Tourism Research Australia releases Annual Benchmark Report 2024 with ATEC highlighting inbound holiday recovery still lagging 

Tourism Research Australia has released their Annual Benchmark Report 2024 as an important national stock take of Australia’s visitor economy. The annual benchmark report presents insights on demand and supply trends in Australia’s visitor economy.

Tourism Research Australia (TRA) produces this annual report to:

• detail the trends in travel demand, supply-side capacity, and the future of the Australian visitor economy      

• highlight challenges and opportunities for the visitor economy arising from these trends

• help the industry and governments understand and adapt to the changing demand and supply environment.

Key message from the report include:

In 2024, Australians continued to prioritise travel.

• Demand for domestic trips remained high.

• There were 2.4 million more domestic overnight trips in 2024 (up 2.1%) than in 2023.

• However, travellers adjusted travel and spending patterns in response to cost pressures.

International arrivals into Australia increased strongly.

• The number of international visitors to Australia increased by 15% in 2024 compared with 2023.

• However, the total number of short-term visitor arrivals remained below the previous peak.

The visitor economy delivered social and environmental benefits for Australia. For example:

• Australia’s environmental sustainability ranking improved

• there was record high engagement with First Nations experiences

• international visitor appreciation of Australia as a destination was at a record high.

Measures of supply and capacity of the visitor economy indicate the sector expanded in 2024.

• The visitor economy sustained a record high number of filled tourism jobs and tourism businesses.

• It also offered more accommodation options and more flights to service the demand of travellers.

• However, some supply constraints, such as skills shortages, were still evident.

The high level of government and private investment in the sector gives confidence for future growth.

• The number and value of major tourism projects increased which will further improve Australia’s tourism offerings.

• The 2032 Brisbane Olympic and Paralympic Games has led to more investment activity in Queensland. It adds to the positive outlook for the visitor economy as host nations can see economic and tourism benefits from hosting these major events.

Australian Tourism Export Council notes that while the report confirms growth in overall international arrivals, ATEC warns the headline figures mask a more complex picture, particularly in the high-value holiday market.

ATEC Managing Director Peter Shelley notes “the spend is certainly positive, however, the reality is that international holiday visitation is still around 20% below 2019 levels, and that’s a serious concern.

“We’re seeing stronger recovery in visiting friends and relatives (VFR) and education travel sectors, but the pure holiday market, which is the high-value visitor at the heart of Australia’s export tourism offering, is lagging.”

The report reveals outbound travel by Australians hit a record 11.6 million trips in 2024, an increase not being matched by inbound holiday growth.

Shelley added “at a time when Australians are travelling overseas in record numbers, we’re not seeing the same pace of recovery in inbound holiday visitation, meaning more tourism dollars are flowing out than coming in, and that’s a missed economic opportunity.”

The report confirms China remains the top market by spend, but the volume of arrivals are still well below pre-pandemic levels, with growth from other markets such as South Korea, India, and Japan offering promise.  Shelley said rebuilding the China market, and connecting to emerging markets must be a priority.”

ATEC’s 2025 policy platform sets out a practical plan for rebuilding the sector’s strength and resilience, including:

•Targeted funding for tourism distribution partners to reconnect with global markets

•Investment in Market Host training programs to help businesses develop and deliver culturally diverse visitor expectations

•Invest in regional aviation to support regional access and dispersal

•Strategic workforce development to address ongoing skills gaps – including the national shortage of tour guides

"Regional tourism businesses are still doing it tough, with workforce shortages, cost pressures and uneven demand highlighting the need for targeted support beyond the capital cities."

With the government’s THRIVE 2030 strategy aiming for $230 billion in visitor spend by the end of the decade, ATEC is calling for strategic investments to drive international holiday market growth and capture new opportunities.

“If we want to hit the THRIVE targets, we have to back the parts of the sector that are still recovering and that means investing in the development of quality tourism products and experiences as well as the need to significantly increase funding for Tourism Australia to have a stronger presence in an increasingly competitive global international tourism market.”  

Download the Tourism Australia Report