In an era where economic constraints and a global slowdown loom large, Australia’s tourism sector stands as a beacon of resilience and optimism. Forecasted to return to its pre-pandemic vigour by 2024, the industry is witnessing an unprecedented surge in travel activities from domestic and international fronts.
Adele Labine-Romain, the national tourism leader at Deloitte, unveiled the latest edition of Deloitte Access Economics’ Tourism Market Outlook, painting a picture of a sector that is not just bouncing back but flourishing. “Australians, known for their wanderlust, are showing an unrelenting commitment to travel, and international visitors are increasingly choosing Australia as their preferred destination,” Labine-Romain stated. This resurgence is underscored by a remarkable 20% increase in overall visitor expenditure since 2019, reaching a staggering $175 billion.
Domestic travel, the backbone of this recovery, has nearly matched its pre-pandemic levels. Undeterred by the rising cost of living, Australians are passionately exploring their homeland, contributing $28.4 billion in the September 2023 quarter alone, a significant jump from 2019 figures. The allure of overseas travel remains strong among Australians, with outbound travel nearly back to its former glory.
The country’s vibrant events scene is a significant drawcard. Concert tours by global icons like Ed Sheeran, major sporting spectacles like the FIFA Women’s World Cup, and the upcoming Taylor Swift tour have been pivotal in driving domestic travel, often leading to frenzied booking activities.
International travel, though slower to rebound, is catching up swiftly. The September 2023 data revealed an 80% recovery in trip volumes and a 102% bounce back in spending, buoyed by increased travel costs. The revival of international aviation capacity, poised to reach 90% of pre-pandemic levels by year-end, has been instrumental in this upturn. “With China reopening and the reinstatement of Australia’s Approved Destination Status, we’ve seen a steady increase in Chinese visitors, reinforcing Australia’s position as a top-tier global destination,” Labine-Romain added.
Looking ahead, the prospects for 2024 and beyond are bright. The tourism sector is poised to outpace the broader Australian economy’s growth, with travel intentions remaining robust despite inflationary pressures and geopolitical uncertainties. “Australians are reallocating their discretionary spending, with travel and leisure remaining a top priority,” Labine-Romain observed.
Forecasts suggest a 5.5% growth in domestic overnight trips in 2024, aligning with pre-pandemic levels, followed by a consistent 5% annual growth to 2026. International arrivals are expected to surpass pre-pandemic figures, with a projection of 9.7 million in 2024 and a yearly growth rate of 6.8%, reaching 11 million by 2026.
As the festive season and summer holidays approach, Australians are gearing up to travel extensively, tapping into their savings to celebrate and reconnect. This trend underscores a collective spirit prioritising exploration and connection, heralding a new era of travel and economic resilience.
Written by: Charmaine Lu
