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Bulletin – December 2022 Australian Economy The Recovery in the Australian Tourism Industry
8 December 2022
Angelina Bruno, Kathryn Davis and Andrew Staib [*]
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The Australian tourism industry is gradually recovering from the COVID-19 pandemic that brought global travel to an unprecedented standstill. International tourism fell sharply in early 2020 and has only slowly recovered since restrictions were lifted in the first half of this year. By contrast, domestic tourism spending bounced back quickly as local restrictions eased and is now above pre-pandemic levels. This article outlines the recovery in the Australian tourism industry following the pandemic, the challenges the industry has faced in reopening, and the uncertainties around the outlook for the tourism industry over the next few years.
Introduction
Restrictions to contain the spread of COVID-19 and precautionary behaviour by consumers significantly disrupted the movement of people both domestically and internationally during the pandemic period. This had a devastating impact on many Australian businesses that provided services to domestic or international tourists. Nevertheless, many of these businesses have shown considerable resilience and flexibility, aided by a range of government support packages, and are now expanding to service the recovery.
This article presents a snapshot of the tourism industry through the pandemic, before focusing on the recovery over the past year. While international tourism is recovering only slowly, domestic tourism spending has rebounded strongly – to above pre-pandemic levels – as many Australians have chosen to take domestic rather than overseas holidays. The article draws on information from the Banks regional and industry liaison program to discuss the challenges the tourism industry has faced in meeting this sudden increase in demand, and the outlook for tourism activity over the next few years. Many tourism businesses have found it difficult to quickly scale up to meet demand, and these supply constraints have limited tourism activity and led to higher prices. Looking ahead, a continued recovery in tourism activity is expected as supply-side issues are gradually resolved and international tourism picks up further. However, there are a number of uncertainties around the timing and extent of this recovery.
International tourism
The onset of the COVID-19 pandemic led to a sharp drop in international tourism, as governments around the world implemented travel and border restrictions (Graph 1). In April 2020, international tourism arrivals declined globally by around 90 per cent and Australias international tourist arrivals effectively came to a standstill for several months.
The timing and extent of the recovery in international tourism has been uneven across the world, as national governments removed restrictions at a different pace. Globally, international tourism arrivals picked up to be around three-quarters of their pre-pandemic levels by September 2022. In Australia, international tourist arrivals rose slightly in mid-2021 under the temporary operation of the Australia–New Zealand travel bubble, and also in November 2021 as border restrictions eased in some parts of the country. However, it wasnt until February 2022 – when Australia removed border restrictions for vaccinated persons – that arrivals began to substantially pick up. Since July 2022, people have been able to travel to and from Australia without being required to declare their vaccination status.
Short-term overseas arrivals to Australia (which include tourists but also those visiting for less than 12 months for business, education and employment purposes) picked up to be around half of pre-pandemic levels by September 2022 (Graph 2). However, short-term departures of Australian residents have picked up more quickly than short-term arrivals of overseas visitors, and so the net outflow of travellers has been larger than pre-pandemic levels in recent months.
Reasons for travel
The recovery in short-term travel to and from Australia has been particularly pronounced among those visiting friends and relatives (VFR) (Graph 3). VFR accounted for just over half of all international visitors spending over the year to June 2022, whereas it accounted for just under one-fifth in 2019 (Table 1). Short-term travel for business and education purposes has also picked up. However, the recovery in outbound business travel (including conventions and conferences) has outpaced inbound business travel, with relatively few major business events held in Australia in 2022. Short-term travel for employment reasons has almost fully recovered to its 2019 levels. By contrast, the number of visitors arriving in Australia for holidays has picked up only slightly, to be around one-third of its pre-pandemic level (holiday visitors accounted for only 10 per cent of international visitor spending over the year to June 2022, compared to nearly 40 per cent in 2019).
Working holiday makers and international students who are in Australia for more than a year are not included in the short-term arrivals data, but they make a significant contribution to tourism spending. According to Hall and Godfrey (2019), visitors who state the main purpose of their trip as education stay longer and spend more than leisure and business tourists. International students and individuals on working holiday visas have a high propensity to travel within Australia, and often their friends and relatives come to visit. The number of international students and working holiday visa holders in Australia has risen to be around two-thirds and one-half of their pre-pandemic levels in the September quarter of 2022, respectively.
The recovery in international visitors to Australia has been uneven across source countries, reflecting both travel restrictions and the quicker recovery in VFR relative to other types of travel (Graph 4). The recovery in the number of visitors from India, New Zealand and the United Kingdom has been faster than for other countries, possibly due to the close relationships residents from those countries have with Australian residents (in the 2021 Census, England and India were the top two countries of birth for Australian residents, other than Australia). While there has been a notable pick-up in people from India visiting friends and relatives, there has also been a pronounced recovery in the number of Indian students coming to Australia. By contrast, the number of Chinese visitors remains more than 90 per cent below pre-pandemic levels, due to ongoing travel restrictions to control the spread of COVID-19 in China. This is significant for the Australian tourism sector as, prior to the pandemic, Chinese visitors were the largest source of tourist spending and contributed around 20 per cent of total leisure travel exports in 2019 (or nearly 30 per cent if education-related travel is included).
Domestic tourism
Domestic tourism activity was severely disrupted by the COVID-19 pandemic, due to the introduction of strict restrictions on household mobility (lockdowns) across the country in March 2020 (Graph 5). At the same time, a number of states and territories implemented interstate border restrictions and quarantine arrangements. As a result, domestic tourist visitor numbers declined sharply. By April 2020, domestic tourist numbers were less than 20 per cent of pre-pandemic levels.
The first lockdown ended for most parts of the country by the end of May 2020, although some restrictions on household activity and state border closures remained in place for an extended period of time. Melbourne re-entered lockdown for much of the second half of 2020. By the end of that year, however, a number of states and territories had eased restrictions and reopened domestic borders, allowing domestic visitor numbers to recover to around 80 per cent of pre-pandemic levels over the 2020/21 summer and the 2021 Easter holidays (Graph 6).
