Forget the sunburnt country stereotype – Australia’s travel sector has transformed into a red-hot economic powerhouse, injecting over AUD 66 billion into the national GDP in 2023 and supporting hundreds of thousands of jobs while showcasing record-breaking growth across every state, industry segment, and international source market.
Key Takeaways
- In 2023, Australia's tourism industry generated AUD 66.1 billion in total economic contribution, accounting for 3.1% of national GDP
- Tourism directly supported 238,000 jobs in Australia during 2023, representing 1.8% of total employment
- Domestic tourism expenditure reached AUD 112.4 billion in FY2023, up 18.5% from the previous year
- Australia's 8.9 million international visitors in 2023 generated AUD 34 billion in spend
- New Zealand topped source markets with 1.3 million arrivals in 2023, up 15% YoY
- Chinese visitors numbered 596,000 in 2023, recovering to 71% of 2019 levels
- Domestic travel nights totaled 456 million in 2023, up 12% YoY
- 85 million domestic visitor nights were spent in short-term accommodation in FY2023
- Domestic holiday travel expenditure was AUD 45.2 billion in 2023
- International students numbered 543,000 in Australia in 2023, staying avg 52 weeks
- Chinese international students contributed 28% of total at 152,000 in 2023
- Indian students grew to 108,000 enrolments in 2023, +25% YoY
- Hotel room nights sold to internationals reached 18.4 million in 2023
- Total accommodation rooms in Australia numbered 285,000 in 2023
- Serviced apartment occupancy hit 72% nationally in 2023
Australia's tourism industry is thriving with strong recovery and significant economic growth.
Accommodation
- Hotel room nights sold to internationals reached 18.4 million in 2023
- Total accommodation rooms in Australia numbered 285,000 in 2023
- Serviced apartment occupancy hit 72% nationally in 2023
- Sydney's hotel occupancy averaged 78.5% in 2023, RevPAR AUD 245
- Melbourne hotel ADR reached AUD 198 in 2023, up 14%
- Gold Coast occupancy was 76.2% with 2.1 million room nights sold
- Great Barrier Reef resorts saw 85% occupancy peaks in 2023 summer
- Tasmania holiday parks occupancy grew 11% to 68% in 2023
- Airbnb listings totaled 248,000 active in Australia in 2023
- Holiday rental supply increased 9% to 156,000 properties in 2023
- Average hotel room rate nationally was AUD 212 in FY2023
- Boutique hotels grew 7% in supply to 1,200 properties in 2023
- Glamping sites expanded to 450 locations with 92% occupancy in peak 2023
- Total accommodation expenditure by domestics was AUD 18.9 billion in 2023
- International guests occupied 25% of hotel rooms in major cities 2023
- Eco-certified accommodations numbered 1,200 in 2023
- Timeshare and resort clubs had 45,000 members using facilities in 2023
- Caravan parks hosted 11 million guest nights domestically in 2023
- Luxury lodge occupancy averaged 82% with ADR AUD 650 in 2023
Accommodation Interpretation
While international visitors filled a quarter of our city hotels and our glamping tents were practically sagging with 92% occupancy, the true story of Australia's 2023 travel boom is a tale of two markets, where domestic dollars fueled a sprawling and inventive accommodation landscape—from burgeoning holiday parks to boutique hotels—all while chasing the premium rates our spectacular destinations can now command.
