understanding of the need to protect these fragile ecosystems. This awareness can lead to increased conservation efforts and the adoption of sustainable practices in the tourism industry.

7. International Diplomacy:

International tourism plays a role in fostering international diplomacy and relationships. As visitors from different countries visit Australia, interactions and cultural exchanges occur, promoting goodwill and understanding between nations. This can have positive implications for international cooperation, trade, and diplomacy.

The impact of international tourism on Australia is undeniable. It brings economic benefits, creates employment opportunities, promotes cultural exchange, fosters environmental awareness, and enhances Australia’s global identity. As the country continues to attract international visitors, it is essential to manage tourism sustainably and ensure a positive and enriching experience for both tourists and local communities.

Major Tourist Destinations in Australia

Australia is blessed with a diverse array of tourist destinations that capture the imagination of visitors from around the world. From iconic landmarks to stunning natural wonders, here are some of the top tourist destinations in Australia:

Sydney, the largest city in Australia, is a must-visit destination. Its most famous landmark, the Sydney Opera House, is recognized worldwide. Visitors can explore the vibrant neighborhoods of Darling Harbour and Circular Quay, relax on the picturesque beaches of Bondi and Manly, and take in panoramic views from the Sydney Harbour Bridge.

2. Great Barrier Reef:

The Great Barrier Reef, located off the coast of Queensland, is one of the world’s most remarkable natural wonders. It is the largest coral reef system, home to an abundance of marine life. Visitors can snorkel, dive, or take a scenic flight to witness the breathtaking beauty of the coral gardens and vibrant marine ecosystem.

3. Uluru-Kata Tjuta National Park:

Located in the heart of Australia’s Red Centre, Uluru-Kata Tjuta National Park is home to the iconic Uluru (Ayers Rock) and Kata Tjuta (The Olgas). These massive sandstone formations hold deep cultural significance for the indigenous Anangu people. Visitors can witness the stunning sunrise or sunset over Uluru and learn about the rich Aboriginal culture.

4. Melbourne:

Melbourne, known for its vibrant arts scene, coffee culture, and multicultural atmosphere, is a cultural hub that offers a mix of historic and modern attractions. Visitors can explore the laneways adorned with street art, visit internationally renowned museums, enjoy the bustling food and wine scene, and attend sporting events at the iconic Melbourne Cricket Ground.

5. Great Ocean Road:

The Great Ocean Road is a scenic coastal drive in Victoria, renowned for its stunning coastal landscapes and iconic landmarks. Visitors can marvel at the Twelve Apostles, limestone stacks rising from the Southern Ocean, visit picturesque seaside towns like Lorne and Apollo Bay, and witness the dramatic cliffs and pristine beaches along the way.

6. Kakadu National Park:

Kakadu National Park, located in the Northern Territory, is a UNESCO World Heritage site and showcases Australia’s rich natural and cultural heritage. Visitors can explore ancient Aboriginal rock art, cruise along rivers teeming with wildlife, witness magnificent waterfalls, and immerse themselves in the diverse landscapes of this pristine wilderness.

7. Brisbane and the Gold Coast:

Brisbane, the capital of Queensland, offers a vibrant city experience with its thriving cultural scene and beautiful riverside setting. Just south of Brisbane lies the Gold Coast, famous for its stunning beaches, theme parks, and vibrant nightlife. Visitors can enjoy adventurous water sports, visit wildlife sanctuaries, and indulge in shopping and entertainment.

These are just a few examples of the many amazing tourist destinations in Australia. From natural wonders to bustling cities and cultural experiences, Australia offers something for every traveler, inviting them to explore its diverse landscapes and immerse themselves in unique experiences.

Government Initiatives to Promote Tourism

The Australian government recognizes the importance of tourism and has implemented various initiatives to promote and support the industry. These initiatives aim to attract international visitors, boost domestic tourism, enhance visitor experiences, and ensure the long-term sustainability of the sector. Here are some significant government initiatives to promote tourism:

1. Tourism Australia:

Tourism Australia, the government agency responsible for promoting Australia as a tourism destination, runs various marketing campaigns both domestically and internationally. These campaigns showcase the country’s unique attractions, natural wonders, cultural experiences, and indigenous heritage to inspire travelers to visit Australia.

2. Working Holiday Visa Program:

Australia’s Working Holiday Visa program encourages young travelers from eligible countries to explore the country while working and studying. This initiative not only promotes tourism but also contributes to the country’s labor force by providing much-needed workforce support in various sectors, especially in regional areas.

3. Infrastructure Development:

The government invests in infrastructure development to enhance visitor experiences and support tourism growth. This includes upgrading airports, expanding transportation networks, improving national parks and tourist facilities, and investing in cultural and heritage sites. These infrastructure developments provide world-class facilities and amenities for both domestic and international tourists.

4. Tourism Research and Data Analysis:

The government places importance on research and data analysis to understand visitor trends, preferences, and market conditions. This data helps in shaping strategic marketing initiatives, identifying target markets, and adapting tourism offerings to meet visitor demands. It also helps in monitoring the industry’s performance and planning future tourism policies and investments.

5. Regional Tourism Support:

The government provides funding and support to regional tourism organizations to promote and develop tourism in their respective areas. These initiatives aim to spread the tourism benefits to regional communities, creating employment, fostering economic growth, and showcasing unique local attractions and experiences.

6. Indigenous Tourism Development:

The Australian government recognizes the cultural and economic significance of indigenous tourism and supports initiatives that promote and showcase indigenous experiences. This includes investing in indigenous-owned tourism businesses, preserving cultural sites, and creating employment opportunities for indigenous communities through tourism ventures.