A third major disruption emerged in mid-2021, as a sharp rise in the number of Delta-variant cases led to the reintroduction of lockdowns in New South Wales, Victoria and the ACT. Around half of the Australian population were under significant restrictions for most of the September quarter of 2021 and domestic visitor numbers declined to around 40 per cent of pre-pandemic levels.
Domestic tourism numbers rebounded again during the 2021/22 summer holidays as health restrictions eased once more, but not to the levels of the previous year; the Omicron outbreak in early 2022 tempered activity somewhat. As concerns about Omicron abated, domestic visitor numbers again recovered, and have been around 85 per cent of pre-pandemic levels since Easter 2022.
While domestic visitor numbers remain below pre-pandemic levels, total domestic tourism spending and the average spend per visitor have been above pre-pandemic levels since March 2022. Some liaison contacts report that domestic travellers are staying longer than they did before the pandemic and spending patterns have become more like those on overseas holidays, with domestic tourists spending more on tours and experiences to explore Australia. This higher spending also reflects an increase in domestic travel prices (see below).
The recovery in domestic tourism spending in 2022, to around or above pre-pandemic levels, is evident in all states and territories (Graph 7). Naturally, states that experienced longer and stricter COVID-19 restrictions had much more significant declines in tourism activity over 2020 and 2021. Western Australia experienced the least disruption to the tourism industry, partly due to having fewer restrictions on movement, but also because the closed state border meant that more Western Australians were holidaying in their own state. In recent months, the Northern Territory and Queensland have been the recipients of domestic tourism spending well above 2019 levels, perhaps because these travel destinations are regarded as closer substitutes for overseas holidays.
Travel to regional areas recovered more quickly and fully than travel to capital cities (Graph 8). Regional areas were less affected by lockdowns and liaison suggests that travellers preferred to avoid more densely populated areas. There was also a shift towards driving holidays, which has greatly benefited regions within two to three hours drive from capital cities.
Challenges in reopening the Australian tourism industry
While pandemic-related declines in domestic and international tourism weighed heavily on the Australian tourism industry, many businesses have proved resilient and have experienced a strong rebound in demand from domestic tourists in recent months. Nevertheless, many businesses have found it difficult to scale up to meet this demand, and supply constraints have acted to limit tourism activity and led to higher prices.
In 2022, the biggest constraint on the recovery in tourism activity has been difficulty finding sufficient labour to service tourism demand. The tourism industry lost a large number of experienced staff during the pandemic – and so when domestic tourism recovered, the sector had to rapidly hire workers in a tight labour market. Online advertisements for tourism jobs rose to record highs by mid-2022 (Graph 9). These jobs have been difficult to fill. Liaison contacts have suggested that many of the Australians who had worked in the tourism industry prior to the pandemic have since found jobs in other industries. Moreover, many tourism-related jobs had previously been filled by international students and, particularly in regional locations, working holiday makers – many of whom left Australia during the pandemic and have been slow to return. On top of the difficulties in attracting and retaining staff, illness-related absenteeism has been elevated more broadly through 2022.
Tourism businesses in many regional areas have had additional difficulties attracting staff, partly due to a shortage of housing. An increase in net migration to these areas has contributed to very low rental vacancy rates in many popular tourist areas. In response, some holiday accommodation providers have resorted to housing their own staff.
There have also been some changes in consumer behaviour resulting from the pandemic that have made it harder for tourism businesses to plan and have sufficient staff available to meet demand. Trends such as increased working from home and a reduction in business-related day trips have created a larger gap between peak and off-peak periods for many tourism businesses. There are also sharper peaks and troughs in demand because there are fewer international tourists, who often travel at different times to domestic travellers (e.g. filling accommodation mid-week and outside school holidays). Booking lead times substantially shortened during the pandemic, though there is some evidence that perhaps these are lengthening out again. Nevertheless, booking lead times have always been shorter for domestic travel than international travel, so the change in the composition of travellers has made it more difficult for tourism businesses to plan ahead.
While labour has been a constraint across most of the tourism industry, a lack of capital equipment has been an additional constraint for some businesses. Many tourism-related businesses sold off or retired vehicles, boats, aircraft and other equipment during the pandemic when they could not operate and were in need of cash (Grozinger and Parsons 2020). The sudden and stronger-than-anticipated recovery in domestic tourism in 2022, combined with supply chain issues delaying the manufacture and delivery of new equipment and vehicles, has meant that many businesses did not have the capital equipment they need to service the increase in demand.
These supply-side constraints (in both labour and capital) have limited the tourism industrys ability to ramp up to meet demand. Liaison suggests many tourism operators are operating below their previous capacity – for example, many have had to limit their operating hours because of lack of staff, and some accommodation providers have not been able to offer all their rooms for booking as they do not have enough staff to service them. Labour shortages and supply chain delays have also weighed on aviation capacity and contributed to a decline in domestic airlines on-time performance over 2022 (Graph 10).
Similar constraints are also weighing on the recovery in international tourism. Contacts suggest that the recovery has been held back by limited flight availability, the higher cost of travel insurance and, in many cases, the higher cost of flights. Liaison contacts have indicated that delays in visa issuance in 2022 have also been a barrier for those seeking to travel to Australia. Over the past few months, however, visa processing times have shortened somewhat, and visa processing for applicants located overseas – including applicants for visitor, student and temporary skilled visas – have been given higher priority to allow more people to travel to Australia (Department of Home Affairs 2022).
The supply-side constraints in the tourism industry, combined with a strong pick-up in domestic demand and the higher cost of inputs such as fuel, have led to a sharp increase in domestic travel prices (Graph 11). Liaison contacts suggest that consumers have been relatively accepting of price rises for services essential to travel, such as accommodation. However, smaller operators – particularly in highly discretionary services, such as tours – have had less scope to increase their prices, and their margins have been squeezed by the higher costs of inputs such as food, fuel, energy and insurance costs. Prices for overseas travel have also increased significantly in recent quarters, as demand for flights has outstripped capacity, alongside rising jet fuel costs and increases in prices for international tours (ABS 2022).
