Victoria’s tourism surge fuelled by unlikely boom in notorious Chapel St precinct
Tourism bookings in Victoria have surged this spring, propelling the state past NSW — and one neighbourhood that’s enticing visitors is not where you would expect.
Victoria has experienced a spring tourism booking surge, driven by an unlikely suburb.
A new report from tourism e-commerce company Big Red Group shows Victoria’s tourism bookings finally overtook NSW in the September-November season, making it Australia’s second-largest tourism state.
The growth was delivered by a 34 per cent surge in bookings in the Yarra Valley region, but also a 28 per cent growth in the inner-city locale of Stonnington — home to the seedy Chapel St.
This is despite the street’s growing reputation for being unsafe and poorly maintained.
The area also experienced strong growth in the winter report, with a 27.6 per cent surge.
It follows a report from the local council which reported the Prahran has “recovered well from a lull” in summer 2024.
The area has experienced a massive tourism and entertainment boost, with spending in cafes up 17 per cent, restaurants up 10 per cent and recreation up a massive 75 per cent.
“Peaks in foot traffic in the precinct continue to trend towards weekends and evenings, with strong night-time patronage on Fridays and Saturdays,” the council report said.
A council plan from mid-2025 has aimed to tackle growing crime in the area, clean up graffiti and boost the strip’s vibrant night-life.
The $4.4m Chapel Street Precinct Improvement Plan included increased after-hours cleaning and graffiti removal, refreshed public spaces and infrastructure upgrades, a review of crime in public spaces, and a marketing program to promote the precinct.
The growth was also driven by the Mornington Peninsula and Daylesford, which benefited from increased interest in spa and wellness tourism.
Tourism Minister Steve Dimopoulos said of the data that Victoria is “the major events capital of Australia.”
“We’re the only city on the planet with a Grand Prix and Grand Slam, NFL in season games, NBA games, the Boxing Day Test and the AFL Grand Final, the race that stops the nation, gigs across the state and world-class major events all year round.”
“More visitors mean more jobs, with our record-breaking $43.7 billion visitor economy supporting 288,000 jobs across the state.”
Big Red Group chief growth officer John Boris said that Victoria had “surged ahead” this spring season.
“They overtook New South Wales as Australia’s second largest tourism state, with experience bookings soaring over 38 per cent, according to Big Red Group’s seasonal experience index for spring.
“Melbourne once again emerged as the nation’s top experience destination for the third consecutive season.
“And tourism was really fuelled by key areas such as the Yarra region, which grew 34 per cent, and the Mornington Peninsula, which continued its momentum with a 13 per cent uplift, which was really driven by a booming wellness and spa experience economy.”
It was not good news for all of Victoria, however, with the Gippsland region and Bellarine Peninsula declining.
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Originally published as Victoria’s tourism surge fuelled by unlikely boom in notorious Chapel St precinct
