Tourists pump record $37.8b into Victorian economy on back of major events

Melbourne is the nation’s top overnight destination for interstate travellers, banking a record tourism spend on the back of major events such as the Matilda’s, Ed Sheeran and Harry Potter.

Tourism spending in Victoria has hit a record high, with new research revealing visitors poured an unprecedented $37.8b into the state economy in 2023.

A report released on Wednesday shows tourist spending in Victoria surged $5.4b higher last year than pre-Covid 2019 levels, in a boost to jobs and businesses.

And visitors flocking to Melbourne’s world class events, hospitality and sporting showpieces made the city Australia’s top “overnight interstate leisure destination”.

The record results, to be published in Tourism Research Australia’s National and International Visitor Survey, show Melbourne as the city of choice for travellers in terms of visitation, nights stayed and amount spent.

Kerr in action at Marvel Stadium. Picture: William West

Ed Sheeran in action at the MCG. Picture: Jake Nowakowski

Global travellers generated $6.4b in tourism expenditure across the state.

In 2023, 3.9m visitors spent $5b in Melbourne alone, with interstate leisure travellers rising four per cent from the 3.7m who visited in 2019.

That compares to 3.1m leisure travellers spending $3.6b in Sydney, two million splurging $2.1b in Brisbane, 1.8 million pouring $3.2b into the Gold Coast and Adelaide’s 1.3m visitors spending $1.6b.

Tourism, Sport and Major Events Minister Steve Dimopoulos said visitors taking in the state’s culture, sports and sites were behind the spending surge.

“This record $37.8b tourism spend is proof that visitors come from across the globe to see our blockbuster events, experiences and destinations,’’ he said.

City visitors taking in events such as Harry Potter and the Cursed Child, the FIFA Women’s World Cup, NHL Global Series ice hockey, Australian Open, Bledisloe Cup and Ed Sheeran at the MCG boosted spending.

Harry Potter and the Cursed Child wowed audiences in Melbourne: Picture: Michelle Grace Hunder

Victorians also spent big travelling their own state, with total domestic expenditure in Melbourne 27 per cent higher compared to the year ending 2019 and 39 per cent higher in regional Victoria.

Spending rose in all the state’s regions, up 72 per cent in Geelong and the Bellarine Peninsula, 59 per cent in Phillip Island and 52 per cent in the High Country.

The results do no include the 288,000 people who attended three sold out Taylor Swift concerts at the MCG, or record crowds at this year’s Melbourne Grand Prix.

Visit Victoria chief executive Brendan McClements said record numbers at this year’s Australian Open and Grand Prix could push this year’s tourist spend further.

“It’s fantastic to see Victoria’s visitor and events sectors thriving with these record results and there’s still an incredible opportunity for growth to drive that number even higher,’’ he said.

It comes as research suggests last weekend’s record breaking Grand Prix had a bigger knock on effect for tourists sampling Victoria than February’s Swift concerts.

The data crunch by Big Red Group, the company behind consumer brands RedBalloon, Adrenaline and Experience Oz, found inner city bookings rose 67 per cent year-on-year during the Grand Prix.

That compared to a 46.8 per cent boost when Swift’s The Eras Tour hit Melbourne.

Visits to Melbourne Aquarium were up 350 per cent, golf packages increased by 183 per cent and NGV visits rose 75 per cent during the Grand Prix.

Red Group chief executive David Anderson said “the halo effect’’ of the Grand Prix also benefited the state’s regions, with trips to Geelong up 108 per cent and Ballarat (2.8 per cent).

A record crowd estimated at 452,055 attended the four days of the Grand Prix.