The outlook
Looking ahead, tourism activity is expected to continue to recover as supply-side issues are slowly resolved and international tourism picks up further. Most liaison contacts suggest a full recovery will not occur until at least mid-2023; many expect it to take a few more years. There are a number of factors that will affect the timing and extent of the ongoing recovery in tourism, including:
- The easing of supply-side constraints : It is unclear how long it may take for some of the supply-side constraints in the industry to ease, including whether planned changes in flight availability will be sufficient to meet changes in demand, and whether the sector will be able to fill more job vacancies over time and as migration returns.
- The return of international students and working holiday visas : Many people have recently had working holiday visas approved and are expected to arrive over the coming year. Liaison contacts also expect international student numbers to increase over the next few years. The return of working holiday and student visa holders will increase demand for tourism services, and will likely alleviate labour shortages as they take jobs in the sector.
- Australians preferences for domestic and international travel : Demand for Australias tourism services may decline if Australians preference for overseas rather than domestic holidays picks up before international inbound tourism demand increases further. It is possible that cost-of-living pressures, combined with the higher cost of international travel, could lead Australian households to continue to prefer domestic holidays for a time. Nevertheless, many households have significant savings and pent-up demand for international travel after planned trips have been deferred over the past few years.
- The global economic outlook : Global economic conditions and the exchange rate affect decisions about whether to travel the long distance to Australia (as they have in the past) (Dobson and Hooper 2015). Financial concerns and the rising cost of living could make expensive, long-haul travel less attractive.
- The timing and extent of recovery in Chinese tourism : As noted above, China accounted for a large share of tourism spending prior to the pandemic. The outlook for Chinese tourism (and international students from China) remains highly uncertain and will depend on a number of factors, including Chinas policies to restrict the spread of COVID-19 , the outlook for the Chinese economy and the travel preferences of Chinese tourists more generally.
Restrictions to contain the spread of COVID-19 and precautionary behaviour significantly disrupted the movement of people both domestically and internationally throughout the pandemic. Since restrictions have eased, international travel has been slow to recover, but domestic tourism spending has rebounded to be above pre-pandemic levels and many tourism service providers are currently operating at capacity. Looking ahead, tourism activity is expected to continue to recover, as supply-side issues are slowly resolved and international tourism picks up further. Australia remains an attractive destination for both domestic and international tourists, and the resilience and flexibility demonstrated by Australian tourism businesses in recent years bode well for the opportunities and challenges that lie ahead.
The authors are from the Regional and Industry Analysis section of Economic Analysis Department. The authors are grateful for the assistance provided by others in the department, in particular Aaron Walker and James Holloway. [*]
ABS (Australian Bureau of Statistics) (2022), Main Contributors to Change, Consumer Price Index , June.
Department of Home Affairs (2022), Visa processing times, viewed 14 November 2022. Available at <https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times>.
Dobson C and Hooper K (2015), Insights from the Australian Tourism Industry , RBA Bulletin , March, pp 21–31.
Grozinger P and Parsons S (2020), The COVID-19 Outbreak and Australias Education and Tourism Exports , RBA Bulletin , December.
Hall R and Godfrey A (2019), Edu-tourism and the Impact of International Students, International Education Association of Australia, 3 May.
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Senator the Hon Don Farrell
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Australian tourism continues to recover
- Media release
International visitors are expected to return to Australia more quickly than previously predicted, according to Tourism Research Australia's latest forecasts.
The Tourism forecasts for Australia: 2023 to 2028 report published today outlines a stronger growth for international arrivals than last year's forecasts.
This reflects the return of Chinese visitors to Australia since China's borders reopened in January, and following the restart of group tour travel from China to Australia in September.
Sustained high growth in international arrivals to Australia so far this year, the continued return of flight routes and commencement of new routes to Australia also underpin the encouraging projections.
Australia is predicted to welcome:
- 7.3 million international visitors in 2023, almost twice as many as last year (3.7 million)
- 9.3 million in 2024, reaching 98 per cent of pre-pandemic levels;
- 10.2 million in 2025, surpassing pre-pandemic levels to set a new record;
- And 12.1 million in 2028, an increase of 4.8 million or 65 per cent on this year.
The report also forecasts record spending across Australia's tourism and travel industry, which delivers benefits for accommodation, hospitality, transport, experience and event providers, and retail.
Excluding students who stay in Australia for more than 12 months, both domestic and international travellers are predicted to spend $170.3 billion in 2023, 23 per cent ($31.9 billion) above pre-pandemic (2019) levels.
International visitors alone are projected to spend $28.6 billion in Australia this year, a 124 per cent increase on 2022. This means every international tourist we welcome is spending almost $4,000 on average in our communities.
The report also points to significant increases in expected visitors from a number of countries in Southeast Asia, as well as continued strong growth in travel from China.
Deepening Australia's economic engagement with Southeast Asia is a key priority for the Government, and the Southeast Asia Economic Strategy to 2040 charts a pathway to further grow inbound tourism in our region.
While domestic travel stabilised in 2023, after a rapid bounce back in 2022 from the pandemic, the report forecasts that by 2028, domestic visitor spend will reach $172.6 billion, some 61 per cent higher than the pre-pandemic level.
Quotes attributable to the Minister for Tourism, Don Farrell:
"Australia is the best place to live, work and visit, and thanks to our resilient, world-class tourism operators, international and domestic travel has bounced back. "A thriving tourism industry is crucial to our economic prosperity, with every dollar spent in the visitor economy generating a further 81 cents for other parts of the economy. "Tourism is a major export earner and employer. One in eight Australian businesses is tourism-related and it is the lifeblood of so many Australian communities. "That's why the Albanese Government continues to back in our hard-working industry, including through Tourism Australia's $125 million Come and Say G'day campaign and our additional $48 million package of support for Australian tourism and travel businesses. "It's great to see the rapid increase in international visitors to Australia this year, who are coming back in droves to come and say G'day."
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Tourism forecasts for Australia
Summarises the outlook for domestic and international tourism in Australia.
