This past year, domestic tourism has cooled after a strong post-pandemic rebound. For the year ending March 2025, domestic visitor numbers fell by 1% and spend dropped by 1.5%. Victoria and the ACT bucked the trend with spending gains—up 1% and 10% respectively—but South Australia’s domestic spend nose-dived by 9%. Queensland and New South Wales recorded declines in both visitors and expenditure, a signal that Australians’ appetite for local travel has hit a plateau, at least for now. The data also make clear that large annual price hikes are over, as value-conscious consumers become more discerning in how and where they travel.
These results must be interpreted with care. The shift of Easter holidays from March 2024 to April 2025 skewed quarterly comparisons. Additionally, severe weather—including Queensland flooding and Victorian bushfires—impacted movement and sentiment in affected regions.
In stark contrast, the international market is roaring back. In the year to March 2025, international visitor arrivals surged 7%, while international visitor spend leapt 15%, reaching $52.6 billion. Victoria shone, posting not only a 12% increase in total visitor nights but also a robust 20% spike in spend from inbound travellers. A weaker Australian dollar played its part, making Australia more affordable for international tourists while also increasing the cost of outbound travel for locals.
Australia continues to attract growing demand from key markets like China, the UK, and the US, and we’re seeing promising growth in holiday and education travel segments. Notably, the average international visitor’s spend per night rose by 23% to $144—a sign of premium experiences gaining traction.
The divergent forces in the data present both opportunities and challenges. At ODIN360, our focus is on helping clients navigate this landscape with clarity—responding nimbly to international opportunities while reimagining domestic offerings to drive renewed engagement and growth. The market’s evolving dynamics demand more than statistics: they require insightful strategy, targeted product development, and a relentless focus on the experiences that capture hearts—both of new visitors and Australians exploring their own backyard.