Domestic Tourism
- Domestic travel nights totaled 456 million in 2023, up 12% YoY
- 85 million domestic visitor nights were spent in short-term accommodation in FY2023
- Domestic holiday travel expenditure was AUD 45.2 billion in 2023
- Intrastate travel accounted for 68% of domestic trips in 2023
- New South Wales saw 28.4 million domestic visitors in 2023
- Queensland hosted 22.1 million domestic overnight visitors in FY2023
- Victoria recorded 18.7 million domestic visitor nights in 2023
- Western Australia domestic arrivals totaled 7.9 million in 2023
- South Australia had 4.2 million domestic overnight visitors in 2023
- Tasmania saw 2.8 million domestic visitors in FY2023
- Northern Territory domestic travel generated 5.6 million nights in 2023
- Domestic VFR trips numbered 34 million in 2023
- 42% of domestic trips were for holiday purposes in 2023
- Average domestic trip spend was AUD 456 per night in 2023
- Road transport dominated domestic travel at 78% mode share in 2023
- Domestic aviation passenger numbers reached 78.2 million in FY2023
- Camping and caravan travel accounted for 12% of domestic nights in 2023
- Repeat domestic visitors made up 61% of total trips in 2023
- Urban domestic travel represented 45% of total expenditure in 2023
- Rural and regional domestic spend was AUD 32 billion in 2023
- Family group travel dominated domestic market at 52% in 2023
- Solo domestic travelers increased 8% to 14 million trips in 2023
- 65% of Australians took at least one domestic overnight trip in 2023
Domestic Tourism Interpretation
Australians are clearly opting to explore their own backyard with gusto, proving you don't need a passport for an expensive holiday when you've got a perfectly good caravan, a massive country to drive through, and a nagging sense of duty to visit your relatives.
Economic Impact
- In 2023, Australia's tourism industry generated AUD 66.1 billion in total economic contribution, accounting for 3.1% of national GDP
- Tourism directly supported 238,000 jobs in Australia during 2023, representing 1.8% of total employment
- Domestic tourism expenditure reached AUD 112.4 billion in FY2023, up 18.5% from the previous year
- International visitor spending hit AUD 34.2 billion in 2023, recovering to 92% of pre-pandemic levels
- The tourism sector's total GDP contribution grew by 24.7% year-on-year to AUD 152.6 billion in 2024 projections
- New South Wales tourism contributed AUD 24.7 billion to GDP in 2023
- Queensland's visitor economy added AUD 23.8 billion to state GDP in FY2023
- Victoria's tourism sector generated AUD 18.9 billion in economic value in 2023
- Western Australia's tourism industry contributed AUD 11.2 billion to GDP pre-COVID, recovering to AUD 10.8 billion in 2023
- South Australia's tourism expenditure totaled AUD 5.6 billion in 2023
- Tasmania's tourism sector accounted for 9.2% of state GDP with AUD 3.1 billion in 2023
- Northern Territory tourism generated AUD 2.4 billion in visitor spend in 2023
- Australia's aviation sector, linked to tourism, contributed AUD 42 billion to GDP in 2023
- Food and beverage tourism spending reached AUD 15.3 billion in 2023
- Cultural tourism generated AUD 12.7 billion in direct spend across Australia in 2023
- Adventure tourism expenditure totaled AUD 8.9 billion in FY2023
- Ecotourism contributed AUD 6.4 billion to Australia's economy in 2023
- Cruise tourism brought AUD 2.1 billion in direct spend to ports in 2023-24 season
- Business events tourism generated AUD 14.5 billion in 2023
- Wine tourism expenditure hit AUD 2.8 billion in South Australia alone in 2023
- Surf tourism contributed AUD 4.2 billion annually to coastal economies in 2023 estimates
- Australia's international education tourism sector added AUD 40 billion to the economy in 2023
- Total tourism capital investment reached AUD 12.3 billion in FY2023
- Tax revenue from tourism totaled AUD 18.7 billion in 2023
- Multiplier effect of tourism spending was 1.8, generating AUD 2.8 indirect GDP per direct AUD1 in 2023
- Tourism's share of merchandise exports was 4.1% equivalent in 2023
- In 2023, holiday visitors spent AUD 28.6 billion
- VFR (visiting friends and relatives) tourism expenditure was AUD 9.2 billion in 2023
- Short-term visitor arrivals contributed AUD 45.3 billion in exports in Dec 2023 quarter
Economic Impact Interpretation
Australia's tourism industry is essentially the nation's surprisingly fit, triple-threat relative who not only brings home a massive paycheque and employs half the neighbourhood, but also has a lucrative side-hustle in everything from pouring Shiraz to catching waves.