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Tourism forecasts for australia 2023 to 2028.
TRA produces tourism forecasts for Australia. This year, we produced:
- international forecasts at the national level and for many markets and purposes of travel
- domestic forecasts at the national level and for each state and territory.
The forecasts cover the 5-year forward period, 2023 to 2028, on a calendar year basis. Forecast data are available to download at the bottom of this page.
The report contains a written summary and analysis of the forecast data. It presents an overview of the outlook and discusses the drivers and implications of the projected path forward for the tourism sector. It also notes some key risks to the forecasts.
Download the report
Tourism forecasts for Australia 2023-2028
Visitor economy outlook
The report forecasts a positive outlook for the visitor economy. In the next 5 years, we predict both international and domestic tourism will continue to grow. We expect:
- international travel to Australia will exceed its pre-pandemic level in 2025
- international spend in Australia will exceed its pre-pandemic level in 2024
- domestic travel will stabilise in 2023, after strong growth in 2022
- domestic tourism spend, which already exceeds its pre-pandemic level, will continue to rise
- domestic tourism nights in all states and territories will recover to pre-pandemic levels.
Our forecasting method
TRA produces forecasts using a hybrid, evidence-based approach. This method combines data-based analysis and modelling with expert judgement. Insights from the Tourism Forecasting Expert Panel are a critical component of TRA’s forecasting process. The Panel:
- offers long-standing support for TRA’s forecasting work
- is a source of broad-based, respected and constructive intelligence that informs the tourism forecasts
- comprises academics, industry and government specialists, and representatives from the state and territory tourism organisations
- provided input to this year’s forecasting work through survey responses, high-level discussions, and feedback on draft forecast data.
Download the data
Domestic forecasts 2023-2028 data tables
International forecasts 2023-2028 data tables
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mail tourism.research@tra.gov.au
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Tourism forecasts 2022-2027, tourism forecasts 2021-2026, related content, domestic tourism results.
International tourism results
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Brisbane / Meanjin to host the Australian Tourism Exchange in 2025
The Australian Tourism Exchange (ATE) will return to Brisbane / Meanjin next year with Australia’s largest annual tourism trade event to be held at the Brisbane Convention & Exhibition Centre from Monday, 28 April 2025 to Thursday, 1 May 2025.
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ATE returns to Brisbane for the first time since 2007 and it will be the fourth time the city has held the event, having also hosted in 2001 and 2002.
Federal Minister for Trade and Tourism, Senator Don Farrell, said ATE is an important event each year which provides the Australian tourism industry with the chance to meet with tourism wholesalers and retailers from 30 countries around the world.
"The Australian Tourism Exchange is an important event for Australian tourism businesses to sell their products and show the world why there is no place like Australia,” Mr Farrell said.
“With Queensland gearing up to host the Olympics in 2032, it’s terrific to see ATE returning to Brisbane next year connecting international buyers and local businesses to take advantage of the green and gold decade.”
“Queensland is home to some of the most beautiful and authentic Australian experiences and will be an excellent host for ATE in 2025.”
Queensland’s Tourism Minister, Michael Healy, said Queensland is the country’s favourite holiday destination and usually has the largest delegation of tourism providers at ATE.
“ATE is our industry’s marquee event and we can’t wait to welcome hundreds of international buyers and sellers to Brisbane once again, with the city thriving in new tourism infrastructure and opportunities,” Mr Healy said.
“Queensland always puts on a great show for ATE and we know when we are the host, demand is high for our incredible familiarisation and event program.
“We’ve previously helped Tourism Australia reach one of their highest delegation numbers in the event’s history and we look forward to reaching new heights in 2025.”
Tourism Australia Managing Director, Phillipa Harrison, said with the Australian tourism industry on the cusp of full recovery the focus at ATE25 in Brisbane will help to drive the sustainable growth which will take the industry forward.
“Melbourne has once again done a great job hosting ATE and we look forward to taking this great event back to Queensland which is home to so many tourism operators and experiences,” Ms Harrison said.
“By the time ATE returns to Brisbane next year we expect that the Australian tourism industry would have surpassed the 2019 numbers we have been using as a benchmark and will once again be firmly focused on the future,” Ms Harrison said.
Tourism and Events Queensland CEO, Patricia O’Callaghan, said Team Queensland is ready to showcase our state to the world.
“We are proud to be Australia’s number one holiday destination so it’s great to welcome ATE back to Queensland which we estimate will benefit the Queensland economy by $8.5 million,” Ms O’Callaghan said.
“Queensland hosts many key trade events as we understand the importance they play in growing tourism in our state, but it is fair to say ATE is the cream of the crop. The long-term benefits from ATE are substantial – the relationships and future business it establishes will help us build to our goal of reaching $44 billion by 2032 in overnight visitor expenditure.”
Brisbane Economic Development Agency CEO, Anthony Ryan said Brisbane will be ready to roll out the welcome mat for tourism businesses from around the world in 2025 for the country’s biggest annual travel industry event – the Australian Tourism Exchange (ATE); 18 years after it was last hosted in Brisbane.
“Lonely Planet, The New York Times, TIME Magazine and travel guide publisher Frommer’s, have all recently named Brisbane among the globe’s top destinations, and now having Brisbane chosen as the host city of ATE 2025 is another coup for our ever-evolving and beautiful city,” Mr Ryan said.
“This is Brisbane’s time. Hosting ATE will provide an invaluable platform for Brisbane to shine on the world stage, with tourism operators nationwide able to connect and conduct business with international buyers from around the world in our city.
“We look forward to welcoming ATE 2025, and we’re ready to showcase an abundance of new attractions, hotels, dining experiences, and cultural gems across Brisbane, ensuring an unforgettable visit for all attendees.”
ATE25 will be delivered by Tourism Australia in partnership with Tourism Events Queensland, with support from the Brisbane Economic Development Agency.
