Australia Travel & Tourism Market on Track to Reach USD 21.1 Billion by 2033

The Australia travel & tourism market continues to strengthen as global mobility recovers and domestic travel preferences evolve. According to the latest IMARC Group analysis, the market reached USD 17.2 billion in 2024 and is projected to reach USD 21.1 billion by 2033, reflecting a CAGR of 2.11% over the 2025–2033 period.

This expansion highlights how evolving traveler preferences, supportive government initiatives, improved infrastructure, and digital booking platforms are intersecting to shape a resilient tourism landscape in Australia.

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Why the Market Is Growing So Rapidly

A major driver behind the growth of the travel and tourism market in Australia is the surge in domestic travel. Post-pandemic, many Australians have preferred exploring local and regional destinations due to familiar culture, affordability and ease of travel. Coastal retreats, outback adventures, and lesser-known inland destinations have seen increased visitation, effectively broadening the market beyond traditional urban hubs.

Another significant growth factor is the focus on sustainable and eco-tourism experiences. Travelers are increasingly choosing eco-friendly options, such as wildlife sanctuaries, carbon-neutral lodges and conservation-oriented tours that offer meaningful travel while minimizing environmental impact. This shift aligns with global sustainability trends and elevates Australia’s appeal as a responsible tourism destination.

The rise of experience-driven travel is also reshaping the market. Today’s tourists — both domestic and international — place higher value on immersive cultural encounters, adventure activities, and personalized itineraries. Experiences like Aboriginal cultural walks, winery tours, and surfing lessons are attracting diverse demographics, including solo travelers, families, and luxury leisure seekers.

Technological innovation is another engine of growth. Digital transformations — particularly online booking platforms, mobile travel apps, and virtual trip planning tools — are easing the travel planning process and expanding access to more personalized travel products and services. These technologies are enabling tourism operators to reach broader customer segments efficiently.

Finally, expanding disposable incomes and a growing middle class are boosting travel demand. Higher earnings allow Australians to allocate more of their budget to leisure travel, including premium accommodations, gourmet dining and unique travel experiences. This elevated spending capacity is driving frequent travel and supporting market expansion across multiple segments.

What the Opportunities Are

• Regional Tourism Development: Promoting lesser-known destinations across states offers a way to spread visitor traffic more evenly, reduce crowding in major cities, and stimulate local economies in areas rich with natural or cultural attractions.

• Indigenous and Cultural Tourism: Expanding offerings that highlight Aboriginal and Torres Strait Islander heritage — including guided tours, storytelling, and traditional arts — can attract culturally motivated travelers seeking authentic experiences.

• Wellness and Retreat Tourism: Rising global focus on health and wellbeing presents opportunities to develop travel packages around wellness resorts, retreat centers, and nature-immersive experiences that cater to physical and emotional rejuvenation.

• Eco-Tours and Sustainable Packages: As environmental consciousness grows, operators who integrate eco-friendly practices and responsible tourism into their offerings can capture ethically minded travelers and differentiate their services.

• Digital Travel Solutions: There remains significant scope for travel tech platforms — from booking tools to AI-driven travel planning apps — to streamline experiences and deliver personalized recommendations for diverse traveler profiles.

• Experience-Focused Events & Activities: Innovating themed travel experiences — such as culinary tours, adventure expeditions, or arts and sports events — can draw niche segments and extend stays, boosting local spending.

• Cross-Border & Outbound Travel Services: With international mobility rebounding, travel companies can expand offerings that blend domestic and outbound travel planning — from multi-destination tours to seamless flight and accommodation packages.

Recent News & Developments in Australia Travel & Tourism Market

• January 2025: Australia’s tourism agencies launched a new nationwide marketing campaign promoting “Travel Local, Travel Smart” to encourage year-round domestic tourism. With partnerships across regional councils and digital travel platforms, the initiative aims to uplift mid-season travel demand and distribute tourism spending more evenly across states.

• March 2025: AirAsia and Tourism Western Australia entered a strategic partnership to boost international flights between Malaysia and Perth, enhancing connectivity and positioning Perth as a major gateway for Southeast Asian travelers. The collaboration includes joint promotions and package offers tailored for leisure visitors.

• July 2025: Data from major travel operators reported a 25% rise in outbound travel bookings from Australia compared to the first half of 2024, driven by improved airfare pricing and expanded international routes — highlighting a broader travel resurgence and appetite for international leisure trips.

Why Should You Know About Australia Travel & Tourism Market?

The Australia travel and tourism market is much more than a leisure industry — it is a key economic driver that supports jobs, regional development, and cultural exchange. For investors and travel service businesses, this market offers opportunities across segments, from regional retreats and eco-tourism to tech-enabled personalized travel services. For policymakers, supporting sustainable tourism and improving infrastructure access can yield broad economic and social benefits.

As domestic travel continues to flourish and international visitation rebounds post-pandemic, understanding the forces shaping this market — from evolving consumer preferences to digital innovation and sustainability trends — is essential for capturing future growth and maximizing the tourism economy’s impact well into the next decade.