Industry Employment
- Domestic tourism employment totaled 145,000 jobs in hospitality in 2023
- Total tourism jobs recovered to 666,000 in March 2024, 95% of pre-COVID
- Accommodation services employed 112,000 full-time equivalents in 2023
- Food services jobs in tourism reached 278,000 in 2023
- Transport services supported 89,000 tourism jobs in 2023
- Arts and recreation employed 45,000 in tourism in 2023
- Regional tourism jobs totaled 312,000, 47% of national total in 2023
- Youth employment in tourism was 28% under 25 years in 2023 surveys
- Female workforce share in tourism reached 55% in 2023
- Indigenous employment in tourism grew to 12,000 jobs in 2023
- Skills shortage in hospitality affected 65% of operators in 2023
- Average tourism wage was AUD 62,000 annually in 2023
- Apprenticeships in tourism numbered 18,500 active in 2023
- Migrant workers filled 22% of tourism vacancies in 2023
- Infrastructure projects created 25,000 construction jobs for tourism in 2023
- Digital skills training reached 45,000 tourism workers in 2023 programs
- Sustainability roles in tourism grew 15% to 8,200 jobs in 2023
- Tour guide certifications issued totaled 12,300 in 2023
- Event management employment hit 34,000 in tourism sector 2023
- Aviation tourism jobs numbered 56,000 direct in 2023
- Visitor centres staffed 4,500 FTE across Australia in 2023
Industry Employment Interpretation
Australia’s tourism industry, a humming, people-powered engine now at 95% recovery, is still trying to solve the deliciously ironic puzzle of having 666,000 jobs while 65% of its hospitality operators can’t find enough hands to pour the beer or make the beds.
International Tourism
- International students numbered 543,000 in Australia in 2023, staying avg 52 weeks
- Chinese international students contributed 28% of total at 152,000 in 2023
- Indian students grew to 108,000 enrolments in 2023, +25% YoY
- Nepal emerged with 40,000 student visas in 2023
- Vietnamese students totaled 32,000 in 2023
- Brazilian students reached 15,000 in 2023, Latin America growth
- Colombian student visas hit 12,000 in 2023
- 77% of international students cited tourism as secondary purpose in 2023 surveys
- International students spent AUD 2,200 monthly on living expenses avg in 2023
- Luxury international travelers numbered 1.2 million in 2023, avg spend AUD 8,500
- Family international travel grew 15% to 2.1 million trips in 2023
- Adventure international tourists totaled 1.8 million visits in 2023
- Cultural heritage sites drew 3.4 million international visits in 2023
- Wildlife tourism attracted 2.9 million international visitors in 2023
- 68% of international visitors engaged in nature-based activities in 2023
- Food and wine tourism saw 4.2 million international participants in 2023
- Cruise passenger arrivals totaled 1.5 million in 2023-24
- Yachting and marine tourism grew to 250,000 international visitors in 2023
- Sports tourism events hosted 1.1 million international spectators in 2023
International Tourism Interpretation
While the international education sector is busily bankrolling the economy with a diligent army of 543,000 students who are clearly also moonlighting as tourists, the rest of Australia's travel industry is thriving on a delightful smorgasbord of luxury spenders, wildlife-loving families, and cruise passengers, all being happily washed down with a fine local wine.
Transport Aviation
- Total aviation passengers in Australia reached 126 million in FY2023
- Qantas Group carried 52.4 million passengers in 2023, market share 35%
- Virgin Australia transported 23.1 million pax in FY2023
- Jetstar carried 15.8 million low-cost passengers in 2023
- Rex Airlines handled 4.2 million regional pax in 2023
- International air arrivals via Sydney Airport totaled 14.2 million in 2023
- Melbourne Airport international passengers hit 10.8 million in 2023
- Brisbane Airport saw 7.9 million international pax in FY2023
- Perth Airport international traffic grew 45% to 3.4 million in 2023
- Gold Coast Airport handled 6.1 million pax, 85% domestic in 2023
- Regional aviation routes numbered 1,200 with 12 million pax in 2023
- Average domestic airfare was AUD 145 one-way in Q4 2023
- Cargo air freight to support tourism logistics was 1.8 million tonnes in 2023
- On-time performance for domestic flights was 83.2% in 2023
- New airport infrastructure investment AUD 5.2 billion in 2023-24
- Cruise ship calls totaled 1,200 at Australian ports in 2023-24
- Road trips accounted for 82% of domestic transport km in 2023
- Rail tourism passengers numbered 2.4 million on scenic routes in 2023
Transport Aviation Interpretation
Despite the dominance of cars, low-cost flights, and scenic trains, Australia's travel industry in 2023 was a soaring, if sometimes tardy, symphony of over 126 million aviation passengers, with Qantas firmly conducting more than a third of the orchestra from the front.
