Australian tourism bodies respond to latest International Visitor Survey

The Australian Tourism and Export Council (ATEC), Australian Tourism Industry Council (ATIC), and Destination NSW have responded to the latest International Visitor Survey (IVS) released yesterday by Tourism Research Australia.

While ATEC and ATIC express their concerns on the slow recovery of international tourism to Australia, Destination NSW is buoyed by the survey results identifying that visitor spending has broken records in NSW, reaching $31.3 billion for domestic overnight expenditure across the state in the year ending September 2024.

The survey revealed a mixed picture for Australia’s tourism industry. 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.

ATEC responds
ATEC highlights that “while holiday travel has driven Australia’s international tourism recovery it remains at 79% of pre-pandemic levels.  Accordingly spending by holiday visitors surpassed 2019 figures by 4% but this modest increase fails to account for inflation or the significant growth the industry has missed over the past five years.”

ATEC 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.

Shelley notes “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.

"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.

Shelley added "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.

“Regional tourism, a critical economic driver for Australia, faces additional challenges in this uneven recovery with tourism contributing at least 20% 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.”

ATIC responds
Australian Tourism Industry Council also commented on the latest survey results – drawn to the fact that figures released by Tourism Research Australia showed that international visitor numbers to Australia had still not recovered from COVID, despite borders having been open for two years.

Australian Tourism Industry Council Chair Evan Hall said international holiday visitor numbers were still 2% down from pre-COVID levels and noted “these tourists would have spent an additional $4.7 billion in the Australian economy which would have sustained 30,700 jobs.

“As the economy stagnates it is critical the Australian Government re-invests in marketing to recover our international holiday visitors, particularly to regional destinations.

“While international holiday visitors remain down, Australians are holidaying outside of Australia in record numbers.”

Hall said this was having a devastating impact on tourism business, particularly those in regional destinations who were seeing a decline in local tourism while international visitors were slow to return.

“The Australian Government has underinvested in tourism marketing. International marketing funding has declined in real terms and should have been significantly increased to recover our international visitors.

“The Australian Tourism Industry Council calls on the Federal Government to reinvest an additional $30 million into tourism marketing to win back the tourists now that the economy needs them the most.”

Destination NSW responds
Destination NSW is buoyed by the survey results identifying that visitor spending has broken records in NSW, reaching $31.3 billion for domestic overnight expenditure across the state in the year ending September 2024.

The latest Tourism Research Australia data shows Sydney also achieved its highest total domestic expenditure on record at $15.8 billion.

NSW was the number one destination for Australians during the period, drawing 37.3 million domestic overnight visitors (up 3.2%).

NSW received a total of 100.5 million domestic and international visitors during the period, who spent $52.9 billion, up 5.8% compared to the year ending September 2023.

Destination NSW Acting Chief Executive Stephen Mahoney noted “NSW has the leading visitor economy in the nation and received the highest number of visitors, visitor nights and expenditure in the year ending September 2024.

“The NSW Government’s Visitor Economy Strategy review has adopted an ambitious goal of $91 billion in annual visitor economy expenditure by 2035 and its experience-led approach to tourism will ensure the state continues to draw visitors seeking authentic connections with local culture and natural wonders.

“Australians continue to prioritise travel despite cost-of-living pressures and NSW is their destination of choice.

“The meaningful moments that a trip to NSW brings through the diversity of visitor experiences on offer has ensured that visitors return over and over again.”

Regional NSW continued to be the best performing destination across regional Australia in terms of visitors and nights, with 64.6 million international and domestic travellers visiting regional NSW in the year ending and spending $26.2 billion across the period, an increase of 30.7% compared with the year ending September 2019.

The North Coast celebrated the highest increase in domestic overnight visitor numbers during the period (up 5.8%), while visitor expenditure was up 2.1% to $4.8 million.

Let’s Go Surfing Byron Bay Surf School Director Brenda Miley shared "The iconic road trip to Byron Bay is the quintessential Aussie summer experience. Instead of looking overseas for summer family trips, Aussies are turning to good, old-fashioned fun in the sun in beautiful Byron Bay.

“As pioneers of the surfing industry, we're so excited to see it. We've been enjoying the great surf and amazing community in Byron for years and we couldn't be more stoked about the growth in domestic tourism on the North Coast. And we're looking forward to a great summer season."

NSW was the top destination in the country for international visitors, nights and expenditure.

There were 3.7 million international visitors to the state in the year ending September 2024 (up 18.4% compared to the year ending September 2023). International visitation to the state reached 84% of pre-pandemic levels (compared to year ending September 2019), while the number of nights spent in NSW and expenditure exceeded 2019 levels.

International arrivals at Sydney Airport are predicted to surpass 2019 levels over summer, accelerated by Destination NSW’s Aviation Attraction Fund, with new routes by Turkish Airlines and Juneyao Air landing at Sydney Airport this month.

Sydney Airport Chief Executive Scott Charlton added “Sydney Airport is preparing for its busiest Christmas season for international travel on record, with 300,000 more passengers forecast than the same period in 2019.

“Around 5.8 million domestic and international passengers are expected to travel through our terminals from 13 December 2024 to 27 January 2025, up 460,000 on last year.”

Access the Tourism Research Report 

Image. Credit: Let’s Go Surfing Byron Bay