The hot destination everyone is visiting - and it’s not Australia

How much do we spend on ‘experiences and nightlife’ while holidaying overseas? More than anyone else in the world, according to Mastercard.

It’s now official. Japan is the hottest destination for travellers worldwide and Australians spent more than any other tourists on “experiences and night life” in overseas destinations.

The Mastercard Economics Institute analysed flight booking data throughout the world, finding Japan had achieved an increase in global market share of almost 1 per cent, more than double any other destination.

Second-placed Ireland recorded an extra 0.4 per cent of market share, followed by Romania and Italy on 0.3 per cent and Spain with an additional 0.2 per cent of flight bookings for the year to March, compared with the previous 12 months.

Australia ranked seventh on the list of global trending destinations after seeing its share of flight bookings worldwide inch up 0.18 per cent.

In all, Asia Pacific destinations accounted for half of the world’s top 10 hotspots, with Malaysia, South Korea and Indonesia also seeing growth in market share.

MEI chief economist David Mann said consumers in the region had demonstrated an “intense desire and willingness to travel” and were becoming increasingly savvy to ensure they got the best value from their trips.

“For tourism authorities, retailers, the hospitality and food and beverage sectors, the bottom line is that costs matter,” Mr Mann said.

“In today’s economy, foreign exchange rates and spending power have become vital components in driving a traveller’s assessment of value when they are making their plans.”

He said Japan was a good case in point, given the yen was at its lowest point since 1990, which was benefiting Japanese businesses catering to tourists.

The weaker yen has only made Japan more attractive to travellers. Picture: iStock

As well as ranking as the top destination in the year to March, Tokyo was also seeing the second biggest growth in bookings for the June to August period, behind European Championships’ host city Munich.

The third “trending” destination for the northern summer was Tirana in Albania, which was attributed to its “wallet friendly” appeal and proximity to many coastal hotels.

Others to make the top 10 were Nice in France, Cancun in Mexico, Bali in Indonesia and the island of Corfu in Greece, all of which boasted beautiful beaches.

Mr Mann noted that Mastercard data showed Australians spent more than any other tourists on “experiences and night life” in overseas destinations.

“Relative to other tourists, Australians tend to spend one of every five dollars on experiences and nightlife – compared to the global average, which is closer to one in every 10 dollars,” he said.

Travellers from the UK, Italy, the US and Germany were also considered big spenders, while those from mainland China were starting to gain momentum after a slow recovery.

The study also looked at which destinations Australians had booked most heavily in the next three months, with Nadi in Fiji recording the greatest increase in market share ahead of perennial favourite Bali.

Tokyo was third, and Queenstown in New Zealand fourth, then Kuala Lumpur, Manila and Osaka.

Other findings of the global travel study were that visitors to Australia had extended their trips by an average of one day since the pandemic and favoured fine dining over casual meals.

It was also revealed that travellers stayed longer in countries with warmer climates compared to those with near-freezing temperatures.

Indonesia claimed the title of the longest vacations by overseas visitors, staying an average of 8.9 days, ahead of 5.2 days in Australia.

At the other end of scale, travellers stayed a mere 2.2 days in chilly Norway, 2.3 days in Finland and 3.1 days in Iceland.

Originally published as The hot destination everyone is visiting - and it’s not Australia