Visitor Arrivals
- Australia's 8.9 million international visitors in 2023 generated AUD 34 billion in spend
- New Zealand topped source markets with 1.3 million arrivals in 2023, up 15% YoY
- Chinese visitors numbered 596,000 in 2023, recovering to 71% of 2019 levels
- US arrivals reached 785,000 in 2023, with average spend AUD 3,200 per trip
- UK visitors totaled 612,000 in 2023, staying average 28 nights
- Singaporean arrivals hit 456,000 in 2023, up 22% from 2022
- Indian visitors grew to 352,000 in 2023, +28% YoY growth rate
- German arrivals were 245,000 in 2023, focusing on nature-based travel
- South Korean visitors numbered 178,000 in 2023, recovering 65% to pre-COVID
- Japanese arrivals reached 156,000 in 2023, with luxury segment growth
- Malaysian visitors totaled 421,000 in 2023, short-haul preference
- Indonesian arrivals grew to 189,000 in 2023, +35% YoY
- Canadian visitors numbered 298,000 in 2023, high spenders at AUD 4,100 avg
- French arrivals were 132,000 in 2023, adventure focus
- Italian visitors totaled 98,000 in 2023, cultural interests
- Philippine arrivals hit 145,000 in 2023, family travel dominant
- Saudi Arabian visitors grew to 45,000 in 2023, luxury segment
- Total short-term visitor arrivals were 9.1 million in FY2023-24
- Holiday purpose accounted for 51% of international arrivals in 2023
- Business/leisure arrivals made up 18% of total in 2023
- Average length of stay for international visitors was 24.3 nights in 2023
- 72% of international visitors arrived by air in 2023
Visitor Arrivals Interpretation
While Kiwis are practically neighbors on a long-term lease and Americans flash their cash in a brief but brilliant burst, the world's tourists collectively propped up the Australian economy in 2023 to the lavish tune of $34 billion, proving that whether they come for a quick sun-soak or a month-long wander, everyone pays to see the sunburned country.
Sources & References
- Reference 1TOURISMtourism.australia.comVisit source
- Reference 2WTTCwttc.orgVisit source
- Reference 3ABSabs.gov.auVisit source
- Reference 4TRAtra.gov.auVisit source
- Reference 5PWCpwc.com.auVisit source
- Reference 6DESTINATIONNSWdestinationnsw.com.auVisit source
- Reference 7QLDqld.gov.auVisit source
- Reference 8TOURISMtourism.vic.gov.auVisit source
- Reference 9WESTERNTOURISMwesterntourism.com.auVisit source
- Reference 10TOURISMtourism.sa.gov.auVisit source
- Reference 11TOURISMTASMANIAtourismtasmania.com.auVisit source
- Reference 12NTnt.gov.auVisit source
- Reference 13BITREbitre.gov.auVisit source
- Reference 14TOURISMRESEARCHtourismresearch.gov.auVisit source
- Reference 15ATSBatsb.gov.auVisit source
- Reference 16OUTBACKQUEENSLANDoutbackqueensland.com.auVisit source
- Reference 17ENVIRONMENTenvironment.gov.auVisit source
- Reference 18CRUISEAUSTRALIAcruiseaustralia.com.auVisit source
- Reference 19BCAUZbcauz.com.auVisit source
- Reference 20WINEAUSTRALIAwineaustralia.comVisit source
- Reference 21SURFINGAUSTRALIAsurfingaustralia.comVisit source
- Reference 22INTERNATIONALEDUCATIONinternationaleducation.gov.auVisit source
- Reference 23TREASURYtreasury.gov.auVisit source