For media enquiries contact: Beau Mitchem M: +61 413 254 708 E: [email protected]
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The 2024 edition of the Australian Tourism Exchange is the largest in the event’s 44-year history. The largest trade show in the Southern Hemisphere kicked off today [Monday 20 May], bringing together 2,600 delegates at the Melbourne Convention Exhibition Centre.
More than 50,000 appointments are expected to be conducted throughout the four-day event, which has attracted record numbers of Australian tourism sellers and international buyers from 37 countries. Delivered by Tourism Australia in partnership with Visit Victoria, ATE24 showcases Australia’s diverse tourism offerings and helps local tourism operators secure future business.
Opening speakers provided delegates with an update on the current Australian tourism landscape, delivered by Phillipa Harrison, MD of Tourism Australia ; Hon. Don Farrell, Federal Minister of Trade and Tourism and Special Minister of State ; and Steve Dimopoulos, Victorian Minister for Tourism, Sport and Major Events .
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Post-pandemic tourism recovery
Don Farrell, Federal Minister of Trade and Tourism said: “There’s no doubt that Australian tourism, and the tourism industry, has been through some tough times over the past few years, not least, of course, is the COVID pandemic. But the good news is that the industry is recovering well.”
Farrell cited a positive and growing contingent of UK visitors and international travellers who want to holiday and work in Australia.
“In fact, I predict that by the end of this year, our tourism numbers will exceed the pre-COVID levels,” declared Farrell.
New markets of growth
Phillipa Harrison, Managing Director of Tourism Australia , identified India and Korea as key markets demonstrating inbound traveller numbers that exceed pre-pandemic levels, while other markets are taking a little longer to recover.
“China is an exceptionally large market for us,” said Harrison. “We had a great Chinese New Year, and [recovery] percentages are sitting in the 70s now, so we’re really positive about that market – and in fact, all markets.”
As an island nation, Harrison tapped aviation – both domestic and international – as the key to the country’s continued tourism growth. New routes, such as those launched by Turkish Airlines between Istanbul and Melbourne, and direct connections between Perth and London, Rome and Paris – which launch this July for the Olympics – by Qantas, have played an integral role in increasing visitor growth to pre-pandemic traveller numbers.
“Our aviation is sitting back at around 100%,” said Harrison of the recovery level to 2019.
“With new routes coming in, we have more direct connectivity with India and Korea than we’ve ever had before. Chinese carriers are all coming back and we’re seeing around 90% [recovered capacity] from China.”
Tourism Australia also reported 236 new hotel openings since 2020.
Current Australian tourism trends
Tourism Australia’s MD also outlined focus areas for the year ahead, pointing to the development of premium Indigenous tourism offerings, cruising and self-drive holidays as emerging trends.
“We’re focusing on building our Indigenous tourism offering from a premium point of view. Australia has always been a premium destination, but we do premium a little bit differently here in Australia,” said Harrison.
“It’s really about a sense of place, and our unique and rare contact with our beautiful landscapes. We do believe that at this moment, the world is redefining premium offerings, which leads to wellness and adventure.”
Harrison continued, “We’ve seen a boom in cruising and people discovering our coastline, and beyond that, we’re also seeing a lot more people self-driving, such as Southeast Asian and Chinese markets opting for self-driving, and we have some amazing epic drives that we’re going to start talking a little bit more about on an international stage.”
Luxury travel
Quizzed about the luxury market, Harrison noted that ATE24 services all subsets of the tourism market, from backpackers to luxury travellers, and it does still have a dedicated stream for the luxury market.
“The luxury traveller and buyer is a crucial focus of Tourism Australia, focusing on those who spend more than AUD$1,000 per day in Australia.”
“We have a dedicated stream that just looks after those buyers, just directs them to the product that can cater for their client’s needs, and we do a specific program for them.” She added luxury is a key segment for Tourism Aus.
Harrison also revealed that while Australia’s luxury lodges are oversubscribed and the cities are well-served by luxury products, regional Australia is now being targeted as a key opportunity for growth in the luxury segment.
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The Greek Community of Melbourne (GCM) has welcomed the announcement by Greece’s Ministry of Tourism regarding the immediate operation of an office of the Greek Tourism Organisation (EOT) at the Greek Centre in Melbourne.
On May 21, EOT announced the immediate recruitment for the position of Head of the office based at the Greek Centre in Melbourne , with local jurisdiction covering Australia, New Zealand, and other island nations of Oceania.
Over the past nine years, the GCM has engaged in a series of contacts and démarches with the Greek Government, the relevant ministries, and associated bodies, advocating for the establishment of an EOT office in Melbourne.
The President of the GCM, Bill Papastergiadis, expressed his delight at this significant initiative, emphasising its importance for strengthening ties not only between Greece and Australia, but also between Greece and the Greek diaspora.
“We warmly welcome this move, which will not only strengthen Greek Australian relations but also promote the cultural and tourist image of our homeland,” Mr Papastergiadis said.
“The Ministry of Tourism is becoming another bridge connecting the Greek diaspora in Australia with the motherland. The EOT office in Melbourne will serve as a reference point for promoting Greek tourism and history, as well as preserving Greek cultural heritage through conferences, lectures, and exhibitions, enhancing communication and collaboration with the Greek diaspora.
“We have committed to providing the necessary space in the Greek Centre building to host the EOT offices, offering two years of free use of the facilities, without financial burden, as a return for the government’s support to our community during the economic crisis. Additionally, we maintain open channels of communication with Greek bodies and actively cooperate to facilitate the relevant actions.”
The Ministry of Tourism has confirmed that “the aim is to staff the EOT office in Melbourne immediately as requested by the GCM so that its operations can commence as soon as possible, which is very important ahead of the tourist season.”
READ MORE: Opening of Greek National Tourism Office in Melbourne enters final stage
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Adelaide hotel occupancy ranks number one in Australia and New Zealand
Adelaide has taken out the number one spot both nationally and across the tasman, with the highest hotel occupancy in april across 14 major cities throughout australia and new zealand..
At 78 per cent average occupancy, Adelaide outperformed the nation – topping Perth (76%) which ranked as the second Australian city and third in the list of 14 major cities, and Sydney (74%) as the third Australian city and fifth in the list.
