Australia’s tourism industry is seeing a mixed recovery, according to the latest International Visitor Survey (IVS) data.
While holiday visitation remains steady, international arrivals overall are still below pre-pandemic levels, signalling ongoing challenges for the sector.
Holidaymakers are leading the recovery, with visitation at 79 per cent of pre-pandemic levels. Visitor spending has slightly exceeded 2019 figures, up by 4 per cent, but this modest growth fails to account for inflation or the lost opportunities for industry expansion over the past five years.
Peter Shelley, Managing Director of the Australian Tourism Export Council (ATEC), highlighted the importance of the tourism export industry to the economy, particularly in regional areas.
“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,” Mr Shelley said.
Challenges for regional tourism
Regional tourism operators face specific barriers, including:
- Workforce shortages, particularly in remote areas.
- Limited aviation connectivity to iconic destinations such as Uluru and Kangaroo Island.
- Rising operational costs that are squeezing profitability.
Mr Shelley noted that regional tourism contributes significantly to local economies, supporting at least 20 per cent of jobs in many regions. Addressing these challenges is vital to sustaining communities reliant on the sector.
Impact of changing travel behaviours
Shifts in global travel behaviour, economic uncertainties, and the high cost of travel to Australia are delaying the return of key markets like China. These factors are contributing to the uneven recovery, which has created a “patchwork” of outcomes across the industry.
“Australia’s tourism industry has proven its resilience, but the road to full recovery is long,” Mr Shelley said.
A call for targeted investment
ATEC has worked with over 300 industry members through surveys, roundtables, and forums to identify recovery barriers. Mr Shelley stressed the importance of targeted investment in the Federal Budget to support sustainable growth as outlined in the Government’s THRIVE 2030 strategy.
“By addressing these challenges collaboratively, we can position Australia to achieve the sustainable export growth the Government has projected,” Mr Shelley said.
