Australia’s tourism sector is experiencing a recovery with a curious twist: fewer visitors but deeper wallets. Tourism Research Australia’s June quarter International Visitor Survey (IVS), released this week, reveals that holiday travel remains the golden goose of inbound tourism. Yet, the flock hasn’t exceptionally returned to pre-pandemic size.
Australia hosted 3.3 million international holiday trips in the year to June 2025. That’s up 7% on the previous year, but still lagging about 10% behind the halcyon days of 2019. The real surprise, however, lies in the spending habits of those who did make the journey. Holidaymakers spent a handsome $13 billion, not only 27% more than last year but an impressive 22% above the 2019 benchmark.
In other words, there are fewer tourists, but they come with fatter wallets, and they’re not shy about opening them.
Industry voices: cautious optimism with a raised eyebrow
“Overall, the IVS shows a healthy rebound with visitors staying longer, spending more and pushing holiday expenditure well above pre-COVID benchmarks, which is encouraging for operators right across the country,” observed Peter Shelley, Managing Director of ATEC.
But Shelley quickly added a note of caution: “The numbers don’t tell the full story, with the volume of international visitors arriving for a holiday remaining around 10% below 2019. The good news is that the value of international holiday spending is up compared to 2019, highlighting that while we have fewer holiday makers arriving, they are spending more and we are certainly moving in the right direction.”
Shelley’s point is clear: the industry may be smiling, but it hasn’t yet broken into full laughter.
Who’s spending what: the market league table
The report also provides a fascinating peek into who’s digging deepest into their pockets.
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New Zealand topped the charts in total spending, shelling out $412 million across the quarter. Their average spend per trip was a modest $3,237, including plenty of pies, flat whites, and trips to Bondi.
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The United Kingdom didn’t win on volume but led the pack on extravagance, dropping $225 million overall with a princely $7,282 per trip average. (They may grumble about the long-haul flight, but once they land, they make it count.)
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The United States contributed $309 million, averaging $5,186 per visit. Americans continue to prove that they come to play and spend when they arrive.
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China surged back into contention as the second-largest holiday market, contributing $321 million, averaging $4,557 per trip. Their recovery, long anticipated, has finally started to deliver.
The message? Yield matters. Australia’s tourism sector is learning that a handful of high-value markets can be worth more than a crowd of budget backpackers.
Challenges on the runway
The lingering gap in visitor numbers underscores what ATEC and others in the industry know too well: Australia remains a pricey destination to reach. Airfares, still higher than before the pandemic, are a deterrent. Combine that with visa hurdles and the perennial challenge of workforce shortages, and you’ve got headwinds that even the fattest wallets can’t fully smooth over.
ATEC has its wishlist ready: competitive flight costs, visa settings that welcome rather than hinder, and a skilled tourism workforce to ensure international visitors feel they’ve received full value for money. Without those, Australia risks leaving billions on the table.
Tradition meets transformation
For all its setbacks, the recovery demonstrates resilience. Visitors are staying longer, spending more, and rediscovering Australia’s appeal beyond its postcard icons. The question is whether the industry can maintain its nerve and standards while rebuilding volume.
As any seasoned operator will tell you, this sector thrives on numbers but also on memories. A tourist who spends more today is investing in stories they’ll retell tomorrow that attract the next wave of travellers.
The IVS shows we’re on the right track. But until those 10% of visitors who are missing return, the champagne should stay on ice, preferably in a well-stocked hotel bar, waiting for the next big-spending arrival.
By Susan Ng
