OECD Tourism Trends and Policies 2024

Australia

Tourism in the economy and outlook 

Tourism’s contribution to the Australian economy continues to recover from the shock triggered by the COVID-19 pandemic. Tourism accounted for 2.5% of total GDP or AUD 63.0 billion in financial year 2022-23, up from a low of 1.4% of GDP in 2020-21. Prior to the pandemic (2018-19), tourism’s share of national GDP was 3.1%. In 2022-23, tourism contributed to 626 400 jobs or 4.1% of total employment, but remains below the 2018-19 record level of 700 900 jobs or 5.1%. Tourism-related exports accounted for 58% of total service exports in 2022-23, up from a low of 38% in 2021-22.

In 2023, Australia recorded 7.2 million international visitor arrivals, or 75.9% of 2019 levels, with steady growth since early 2022. Spending by international tourists reached AUD 27.9 billion, with 242.3 million nights in official accommodation in 2023, recovering to 89% and 88% of 2019 levels, respectively. Australia's top 5 international tourist markets during this period were New Zealand (18%), the United States (9%), the United Kingdom (8%), China (7%), and India (6%).

Domestic overnight trips have seen growth with 112.6 million trips in 2023, sitting 4% below pre-pandemic levels. Total domestic overnight spend for 2023 was AUD 109.3 billion in nominal terms, up 35% on the same period in 2019. The increase in spend is in part attributable to higher prices for travel and related services.

International tourist arrivals are expected to exceed pre-pandemic levels by 2025 to reach 10.2 million. By 2028, international visitation is forecast to be 12.1 million visitors, with spend in Australia of AUD 50.7 billion. Domestic tourism is projected to grow to 128.9 million domestic overnight trips by 2028, up 10% on 2019.

Tourism governance 

The Australian Trade and Investment Commission (Austrade) is the federal government agency responsible for tourism policy, programmes, and research. Within Austrade, Tourism Research Australia provides international and domestic tourism data, statistics, and analysis.  

Tourism Australia is the government agency responsible for attracting international visitors to the country. Tourism Australia works closely with Australia’s state and territory tourism organisations and with key partners to roll out international tourism campaigns and to support the Australian tourism industry to grow tourism.

Austrade works with the Department of Foreign Affairs and Trade to strengthen bilateral tourism relationships and leverage key multilateral tourism bodies. All state and territory governments in Australia incorporate tourism into their portfolios to ensure effective international and domestic tourism promotion and sector development. The Tourism Ministers' Meetings (TMM) bring together tourism ministers from the federal, state and territory governments to discuss tourism policy matters of mutual interest. This work is supported by the Australian Standing Committee on Tourism (ASCOT), which is chaired by Austrade and includes representatives from Tourism Australia, state and territory tourism organisations, and relevant state departments with responsibility for tourism policy. Representatives from the tourism sector and other relevant federal and state departments can be invited to attend ASCOT and TMM meetings, as necessary. Austrade hosts a regular stakeholder engagement forum with a wide range of tourism industry bodies.

A THRIVE 2030 Implementation Advisory Group composed of a mix of industry leaders and government officials’ reviews progress against the THRIVE 2030 strategy and provides advice to the Australian Government Minister for Tourism to achieve recovery from the COVID-19 pandemic and long-term sustainable tourism growth.

Tourism Australia’s budget allocation was AUD 184.5 million to support its activities during financial year 2023-24. 

Australia: Organisational chart of tourism bodies

Source: OECD, adapted from the Australian Government, 2024.

Tourism policies and programmes

THRIVE (The Re-Imagined Visitor Economy) 2030 is Australia’s national strategy for the long-term sustainable growth of the visitor economy. The Strategy focuses on seven policy priority areas with 64 strategic actions for all levels of government and the tourism sector:

• Deliver success through comprehensive collaboration.

• Improve data and insights.

• Grow a secure and resilient workforce.

• Embrace leading edge business practices.

• Enhance visitor infrastructure.

• Build markets and attract visitors.

• Grow unique and high-quality products, including First Nations experiences.