The latest figures from hotel data analytics firm, STR also show “Awesome April 2024” saw accommodation across greater metropolitan Adelaide record its strongest ever monthly revenue. With an average nightly revenue of $2.1 million, it surpasses the previous high of $2.0 million per night in March 2024 – and makes it the only two months ever with average nightly revenue over $2.0 million.
The strong April results can be attributed to the return of the state’s major events, including the AFL Gather Round and LIV Golf Adelaide – in addition to eight conferences hosting a combined almost 3,100 delegates during the month.
The four days of AFL Gather Round helped generate an average nightly revenue of $3.4 million across greater metropolitan Adelaide. The Saturday night of the footy festival was the highest – ranking night ever for revenue at $3.9 million, the Friday night the second highest at $3.7 million, and the Thursday the fourth highest at $3.3 million.
This was followed by LIV Golf Adelaide, which helped generate an average nightly revenue of $2.8 million and an average occupancy rate of 86 per cent. This was supported by 42 per cent of the tournament’s tickets sold to interstate and overseas visitors.
Attributable to Minister for Tourism, Zoe Bettison
We knew Adelaide was the place to be in April and being ranked number one for hotel occupancy in cities across Australia and New Zealand proves it.
The back-to-back accommodation occupancy records in March and April demonstrate why the State Government continues to back blockbuster events such as LIV Golf Adelaide and AFL Gather Round.
The benefits of strong hotel occupancy are felt right across the tourism and hospitality industries, with the boost to visitation helping generate valuable dollars for our restaurants, bars, and cafes.
I have no doubt the thousands of visitors who enjoyed our vibrant city in April have gone on to be advocates for our state, helping to add South Australia to the bucket lists of many potential travellers.
6 years to the Global Goals – here's how tourism can help get us there
Inclusive governance and community engagement in tourism planning and management can aid sustainable development goals. Image: Unsplash/D Jonez
.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Zurab Pololikashvili
.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved .chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} with our crowdsourced digital platform to deliver impact at scale
- Tourism is a significant economic force that has returned close to pre-pandemic figures, with 1.3 billion international travellers and tourism exports valued at approximately $1.6 trillion in 2023.
- The tourism sector must adopt sustainable practices in response to climate change, biodiversity loss and pollution.
- Inclusive governance and community engagement in tourism planning and management are key to ensuring the sector’s support to local identity, rights and well-being.
With mounting challenges to our societies – conflict, geopolitical tension, climate change and rising inequality – we should look to the 17 Sustainable Development Goals (SDGs) and their promise of a shared blueprint for peace, prosperity, people and planet by 2030. However, as UN Secretary General Antonio Guterres reminds us , “that promise is in peril” with the impact of the COVID-19 pandemic having stalled three decades of steady progress.
Tourism can help deliver a better future, and with less than six years to go, it must unleash its full power to achieve this.
Have you read?
Turning tourism into development: mitigating risks and leveraging heritage assets, what is travel and tourism’s role in future global prosperity, how travel and tourism can reach net zero, tourism’s economic boon.
International tourists reached 89% of pre-pandemic levels in 2023. Around 1.3 billion tourists travelled internationally, with total tourism exports of $1.7 trillion, about 96% in real terms of the pre-pandemic value. Preliminary estimates indicate that tourism's direct gross domestic product (GDP) reached $3.3 trillion, the same as 2019, as per our World Tourism Barometer .
Yet, persisting inflation, high interest rates, volatile oil prices and disruptions to trade could impact the pace of recovery. Uncertainty derived from ongoing Russian aggression against Ukraine, the Israel-Hamas conflict and growing tensions in the Middle East, alongside other mounting geopolitical tensions, may also weigh on traveller confidence.
Results from the World Economic Forum’s latest Travel & Tourism Development Index reflect the impact of some of these challenges on the sector’s recovery and travel and tourism’s potential to address many of the world’s growing environmental, social and economic problems.
Therefore, as the sector returns, it remains our responsibility to ensure that this is a sustainable, inclusive and resilient recovery.
The climate imperative
Climate change, pollution and biodiversity loss are making extreme weather events increasingly challenging for destinations and communities worldwide. The tourism sector is simultaneously highly vulnerable to climate change and a contributor to harmful greenhouse gas emissions.
Accelerating climate action in tourism is critical for the sector’s and host communities’ resilience. We are taking responsibility but more needs to be done to reduce plastics, curb food waste, protect and restore biodiversity, and reduce emissions as the demand for travel grows.
The framework proposed by the Glasgow Declaration on Climate Action in Tourism is catalyzing the development and implementation of climate action plans, guided by and aligned to five pathways (measure, decarbonize, regenerate, collaborate and finance). It’s a clear plan to enable the transition towards low carbon and regenerative tourism operations for resilience. Over 850 signatories from 90 countries are involved in innovating solutions, creating resources and connecting across supply chains, destinations and communities.
Leaving no-one behind
Tourism can be a powerful tool to fight inequality, within and between countries but only so long as we also address diversity, equity and inclusion in the sector, provide decent jobs and ensure respect for host communities and shared benefits.
One good example of tourism’s potential to progress shared prosperity is Rwanda’s Tourism Revenue Sharing Programme . Initiated in 2005 and revised in 2022, it aligns conservation efforts with community development. The programme designates a portion of National Parks revenues to ensure that local communities benefit directly from conservation and tourism activities. Initially set at 5%, the share of total revenue now stands at 10% .
Travel & Tourism Development Index 2024
New tools, jobs and values.
Technology, ease of travel and the pandemic have all accelerated changes in how we work. Again, as we progress, we have a duty to ensure we are leaving nobody behind. Education and skills are vital to progressing equality, growth and opportunities for all, making them a cornerstone of the SDGs. However, tourism businesses face a labour shortage to cope with travel demand. We must make tourism more attractive to young people so they see it as a valued career path.
