Australia Travel & Tourism Market, By Type (Domestic, Inbound, Outbound), By Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Others), By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others), By Booking Type (Travel Companies, Travel Agencies, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Australia Travel & Tourism market was valued at USD 16.17 billion in 2024 and is anticipated to grow USD 18.42 billion by 2030 with a CAGR of 2.25% during the forecast period. Australia's travel and tourism market is a vital contributor to the country's economy, supported by its diverse natural attractions, iconic landmarks, and world-renowned experiences. The sector benefits from strong domestic tourism, bolstered by locals exploring regional destinations, as well as international visitors drawn to Australia's beaches, wildlife, and cultural festivals. Government initiatives promoting tourism infrastructure, marketing campaigns, and improved connectivity are further enhancing growth. Eco-tourism, adventure travel, and indigenous cultural experiences are gaining popularity, reflecting evolving traveler preferences. The industry’s recovery from the pandemic has been steady, with sustainable tourism and digital innovations playing a central role in shaping future developments. International visitor spending in Australia is projected to hit USD 39 billion, marking a record high and a nearly 22% increase over 2024. This sharp rise highlights the strong rebound in global travel demand and Australia’s growing appeal as a top-tier destination.

Key Market Drivers

Diverse Natural Attractions and Unique Experiences

Australia’s rich and diverse natural landscapes are among the most significant drivers of its travel and tourism market. The country is home to internationally renowned attractions such as the Great Barrier Reef, Uluru, the Daintree Rainforest, and the Twelve Apostles along the Great Ocean Road. These iconic natural wonders not only attract millions of international tourists annually but also appeal to domestic travelers seeking adventure and exploration. Australia’s unique wildlife, including kangaroos, koalas, and marine life, offers experiences that are rare in other parts of the world, making it a top bucket-list destination. Adventure tourism, such as snorkeling, diving, surfing, hiking, and camping in national parks, is a growing segment. Moreover, destinations like Tasmania and the Kimberley region in Western Australia are becoming increasingly popular for eco-tourism and wilderness experiences. These varied landscapes and outdoor activities offer year-round travel opportunities, boosting tourism across different regions and seasons.

Strong Government Support and Infrastructure Development

The Australian government plays a pivotal role in supporting and developing the travel and tourism sector. Through Tourism Australia and state-level tourism bodies, the government actively promotes the country as a premier travel destination through strategic marketing campaigns like “Come and Say G’day” and “There’s Nothing Like Australia.” These initiatives aim to attract high-value international tourists while encouraging domestic travel. As of June 2024, the number of tourism-related businesses in Australia rose to 360,202, marking an increase of 2,588 businesses (0.7%) compared to 355,570 in June 2023. This growth highlights the continued recovery and resilience of the tourism sector, driven by rising travel demand, strong domestic tourism activity, and supportive government policies.

In addition to promotion, significant investments are being made in tourism infrastructure. The government is focused on improving transport connectivity, including upgrades to airports, roads, and public transport systems that facilitate easier access to regional and remote areas. There is also a push towards digital transformation in tourism services, such as real-time visitor information platforms and virtual tour options, which enhance the tourist experience. Furthermore, funding for indigenous tourism initiatives and regional tourism grants ensures equitable development across different parts of the country. These supportive policies and developments strengthen the foundation of the tourism industry and foster long-term growth.

Rise in Domestic Tourism and Regional Travel

In recent years, especially following the COVID-19 pandemic, there has been a marked increase in domestic tourism in Australia. Travel restrictions and safety concerns prompted many Australians to explore their own backyard, leading to a surge in local travel. This shift has created new opportunities for lesser-known and regional destinations to emerge as popular travel spots. Road trips, caravan holidays, and staycations have become increasingly common, supported by a well-developed hospitality and lodging network across the country. In 2023–24, tourism’s gross domestic product (GDP) in Australia reached USD 78.1 billion at current prices, reflecting the sector’s strong recovery and growing contribution to the national economy. This growth is driven by several key factors, including a surge in domestic travel, the revival of international tourism, and increased spending by high-value travelers.