There are 21 federal government agencies involved in the delivery of the strategy. The priority actions that have been completed are often related to the setting up of the governance structure like appointing advisory councils and establishing working groups. As of May 2024, 22 actions have been completed, 40 actions are underway, and two actions are pending.

The Strategy focuses on the pandemic recovery phase through to the end of 2024. The target to return to pre-pandemic visitor expenditure of AUD 166 billion by December 2024 was exceeded in 2023. The long-term target is to grow the visitor economy to AUD 230 billion by 2030, with regional destinations outside of state and territorial capital cities to comprise approximately 44% of this goal. The Strategy will be reviewed in 2024 to check progress against the targets set and the associated Action Plan; as well as to design the priority actions for the future Consolidation (2025-27) and Growth phases (2028-30) of the Strategy. 

As part of the Strategy delivery, Tourism Australia is focusing on rebuilding visitation and spend from key international markets, concentrating on trade and consumer marketing programmes to help the industry return to 2019 levels. This includes actions to maximise the global impact of the Come And Say G’Day campaign, with a campaign launch in China, convert demand by working with airline and key distribution partners; launch a major events strategy which began with the FIFA Women’s World Cup hosted by Australia and New Zealand in 2023; promote work and travel around Australia to prospective working holiday makers; elevate and championing Indigenous, sustainable and accessible tourism; and drive consideration and conversion of business events.

In May 2023, the International Diversification Strategy for the Visitor Economy discussion paper was released with the full strategy to be released before the end of 2024. Tourism is also one of 10 priority sectors in the Invested: Australia’s Southeast Asia Economic Strategy to 2040, which sets a practical pathway to significantly increase two-way trade and investment between Australia and Southeast Asia. Recommendations are included to expand tourism promotion and build industry capability to meet Southeast Asian demand.   

Other key policy responses to challenges and opportunities for Australian tourism include:  

• Preparing an Aviation White Paper to set long-term policy for growth and innovation in aviation to ensure efficiency, sustainability, consumer protections, accessibility, and inclusion, ensuring there are appropriately skilled workers within the aviation sector (broader government initiative).  

• Supporting visitor economy businesses to implement and improve sustainability practices. A Sustainability Framework, released in late 2023, establishes a national definition and vision for sustainable tourism that considers environmental, cultural, social, and economic factors. The complementary Sustainable Tourism Toolkit provides guidance and advice to assist the large number of micro and small tourism businesses implement sustainability practices.

• Examining workforce issues, including the Employment White Paper, the Migration Strategy, and a parliamentary inquiry into Northern Australia workforce needs. Non-traditional workforces are also being encouraged into the tourism workforce (Box 2.2). Austrade developed a Visitor Economy Workforce and Skills Interim Action Plan to capture workforce capability actions across Australian Government, State and Territory Governments and industry.

• Supporting First Nations communities including through the First Nations Tourism Mentoring Program, launched in February 2023 with a budget of AUD 10 million, and delivered by the National Indigenous Australians Agency. This programme aims to foster the growth of the First Nations tourism sector and embed First Nations culture in the tourism sector.  

