Accommodation and ferry services at Queensland’s Fraser and Magnetic islands and South Australia’s Kangaroo Island are back to pre-pandemic levels, and holidaymakers are showing no sign of cutting back on spending in the face of rising cost-of-living pressures.

Clint Feuerherdt, the chief executive of tourism and commuter bus company Kelsian, said people who had been largely confined to home for much of the first two years of the pandemic might be spending less on some things, but travel is not one of them.