We also need to support micro-, small- and medium-sized enterprises (MSMEs), which make up around 80% of all tourism businesses worldwide and up to 98% in some Group of 20 (G20) economies. While each country’s challenges are different, digitization, market access, marketing and skill gaps are key areas we should address with targeted policies for MSMEs and entrepreneurship.
Measuring impact
Sustainable tourism is only possible if we can properly measure the sector’s impact and progress in three dimensions: economic, social and environmental.
Last March, the UN adopted a new global standard to measure the sustainability of tourism (MST) – economic, social and environmental. Developed under the leadership of UN Tourism and endorsed by all 193 UN member states, the MST statistical framework provides the common language (agreed definitions, tables and indicators) for producing harmonized data on key economic, social and environmental aspects of tourism.
Countries and other stakeholders now have the foundation to produce trustworthy, comparable data for steering the sector towards its full potential. And indeed, over 30 countries and subnational regions have already implemented the flexible MST framework, focusing on the data most relevant to their sustainability efforts.
Centring community wellbeing
Increasingly, communities worldwide demand a tourism sector that respects their identity, rights and wellbeing.
Transforming the sector requires rethinking governance as more holistic with a whole-government approach, multi-level coordination between national and local policies and strong public-private-community partnerships. Listening and engaging residents in tourism planning and management is at the core of the sector’s future.
Take Barcelona as an example. Here, e tourism represents 14% of the city’s GDP. The Tourism and City Council was created in 2016 and relies on citizen participation to advise the municipal government on tourism public policies. This initiative demonstrates the advancement of tourism governance from classic public-private collaboration to public-private-community. Therefore, issues around the visitor economy become those for official city consideration.
Delivering on tourism’s potential
We urgently need to grow investment in tourism. The data is encouraging: the UN Conference on Trade and Development World Investment Report 2023 shows that global foreign direct investment across all sectors, tourism included, reached approximately $1.37 trillion that year, marking a modest increase of 3% from 2022.
At the same time, we need to ensure this investment is targeted where it will make the most significant and most positive impact by building greater resilience and accelerating the shift towards greater sustainability.
The significant benefits tourism can offer our economies and societies, as well as the challenges obstructing us from fully delivering on this potential, are now more widely recognized than ever.
Tourism is firmly on the agenda of the UN, G20 and Group of Seven nations and the Forum. Delivering on this potential, however, will require political commitment and significant investment. But given what is at stake and the potential benefits to be gained, it should be seen as a huge opportunity rather than a daunting challenge.
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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.
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The Hon Madeleine King MP Minister for Resources and Minister for Northern Australia Media Releases Speeches Transcripts Enter search terms Home King Media Releases More opportunities to work with the EU on critical minerals More opportunities to work with the EU on critical minerals
Joint media release with Minister for Trade and Tourism, Senator Don Farrell.
Australia and the European Union (EU) have agreed to work more closely together to strengthen the supply of critical minerals which is key to achieving the transition to net zero.
A Memorandum of Understanding was signed today by Minister for Trade and Tourism, Senator Don Farrell, Minister for Resources and Northern Australia, Madeleine King, EU Executive Vice President and Commissioner for Trade, Valdis Dombrovskis, and EU Commissioner for the Internal Market, Thierry Breton.
This close partnership provides a platform for deeper links between Australia and European Union critical and strategic materials supply chains, greater science, technology and innovation collaboration, and the development of environmental, social, and governance (ESG) standards.
The partnership follows the recent implementation of the EU’s new Critical Raw Materials Act , which creates new opportunities for the Australian mining and manufacturing sectors, as well as the essential workers in these industries.
Details of the Australia-EU strategic partnership on sustainable critical and strategic minerals is available on the Department of Industry, Science and Resources website.
Quotes attributable to the Trade & Tourism Minister, Don Farrell:
“Australia has some of the largest deposits of critical minerals on earth – minerals that are necessary parts of everything from electric vehicles to wind turbines.
“Our partnership will encourage investment from the EU into Australian renewable energy projects, including the local manufacturing industry boosted by the Albanese Labor Government’s $22.7 billion Future Made in Australia package.
“Investment from our international partners is vital to achieving Australia’s full potential as a Renewable Energy Superpower – and helps create more secure well-paid jobs for Australians.”
Quotes attributable to the Federal Minister for Resources Madeleine King:
“Australia’s Critical Minerals Strategy and the Future Made in Australia ambition aims to establish Australia as a clean energy superpower by 2030.
“Australia has the critical minerals, well established global supply chains and high environmental and social governance standards that support the development of our critical minerals sector.
“Those advantages will be crucial to help develop and grow the low-emissions technologies that will help the world to lower emissions and to help Australia and our export partners achieve our climate commitments.
“The clean energy transition will ride on the back of Australia’s critical minerals.”
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Tourism Australia produces a range of industry, media and special interest newsletters. Keep up to date and subscribe to the newsletters you would like to receive via email. Subscribe now Acknowledgement of Country. We acknowledge the Traditional Aboriginal and Torres Strait Islander Owners of the land, sea and waters of the Australian ...
Tourism Australia. Tourism Australia is the Australian Government agency responsible for promoting Australian locations as business and leisure travel destinations. The agency is a corporate portfolio agency of the Department of Foreign Affairs and Trade, [3] and employs 198 staff (including 80 staff at overseas offices). [8] It works closely ...
The Minister for Trade and Tourism is a portfolio in the Government of Australia, falling within the Department of Foreign Affairs and Trade (DFAT). The position is currently held by Senator Don Farrell, sworn in as part of the Albanese ministry on 1 June 2022, following the Australian federal election in 2022. The minister is assisted by the Assistant Minister for Trade, held by Senator Tim ...
WTO Steel Products dispute. 27 March 2024. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Joint Ministerial Statement. 15 November 2023. Statement on AU-EU Free Trade Agreement. 30 October 2023. Sixth Philippines-Australia Ministerial Meeting. 10 October 2023.
*Product Disclaimer: Tourism Australia is not the owner, operator, advertiser or promoter of the listed products and services.Information on listed products and services, including Covid-safe accreditations, are provided by the third-party operator on their website or as published on Australian Tourism Data Warehouse where applicable.