Statistical Profile

Australia: Domestic, inbound and outbound tourism

	2018	2019	2020	2021	2022
TOURISM FLOWS, THOUSAND
Domestic tourism
Total domestic trips	310 166	365 797	236 706	242 543	309 626
Overnight visitors (tourists)	104 822	117 448	72 514	82 074	108 212
Same-day visitors (excursionists)	205 344	248 349	164 192	160 469	201 414
Nights in all types of accommodation	371 528	417 907	275 404	321 109	399 726
Hotels and similar establishments	95 298	101 047	51 589	67 162	106 270
Other collective establishments	94 416	111 905	79 557	90 006	104 781
Private accommodation	181 814	204 955	144 258	163 940	188 675
Inbound tourism
Total international arrivals	9 246	9 466	1 828	246	3 694
Overnight visitors (tourists)	..	..	..	..	..
Same-day visitors (excursionists)	..	..	..	..	..
Top markets
New Zealand	1 385	1 434	243	97	698
United Kingdom1	733	716	201	22	399
United States	789	818	189	17	326
India	358	399	84	13	303
Singapore	448	479	58	16	296
Nights in all types of accommodation	273 793	274 477	68 973	16 779	126 098
Hotels and similar establishments	29 232	28 840	..	..	..
Other collective establishments	135 269	138 774	..	..	..
Private accommodation	109 293	106 863	..	..	..
Outbound tourism
Total international departures	11 061	11 309	2 832	301	5 226
Overnight visitors (tourists)	..	..	..	..	..
Same-day visitors (excursionists)	..	..	..	..	..
Top destinations
New Zealand	1 437	1 463	439	160	708
Indonesia	1 280	1 401	310	2	612
United States	1 096	1 056	236	17	463
United Kingdom1	663	663	147	15	416
India	393	426	186	12	329
TOURISM RECEIPTS AND EXPENDITURE, MILLION AUD
Inbound tourism
Total international receipts	63 253	68 949	38 382	..	..
International travel receipts	60 276	65 484	37 520	22 615	34 755
International passenger transport receipts	2 977	3 197	861	..	..
Outbound tourism
Total international expenditure	56 853	59 507	11 573	..	..
International travel expenditure	50 043	50 778	11 060	1 570	23 469
International passenger transport expenditure	7 339	7 737	1 742	..	..

.. Not available

1. United Kingdom including, Channel Islands and Isle of Man.

Source: OECD Tourism Statistics (Database).

Statlink

Australia: Enterprises and employment in tourism

	Number of establishments1	Number of persons employed
	2021	2018	2019	2020	202&	2022
Total	..	700 900	597 800	402 000	442 600	626 400
Tourism industries	358 203	678 200	581 000	391 800	432 900	610 200
Accommodation services for visitors	14 351	85 300	88 900	53 900	61 500	84 400
Hotels and similar establishments	..	..	..	..	..	..
Food and beverage serving industry	96 549	269 100	227 300	188 800	187 500	257 800
Passenger transport	44 831	54 300	46 200	27 400	32 000	41 200
Air passenger transport	5 718	45 000	40 400	24 100	28 000	33 900
Railways passenger transport	85	1 900	..	..	..	..
Road passenger transport	39 028	7 400	5 800	3 300	4 000	7 300
Water passenger transport	..	..	..	..	..	..
Passenger transport supporting services	..	..	..	..	..	..
Transport equipment rental	..	..	..	..	..	..
Travel agencies and other reservation services industry	8 647	35 300	29 100	21 000	31 300	35 300
Cultural industry	19 950	10 700	9 300	6 400	8 500	13 200
Sports and recreation industry	17 115	32 600	29 200	19 000	24 100	38 200
Retail trade of country-specific tourism characteristic goods	156 760	119 900	93 800	72 200	74 700	107 200
Other country-specific tourism industries	..	71 000	57 100	3 100	13 100	32 700
Other industries	..	22 700	16 800	10 200	9 700	16 200

.. Not available

1. Data refer to number of enterprises.

Source: OECD Tourism Statistics (Database).

Statlink

Australia: Internal tourism consumption

Million AUD

	2022
	Domestic tourism expenditure	Inbound tourism expenditure	Internal tourism consumption
Total	..	..	..
Consumption products	138 423	26 105	164 528
Tourism characteristic products	85 014	12 276	97 290
Accommodation services for visitors	19 313	3 775	23 090
Food and beverage serving services	24 860	2 513	27 373
Passenger transport services	20 850	3 536	24 387
Air passenger transport services	..	..	..
Railways passenger transport services	..	..	..
Road passenger transport services	..	..	..
Water passenger transport services	..	..	..
Passenger transport supporting services	..	..	..
Transport equipment rental services	2 001	557	2 558
Travel agencies and other reservation services industry	8 600	1 130	9 730
Cultural services	..	..	..
Sports and recreation services	9 390	763	10 153
Country-specific tourism characteristic goods	..	..	..
Country-specific tourism characteristic services	..	..	..
Other consumption products	53 408	13 830	67 238
Tourism connected products	52 158	12 889	65 047
Non-tourism related consumption products	1 250	941	2 191
Non-consumption products	..	..	..

.. Not available

Source: OECD Tourism Statistics (Database).

Statlink