7. Tourism Accreditation and Quality Assurance:

The government encourages tourism businesses to meet accreditation and quality standards through programs such as the Australian Tourism Accreditation Program. This ensures that visitors can have confidence in the quality and reliability of tourism services and experiences in Australia, enhancing their overall satisfaction.

These government initiatives, along with partnerships with industry stakeholders, aim to position Australia as a competitive and sustainable tourism destination. By promoting Australia’s unique offerings, investing in infrastructure, supporting regional tourism, and ensuring quality experiences, the government plays a vital role in the growth and success of the tourism industry.

Challenges and Opportunities in the Tourism Sector

The tourism sector in Australia faces a range of challenges, but it also presents numerous opportunities for growth and development. Let’s delve into some of the key challenges and opportunities in the tourism industry:

Challenges:

Opportunities:

Tourism plays a vital role in Australia’s economy, driving growth, creating jobs, and contributing billions of dollars in revenue. The country’s diverse landscapes, iconic landmarks, and rich cultural heritage make it a popular destination for both domestic and international travelers. However, the tourism sector also faces various challenges that require strategic approaches and collaborative efforts.

Despite challenges such as seasonality, sustainability, and infrastructure, the tourism industry in Australia holds immense opportunities for growth. The growing Asian tourism market, indigenous tourism experiences, adventure and eco-tourism, and investment in regional areas present avenues for attracting diverse visitors and stimulating economic development.

The Australian government’s initiatives to promote tourism, such as Tourism Australia’s marketing campaigns, the Working Holiday Visa program, and support for regional tourism, demonstrate a commitment to the sector’s growth and sustainability. Continued investment in infrastructure, research, and quality assurance can further enhance the visitor experience and ensure Australia remains a competitive and desirable destination.

To maximize the benefits of tourism, it is crucial to balance economic development with environmental sustainability and the preservation of cultural heritage. Responsible tourism practices, community engagement, and the promotion of indigenous tourism can foster a more inclusive and respectful industry.

As Australia continues to evolve as a leading tourism destination, it is important for industry stakeholders, government bodies, and local communities to collaborate and strategize collectively. By working together, addressing challenges, and seizing opportunities, Australia can maintain its position as an attractive and sustainable tourism destination for generations to come.

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Home » News » Latest figures reveal $33.7bn loss for Australia’s tourism industry

Latest figures reveal $33.7bn loss for Australia’s tourism industry

The financial implications of the coronavirus pandemic on Australia’s tourism industry during the first half of 2020 have been revealed.

Australian tourism has seen overall losses of $33.7 billion for January to June 2020, according to an early release summary on international tourism results by Tourism Research Australia.

Of this, $12 billion (53 per cent) has been lost on international tourism, and $21.7 billion on domestic tourism, including $17.7 billion from overnight travel and $4 billion for day travel.

In the June quarter, fewer than 10,000 international visitors arrived in Australia, compared with 1.9 million during the same period in 2019.

The results of the latest National Visitor Survey also reflect the enormous impacts of the 2019-20 bushfire season which, on top of the impacts of the coronavirus pandemic, contributed to losses of $4 billion in spending on domestic day trips, from January to June 2020.

Overnight trips involving indoor activities were particularly affected during the June quarter 2020, with visitation to arts, heritage, and social activities falling by more than 90 per cent. In addition, trips that included eating out and dining at restaurants were down by 84 per cent.

Tourism Research Australia noted that this pattern is consistent with travellers preferring to drive to regional areas over visits to capital cities during the quarter: overall, capital cities saw a far more significant fall in domestic overnight visits (78 per cent) than regional areas (61 per cent).

On the flipside, overnight trips involving nature and other outdoor activities fared better. The decline ranged between 60 per cent and 75 per cent for trips with visits to farms, national parks and beaches.

Furthermore, the transport used for domestic overnight trips changed significantly in the June quarter 2020.

Travel by self-drive vehicle accounted for over 90 per cent (9.2 million) of all domestic overnight trips. This was up from 73 per cent on the June quarter of 2019. In contrast, domestic overnight trips that included air travel fell from 24 per cent to six per cent.

Visitor nights fell by 15 per cent for the year ending June 2020, and 62 per cent (or 64 million) for the June quarter 2020. These falls were much larger for the commercial accommodation sector in June quarter 2020.

The Australian Tourism Industry Council’s executive director, Simon Westaway, said the figures highlight the depth of the impacts of the coronavirus pandemic.

“These are naturally terrible results as Australian tourism faced the then full-frontal assault of the first COVID-19 wave that swept the country,” he said.

“The effective shutdown of our international visitor market and the host of state and territory border closures translated into incredibly dramatic slumps in visitor movement and spend.

“These tourism visitors and spend figures are now the benchmark for sustained government funding support and to develop more partnerships with our industry and tourism regions.”

Westaway said jobs in tourism had also plummeted, with as few as one in 22 Australians now employed in the travel industry – as opposed to the pre-pandemic figure of one in 12.

“Hundreds of thousands of real jobs have been lost and we must build them back,” he said.

The release of Tourism Research Australia’s latest National Visitor Survey comes as Australia prepares to welcome Kiwis again, with both the Australian and New Zealand governments negotiating a deal to allow for a one-way trans-Tasman travel ‘bubble’ to take-off from 16 October.

It also comes as Queensland and Tasmania prepare to ease their border restrictions.

Featured image source: iStock/pixdeluxe

Email the Travel Weekly team at [email protected]

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