Don Farrell was born in Murray Bridge, South Australia, and is a fourth generation South Australian. While studying law at the University of Adelaide, he worked as a shop assistant and later joined the South Australian Shop Distributive and Allied Employees' Association, beginning a 32-year career working for the rights of retail and fast-food workers. Don led the union at the state and ...
Tourism Australia is the Australian Government agency responsible for growing demand for Australia as a tourism destination, both in Australia and overseas. Our corporate purpose, as laid down in the Tourism Australia Act 2004, is to grow demand and foster a competitive and sustainable tourism industry.
We provide statistics and research to assist the government, the visitor economy and Australian businesses. Find out more at Tourism Research Australia. Tourism ministers' meetings. Australian and state and territory government tourism ministers regularly hold meetings to work together on: progressing the national long-term tourism strategy ...
Media release. 27 October 2021. Minister for Trade, Tourism and Investment Dan Tehan has welcomed the appointment of hotel industry leader Michael Issenberg as the new Chair of Tourism Australia. Mr Tehan said Tourism Australia would play an important role supporting our tourism sector as restrictions are lifted and international tourism resumes.
View the latest report on Australian tourism's economic value. Tourism Research Australia (TRA) is Australia's leading provider of quality tourism intelligence across both international and domestic markets, providing statistics and research to assist the government, the visitor economy and Australian businesses.
Tourism Ministers and Tourism Senior Officials met in Sydney on 17 March 2023 to discuss challenges and priorities to sustain the growth of Australia's visitor economy. 17 March 2023. This was the second meeting of the nation's Tourism Ministers under the Albanese Government chaired by Minister for Trade and Tourism, Senator the Hon Don ...
Explore our webinars, seminars, international tradeshows, and other Austrade events in Australia and around the world. PLMA Chicago 2024; Study Australia Education Exhibition Taiwan 2024; ... Senator Farrell was sworn in as Minister for Trade and Tourism on 1 June 2022. For further information and Ministerial media releases, please see the ...
The recovery in domestic tourism spending in 2022, to around or above pre-pandemic levels, is evident in all states and territories (Graph 7). Naturally, states that experienced longer and stricter COVID-19 restrictions had much more significant declines in tourism activity over 2020 and 2021.
In January, we announced that eligible international students and working holiday makers who arrive in Australia from 19 January 2022 will have their visa application fees refunded for a period of 8 weeks and 12 weeks respectively. The Government has also temporarily removed the limit on student visa holders' working hours until the end of 2022.
While domestic travel stabilised in 2023, after a rapid bounce back in 2022 from the pandemic, the report forecasts that by 2028, domestic visitor spend will reach $172.6 billion, some 61 per cent higher than the pre-pandemic level. Quotes attributable to the Minister for Tourism, Don Farrell: "Australia is the best place to live, work and ...
The report forecasts a positive outlook for the visitor economy. In the next 5 years, we predict both international and domestic tourism will continue to grow. We expect: international travel to Australia will exceed its pre-pandemic level in 2025. international spend in Australia will exceed its pre-pandemic level in 2024.
The Australian Government released THRIVE 2030 to rebuild and return the visitor economy. The strategy sets a target of returning visitor expenditure to pre-COVID levels of $166 billion by 2024 and growing it to $230 billion by 2030, and it includes actions for governments and industry under three key themes: Collaborate. Modernise. Diversify.
Tourism Australia is the Australian Government agency responsible for the promotion of Australia as a destination for leisure and business tourism, including for business events. ... Tourism Australia's marketing, trade and consumer research programs are focused on 17 key international markets with the greatest potential to deliver on the ...
Inbound tourism to Australia jumped dramatically during the lifetime of the department, from 2 million visitors in 1988 to 3 million visitors in 1994. ... The Department was an Australian Public Service department, staffed by officials responsible to the Minister for Tourism, initially Alan Griffiths (until March 1993) and then Michael Lee.
The Australian Tourism Exchange (ATE) will return to Brisbane / Meanjin next year with Australia's largest annual tourism trade event to be held at the Brisbane Convention & Exhibition Centre from Monday, 28 April 2025 to Thursday, 1 May 2025. ... Queensland's Tourism Minister, Michael Healy, said Queensland is the country's favourite ...
The 44th edition of Tourism Australia's largest annual trade event, the Australian Tourism Exchange 2024 (ATE24), has officially opened in Melbourne with thousands of delegates taking part in ...
Post-pandemic tourism recovery. Don Farrell, Federal Minister of Trade and Tourism said: "There's no doubt that Australian tourism, and the tourism industry, has been through some tough times over the past few years, not least, of course, is the COVID pandemic. But the good news is that the industry is recovering well." Farrell cited a positive and growing contingent of UK visitors and ...
"The Ministry of Tourism is becoming another bridge connecting the Greek diaspora in Australia with the motherland. The EOT office in Melbourne will serve as a reference point for promoting Greek tourism and history, as well as preserving Greek cultural heritage through conferences, lectures, and exhibitions, enhancing communication and ...
Attributable to Minister for Tourism, Zoe Bettison We knew Adelaide was the place to be in April and being ranked number one for hotel occupancy in cities across Australia and New Zealand proves it. The back-to-back accommodation occupancy records in March and April demonstrate why the State Government continues to back blockbuster events such ...
Here, e tourism represents 14% of the city's GDP. The Tourism and City Council was created in 2016 and relies on citizen participation to advise the municipal government on tourism public policies. This initiative demonstrates the advancement of tourism governance from classic public-private collaboration to public-private-community.
The Greek Community of Melbourne (GCM) has enthusiastically welcomed the announcement by Greece's ministry of tourism regarding the immediate establishment of an office of the Greek Tourism ...
Joint media release with Minister for Trade and Tourism, Senator Don Farrell. Australia and the European Union (EU) have agreed to work more closely together to strengthen the supply of critical minerals which is key to achieving the transition to net zero. ... Quotes attributable to the Trade & Tourism Minister, Don Farrell: "Australia has ...