Local tourism operators have adapted by offering unique, personalized experiences tailored to domestic travelers. The growth in regional tourism also contributes to the local economy, generating employment and encouraging investment in smaller communities. Tourism campaigns and state travel vouchers introduced by various regional governments have further incentivized Australians to travel within the country. This growing domestic market provides stability to the overall tourism sector and reduces reliance on international arrivals, especially during global disruptions.

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Key Market Challenges

Labor Shortages and Workforce Sustainability

One of the most pressing challenges in the Australian travel and tourism industry is the ongoing shortage of skilled labor. The sector heavily relies on a diverse and flexible workforce, including hospitality staff, tour guides, travel agents, and transport operators. However, the COVID-19 pandemic disrupted the industry significantly, leading to mass layoffs, border closures, and migration pauses that caused many workers to exit the sector. As the industry rebounds, many businesses are struggling to fill critical roles, particularly in regional and remote areas where access to labor is even more constrained.

The shortage is further aggravated by Australia's reliance on international workers, such as working holidaymakers and temporary migrants, who traditionally fill seasonal or part-time tourism jobs. Although international borders have reopened, the return of these workers has been slower than anticipated. Moreover, the competition from other industries, such as retail and construction, offering more stable employment, has made it harder for the tourism sector to retain talent. This labor gap is impacting service quality, limiting operating hours, and reducing the overall capacity of businesses to cater to increasing demand.

Overdependence on International Markets and External Shocks

While international tourism is a major revenue stream for Australia, heavy reliance on overseas visitors also makes the market vulnerable to external shocks. The COVID-19 pandemic highlighted this dependency when border closures halted international arrivals, severely impacting tourism revenue and causing widespread business closures. Even after the borders reopened, recovery has been uneven, with fluctuations in traveler confidence, changing health regulations, and geopolitical tensions affecting tourist flows.

Australia’s distance from key markets like Europe and North America, along with high travel costs, can be deterrents during periods of global economic uncertainty. Events such as global recessions, fuel price hikes, airline disruptions, and diplomatic tensions—such as strained relations with China—can reduce visitor numbers significantly.

Key Market Trends

Sustainability and Eco-Tourism

Sustainability has become a central focus in the travel decisions of both consumers and operators in Australia. With rising awareness of environmental issues, many travelers are seeking out eco-friendly experiences, accommodations, and transport options that minimize their carbon footprint and support conservation. Australia’s unique biodiversity and vast natural landscapes make it a prime location for eco-tourism, including activities such as wildlife watching, marine conservation tours, and visits to protected parks.

Tourism operators are increasingly adopting green certifications, investing in renewable energy, reducing single-use plastics, and incorporating sustainability into tour packages. Destinations like Tasmania and Kangaroo Island are positioning themselves as leaders in sustainable travel. Indigenous tourism experiences, which often emphasize environmental stewardship and traditional ecological knowledge, also align well with this trend.

Rise of Digitalization and Contactless Travel

Technology and digital innovation are transforming the travel experience across Australia. From planning to booking and on-the-go navigation, travelers increasingly rely on digital tools. Travel apps, virtual tours, and AI-powered booking platforms are helping tourists research destinations, compare prices, and customize their itineraries. The use of mobile check-ins, digital hotel keys, and contactless payments has become standard practice, especially in the post-pandemic landscape where hygiene and efficiency are top priorities.

Virtual and augmented reality experiences are also gaining traction, allowing potential visitors to explore destinations from their homes before booking. Regional tourism operators are leveraging social media and digital storytelling to reach broader audiences, especially younger travelers who prefer digital-first experiences.