- Reference 24DFATdfat.gov.auVisit source
- Reference 25NTBUSINESSntbusiness.nt.gov.auVisit source
- Reference 26AIRSERVICESAUSTRALIAairservicesaustralia.comVisit source
- Reference 27CARAVANINDUSTRYcaravanindustry.com.auVisit source
- Reference 28RDCrdc.gov.auVisit source
- Reference 29STUDYINAUSTRALIAstudyinaustralia.gov.auVisit source
- Reference 30UNIVERSITIESAUSTRALIAuniversitiesaustralia.edu.auVisit source
- Reference 31HOMEAFFAIRShomeaffairs.gov.auVisit source
- Reference 32AEIaei.gov.auVisit source
- Reference 33AUSTRALIAaustralia.gov.brVisit source
- Reference 34ADVENTURETRAVELadventuretravel.bizVisit source
- Reference 35ARTSarts.gov.auVisit source
- Reference 36GASTRONOMYTOURISMgastronomytourism.com.auVisit source
- Reference 37MARINE-TOURISMmarine-tourism.org.auVisit source
- Reference 38AUSPORTausport.gov.auVisit source
- Reference 39STRstr.comVisit source
- Reference 40HOTELMANAGEMENThotelmanagement.com.auVisit source
- Reference 41COLLIERScolliers.com.auVisit source
- Reference 42PKFpkf.com.auVisit source
- Reference 43DESTINATIONGOLDCOASTdestinationgoldcoast.comVisit source
- Reference 44GBRCgbrc.com.auVisit source
- Reference 45AIRBNBNEWSairbnbnews.com.auVisit source
- Reference 46REALESTATErealestate.com.auVisit source
- Reference 47AHGahg.com.auVisit source
- Reference 48BOUTIQUEHOTELSAUSTRALIAboutiquehotelsaustralia.comVisit source
- Reference 49GLAMPINGHUBglampinghub.com.auVisit source
- Reference 50HOTELNEWShotelnews.com.auVisit source
- Reference 51ECOTOURISMecotourism.org.auVisit source
- Reference 52TIMESHAREASSOCIATIONtimeshareassociation.com.auVisit source
- Reference 53CPAcpa.com.auVisit source
- Reference 54LUXURYLODGESluxuryLodges.com.auVisit source
- Reference 55QANTASqantas.com.auVisit source
- Reference 56VIRGINAUSTRALIAvirginaustralia.comVisit source
- Reference 57JETSTARjetstar.comVisit source
- Reference 58REXrex.com.auVisit source
- Reference 59SYDNEYAIRPORTsydneyairport.com.auVisit source
- Reference 60MELBOURNEAIRPORTmelbourneairport.com.auVisit source
- Reference 61BNEbne.com.auVisit source
- Reference 62PERTHAIRPORTperthairport.com.auVisit source
- Reference 63GOLDCOASTAIRPORTgoldcoastairport.com.auVisit source
- Reference 64INFRASTRUCTUREinfrastructure.gov.auVisit source
- Reference 65AIRPORTSairports.org.auVisit source
- Reference 66PORTSAUSTRALIAportsaustralia.com.auVisit source
- Reference 67RAILEXPRESSrailexpress.com.auVisit source
- Reference 68JOBSANDSKILLSjobsandskills.gov.auVisit source
- Reference 69NCVERncver.edu.auVisit source
- Reference 70TAFEtafe.gov.auVisit source
- Reference 71WGEAwgea.gov.auVisit source
- Reference 72INDIGENOUSindigenous.gov.auVisit source
- Reference 73RESTAURANTCATERINGrestaurantcatering.com.auVisit source
- Reference 74AUSTRALIANAPPRENTICESHIPSaustralianapprenticeships.gov.auVisit source
- Reference 75TDAtda.com.auVisit source
- Reference 76SUSTAINABLETOURISMAUSTRALIAsustainabletourismaustralia.comVisit source
- Reference 77TOURGUIDESAUSTRALIAtourguidesaustralia.com.auVisit source
- Reference 78MECCAmecca.com.auVisit source
- Reference 79IALAiala.org.auVisit source
- Reference 80VICvic.gov.auVisit source