New South Wales has once again shown the rest of Australia who wears the tourism crown, with visitor spending surging to a record-breaking $55.9 billion in the year to June 2025. Tourism Research Australia (TRA) has run the ruler over the numbers, and the Minns Labor Government is popping the champagne and not just in Sydney’s harbour-view boardrooms.
That $55.9 billion represents a 5.7 per cent jump on the previous year. Even more impressive, international visitor expenditure soared by 15.1 per cent to $13.9 billion, proving that while the dollar might be weak, New South Wales remains strong on the world stage.
This news makes rivals in Melbourne and Brisbane grind their teeth. NSW clocked up 124.6 million visitors, 9.7 million more than Victoria and a cool 44.8 million more than Queensland. One imagines the Sunshine State will need more than a few lamingtons to sweeten that result.
International Markets Roar Back
Four key international markets have already roared past pre-pandemic benchmarks. South Korea, India, the Philippines, and Vietnam all surpassed 2019 visitor levels, with growth figures that would make any tourism marketer weak at the knees. South Korea and Vietnam both hit 140 percent of 2019 levels, while India surged by 111 percent and the Philippines by an eyebrow-raising 132 percent.
China, long the heavyweight in Australia’s inbound market, reclaimed pole position, contributing 23.7 percent to international visitor growth. Sydney Airport has been a hive of activity, thanks to Juneyao Air, which became the ninth mainland Chinese carrier to touch down under the NSW Government’s Aviation Attraction Fund in late 2024.
Occupancy Peaks and Festival Feats
Visitors didn’t just come; they stayed, ate, partied and Instagrammed. Accommodation across the state reached an average occupancy rate of 74.6 per cent, outstripping the national average. When it came to significant events, Sydney proved once again that it knows how to turn them on.
New Year’s Eve in Sydney recorded a sky-high 94.5 per cent occupancy, unsurprisingly given that the harbour fireworks are broadcast worldwide. Meanwhile, Vivid Sydney pulled in crowds and filled hotel rooms to an 89.1 per cent occupancy peak. Altogether, accommodation takings climbed to $7.1 billion, a tidy 3 per cent increase yearly.
Regional NSW also had its time in the sun. The New England North West enjoyed 3.5 per cent growth in occupancy, and the Blue Mountains climbed 2.7 per cent — proof that the lure of fresh mountain air and heritage guesthouses still works wonders.
Strategy with Bite
Far from resting on its laurels, the Minns Government has staked its future on the NSW Visitor Economy Strategy 2035, a sweeping plan aiming for $91 billion in annual visitor spend, 40,400 new hotel rooms, 8.5 million more airline seats and 150,000 extra tourism jobs.
Steve Kamper, Minister for Jobs and Tourism, was in fighting form when unveiling the results:
“The numbers are in, and NSW remains the number one destination for domestic and international tourists. These record results confirm the NSW Government is firmly on track to achieve its goal of $59 billion in visitor expenditure by 2026.”
The plan involves pumping up aviation capacity through Take Off Funds, designed to lure airlines into adding millions of new seats. At the same time, an Investment Development Acceleration (IDA) pathway promises to cut red tape for new hotel projects.
Kamper insists the state already has the experiences, landscapes and cultural events the world craves. He argues that scaling up and smoothing the runway for future growth is needed now.
By the Numbers – NSW’s Tourism Muscle
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120.7 million domestic visitors, up 4.1 per cent.
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Regional NSW remains Australia’s top domestic destination for nights, spending, and visitation.
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North Coast lured 1.5 million overnight holidaymakers.
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Hunter Valley drew two million day-trippers.
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Food experiences tempted 1.2 million international visitors (up 10.7 per cent).
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Nature-based adventures captivated 3.3 million international travellers (up 5.5 per cent).
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Western Sydney was the hidden gem — 1.5 million visitors stayed 3.5 million nights and dropped nearly a billion dollars.
Events, Culture, and the X-Factor
Destination NSW isn’t leaving anything to chance. More than 75 events were held across the state, from food festivals that pack out Hunter wineries to cultural showcases in the regions. It’s all part of a long-term play to keep the spotlight firmly on NSW.
And it’s working. With tourism spend roaring back to record levels and visitor arrivals surging, NSW has reasserted its place as the powerhouse of Australia’s visitor economy.
Victoria and Queensland will no doubt continue to fight their corners. Still, with a booming events calendar, a state government hungry for investment, and Sydney’s global pull, the Harbour City and its surrounding regions look set to keep the trophy.
As any Sydneysider will tell you, when it comes to setting the pace, be it New Year’s fireworks, Vibrant light shows, or visitor dollars, NSW doesn’t just compete. It leads.
By Susan Ng