Segmental Insights

Type Insights

Domestic tourism is the dominating segment in Australia’s travel and tourism market, driven by a strong local travel culture and diverse regional attractions. Australians frequently explore their own country, supported by excellent infrastructure, road networks, and a wide range of travel experiences, from coastal getaways to outback adventures. The COVID-19 pandemic further accelerated this trend, as travel restrictions led to increased intrastate and interstate travel. Government-backed tourism campaigns and incentives have also played a crucial role in promoting local exploration. As international travel remains volatile, domestic tourism continues to provide stability and sustains the economic contribution of the sector.

Booking Type Insights

Travel companies are the dominating segment in Australia’s travel and tourism market, playing a vital role in organizing and facilitating travel experiences for both domestic and international tourists. These companies offer comprehensive services, including tour packages, accommodation bookings, transportation, and guided experiences, making travel more convenient and accessible. Their strong industry networks and destination expertise allow them to curate tailored itineraries that appeal to a wide range of travelers. With the rise in online platforms and digital booking tools, many traditional and online travel agencies have expanded their reach. Their dominance is reinforced by consumer trust, convenience, and value-added services.

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Regional Insights

Australia Capital Territory (ACT) and New South Wales (NSW) are the dominating regions in Australia’s travel and tourism market due to their rich cultural heritage, iconic landmarks, and well-developed infrastructure. Sydney, the capital of NSW, serves as a major international gateway, attracting millions of tourists with attractions like the Sydney Opera House, Harbour Bridge, and Bondi Beach. The ACT, home to the national capital Canberra, draws visitors with its national museums, galleries, and political institutions. These regions benefit from strong domestic and international connectivity, frequent events and festivals, and a wide variety of accommodation, dining, and recreational options.

Recent Development

• In Oct 2024, The World Travel & Tourism Council (WTTC) has launched Together in Travel, a global initiative aimed at empowering small and medium enterprises (SMEs) in the travel sector by providing free access to tools, networking, training, and resources.

• In May 2025, AirAsia and Tourism Western Australia have launched a strategic partnership to boost regional travel by offering USD 93131 in flight discounts for Kuala Lumpur–Perth routes, promoting WA through the “Walking On A Dream” campaign.

• In March 2025, Tourism Australia has launched a new broadcast series, Experience Australia, broadcasting in 58 countries and reaching over 96 million households. Narrated by Rachel Griffiths, it showcases diverse experiences from cultural tours to agritourism and wildlife to inspire international travelers.

• In Nov 2024, Tourism Australia has rolled out a four-part social content series featuring former cricketer David Warner, showcasing his favourite destinations in Sydney, Melbourne, and the Gold Coast to warmly welcome Indian travellers.

Key Market Players

• Qantas Airways Limited
• Virgin Australia Airlines Pty Ltd
• Marriott International, Inc.
• Hilton International Australia Pty Limited
• Accor Australia & New Zealand Hospitality Pty Limited
• Intro Travel Pty Ltd.
• G Adventures Pty Ltd
• Ultimate Adventure Travel Pty Ltd.
• Intrepid Travel Australia Pty Ltd.
• Bucket List Group Travel

Report Scope:

In this report, the Australia Travel & Tourism Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Travel & Tourism Market, By Type:

o   Domestic

o   Inbound

o   Outbound

• Australia Travel & Tourism Market, By Service Offering:

o   Ticket Reservation

o   Hotel Booking

o   Holiday/Tour Packages

o   Others

• Australia Travel & Tourism Market, By Purpose of Visit:

o   Business

o   Leisure & Recreation

o   Education

o   Medical

o   Social Activity

o   Others

• Australia Travel & Tourism Market, By Booking Type:

o   Travel Companies

o   Travel Agencies

o   Online

o   Others

• Australia Travel & Tourism Market, By Region:

o   Australia Capital Territory & New South Wales

o   Northern Territory & Southern Australia

o   Western Australia

o   Queensland

o   Victoria & Tasmania

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Australia Travel & Tourism Market.

Available Customizations:

Australia Travel & Tourism Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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