Overseas travel booming at the expense of domestic tourism, new data shows

Australians’ pursuit of a value holiday in Bali, Japan and Vietnam is taking a toll on domestic tourism, new figures show.

Australians are heading overseas for holidays to stretch their travel budget further, leading to a flatlining of domestic tourism in December in a blow to operators.

New data from the Bureau of Statistics and Tourism Research Australia showed the growth in outbound travel as opposed to inbound, at the same time as domestic visitor nights stalled.

In November, a total of 961,370 people left Australia for a short term trip, while 679,280 arrived for a holiday, a business event or to see friends and relatives.

The outbound figures were well up on 2019 when 869,120 people travelled abroad, in contrast to the inbound numbers which represented 83 per cent of pre-Covid levels.

All but two of Australia’s top ten visitor markets continued to lag behind 2019 figures, with India and South Korea the exceptions.

In perhaps the biggest blow to local tourism operators, visitors from China remained at just over 50 per cent of pre-pandemic figures at 54,740 compared to 101,790 in the same month five years ago.

Chinese tourists have not returned to Australia as quickly as tourism operators would have liked since Covid. Picture: John Feder

Australian Accommodation Association chief executive James Goodwin said the slow recovery of international visitors was being noticed by members, along with the different mix of tourists.

“The raw data suggests we’re getting closer to the pre-Covid levels, but the new growth markets are not participating in the visitor economy in the same way Americans and Europeans were,” Mr Goodwin said.

“People from New Zealand and India might not be staying in hotels, and eating out at restaurants every night.”

The average hotel occupancy rate across capital cities and the Gold Coast was 69.3 per cent in December, up from 67.6 a year earlier.

He said it was plain many Australians viewed an overseas holiday as better value for money than a domestic trip — which was reflected in the latest federal government data.

Tourism Research Australia’s domestic mobility index showed domestic visitor nights flatlined in December, with zero change from 2023.

Mr Goodwin said the cost of airfares was the major deterrent to domestic travel, with prices up 30 to 40 per cent on last year.

“It’s clear that people are prioritising holidays and that’s a good thing but it’s disappointing to see they’re sometimes prioritising that overseas,” he said.

“Value for money is really important to them at the moment and the pressure that is increasing the holiday costs is clearly air travel. Average hotel rates have only gone up 1.9 per cent year-on-year from $236.70 to $241.30.”

He said many operators had opted to absorb extra costs, such as higher wages and energy bills to keep rates competitive.

Although domestic visitor nights were flat across the country, overnight trips and day trips both rose slightly, up 2 and 4 per cent respectively compared to December 2023.

South Australia and the Northern Territory both saw larger increases but in the ACT, Victoria and Queensland, figures headed into negative territory.

South Australia’s Port Willunga Beach on the Fleurieu Peninsula. Picture: iStock

Federal Tourism Minister Don Farrell encouraged people to make the most of what was left of the holiday season, and explore “every corner of the country”.

“There’s still plenty of summer left and so much to see and do, whether it’s just down the road or further afield,” said Senator Farrell.

“I encourage everyone to continue to support our hardworking tourism and hospitality businesses, they’re ready to provide you with a fantastic experience any day of the week.”

The overseas destinations enjoying record numbers of Australian tourists, included Bali, Japan, Vietnam and Thailand, where our dollar went further than in the US and UK.

A jaw-dropping 72,060 people travelled to Japan in November, up 70 per cent on 2019 figures of 42,620.

Travellers heading to Vietnam were up almost 60 per cent on five years ago, and Bali remained well ahead of the pack with 15 per cent growth in post-pandemic visitors.

Originally published as Overseas travel booming at the expense of domestic tourism, new data shows