According to the World Travel & Tourism Council (WTTC), Australia is set to end the year with the travel and tourism sector contributing $314.4 billion to the economy.
The latest release of all arrivals and departures in Australia provides key trends driving the rise in the sector’s revenue.
Rise in short-term international travel
According to travel data from the Australian Bureau of Statistics for October 2025, total international arrivals, including those by private jet charter, rose by 8.3%.
Similarly, total departures increased by 9.3% in October 2025 compared to the previous year.
The growth in the total number of overall border crossings is mainly driven by short-term movements.
Short-term visitor arrivals saw a 9.3% rise, while short-term resident returns increased by 7.9% year-on-year.
Resident travel exceeds pre-pandemic levels
While visitor arrivals in October 2025 were still 4.3% lower than the pre-COVID levels of October 2019, Australian resident travel has fully recovered and surpassed previous benchmarks.
Recent data reveal short-term resident returns were 11.5% higher than the levels recorded before the pandemic.
While countries like Italy and Japan are seeing an increase in visitors from Australia, departures to the U.S. and the UK have declined significantly compared to pre-pandemic levels.
Arrivals from the UK and the U.S. have also fallen below pre-pandemic levels, while visitor arrivals from South Korea have more than doubled, rising from 19,820 in 2019 to 39,730 in 2025.
Most visitors came from New Zealand, while Indonesia was the top destination for Australians
As one of Australia’s closest allies, visitors from New Zealand accounted for 19.0% of all arrivals, with 140,970 trips recorded in October 2025.
Next to Australia, arrivals from China are the second largest, with the number of visitors increasing from 43,060 in October 2023 to 78,170 in October 2025.
On the other hand, Indonesia remained the most popular destination for Australian residents returning from short-term trips, accounting for 13.9% of all 177,050 returns.
Travelling to Indonesia, especially Bali, one of the most popular tourist destinations, grew by about 5% this year from last year's figure.
Travels to Japan surged
There has been a significant increase in Australian residents traveling to Japan.
The overseas arrivals and departures report showed that the number of returns from Japan rose from 60,150 in October 2019 to 102,220 in October 2025, overtaking the United States to become the third most popular destination after Indonesia and New Zealand.
The Asian country has rapidly risen as one of the top destinations for snow sports, cherry blossoms, sightseeing, and other tourist adventures.
Decline in long-term and permanent movements
In contrast to the growth in short-term travel, permanent arrivals decreased by 10.2%, and long-term resident returns fell by 6.8%. Similarly, long-term resident departures dropped by 9.2%.
Despite the Australian government providing 185,000 spaces for permanent migration this year, the number of people securing the spots is dropping.
The drop could signal that more people are finding Australia to be a less attractive destination for permanent residence.
Challenges in securing visas may also pose as a significant hurdle responsible for the decline in permanent stays.
Starting in 2025, Australia scrapped the Global Talent and Distinguished Talent streams in the migration program, replacing them with a single National Innovation visa.
The new visa targets skilled and talented individuals, specifically researchers, entrepreneurs, and innovative investors.
This change limits the category of people who qualify for migrating to Australia and could directly impact the number of permanent arrivals.
Most visitors to NSW, while Queensland recorded the highest number of resident returns
NSW recorded the highest number of short-term visitor arrivals among the states, a total of 284,370, representing an 11.3% increase from the previous year.
In contrast, the Northern Territory recorded the fewest visitor arrivals at just 5,050.
Additionally, Queensland saw the highest year-on-year percentage increase in residents returning from short-term overseas trips.
The state recorded 230,030 returns, showing an 18.7% growth from the previous year.
Conversely, the Australian Capital Territory was the only region to record a decline in resident returns.
The ACT saw a 2% decrease in the number of resident returns compared to the prior year.
Most departures driven by leisure and family rather than business
The Australian Travel Industry Association (ATIA) travel report revealed that approximately 60% of short-term movements mainly drive the growth in the total number of border crossings, rather than tourism or business.
Visiting friends and family accounts for roughly one-quarter to one-third of all outbound trips.
In contrast, business travel remains comparatively low, suggesting a gradual change in corporate travel habits compared to vacationing.
Departures from Western Australia were mainly to Singapore, followed by the UK. At the same time, the USA was the top source country for both the Northern Territory and the ACT.
Need for increased competitiveness
Australia’s travel story in 2025 shows a clear change in mindset.
People are choosing trips that feel closer, easier, and better value, even if that means skipping places they once dreamed about.
Commenting on a recent Australia travel report, ATIA CEO Dean Long noted the increase in outbound movements to Japan, China, and other Asian countries.
According to Long, the current trend reflects how consumers respond to affordability and improved airline capacity.
The CEO acknowledged that many Australians are faced with the high costs of long travels, stating the need for airlines to have more competitive pricing across key routes.
If these patterns continue, travel businesses and policymakers will need to adapt to travelers who think short-term and expect more choice without higher prices.
22°C