The latest International Visitor Survey (IVS) data reveals a mixed picture for Australia’s tourism industry as it awaits full recovery.
While holiday visitation remains stable, the long-anticipated growth in international arrivals is yet to materialise, underscoring the continuing challenges of a sector still in recovery.
While holiday travel has driven Australia’s international tourism recovery, it remains at 79 per cent of pre-pandemic levels. Accordingly spending by holiday visitors surpassed 2019 figures by 4 per cent but this modest increase fails to account for inflation or the significant growth the industry has missed over the past five years.
Australian Tourism Export Council managing director Peter Shelley said Australia’s export tourism industry was a major contributor to the economy in export revenue, GDP and employment particularly in regional areas and is deserving of government attention to support its full recovery.
“Although some tourism export businesses are back in full stride, there are still a significant number of operators, particularly smaller-scale businesses in regional areas, which have been delayed in re-engaging international markets and are continuing to struggle,” Shelley said.
“Australia’s international tourism recovery is progressing, but it remains uneven, creating a patchwork of outcomes across the country, highlighting the need for targeted support to ensure all parts of our sector can benefit from the recovery.”
Over the past six months, ATEC has engaged over 300 members through regional roundtables, industry surveys, and leadership forums to identify key barriers to recovery, including persistent workforce shortages (particularly in regional areas), reduced aviation connectivity to iconic destinations like Uluru and Kangaroo Island, and rising operational costs straining profitability across the sector.
“The cost of travel to Australia has increased significantly and shifts in travel behaviours and global economic uncertainties are factors which are not only impacting the tourism recovery but are also delaying the return of key international markets such as China,” Shelley said.
“Regional tourism, a critical economic driver for Australia, faces additional challenges in this uneven recovery with tourism contributing at least 20 per cent of local jobs in several regions, therefore its success is vital to sustaining regional economies and communities.
“Australia’s tourism industry has proven its resilience, but the road to full recovery is long. By addressing these challenges collaboratively, and ensuring targeted investment in the upcoming Federal Budget, we can position Australia to achieve the sustainable export growth the Government has projected in its THRIVE 2030 strategy.”
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