Australia’s Visitor Economy Rebounds: Insights from 2024-2025 ABS Data
Published on
March 24, 2025
Australia’s Visitor Economy Rebounds: Insights from 2024-2025 ABS Data
We’ve unpacked the latest trends in Australia’s overseas arrivals and departures, drawing from ABS data and industry reports. With 2024 marking a significant recovery, here’s what’s driving the surge and what it means for our economy.
The Numbers Tell a Story
- Australia welcomed 10.7m international visitors in 2024. This is up 16% from 9.2m visitors in 2023 and rebounding to 92% of the pre-COVID peak (11.7m visitors in 2019).
- Short-term visitor arrivals hit 8.3m in 2024. 15% higher than 2023 and 124% above 2022. Though still shy of the 2019 count of 9.5m visitors
- Top source markets for short-term visitors in 2024: New Zealand (1.4m), China (0.9m), and the USA (0.7m). Though none have hit pre-COVID levels. Standouts include Vietnam (+40%), South Korea (+34%), Ireland (+29%), and India (+11%) contributing 1.25m visitors. This is a 22% jump from 2019.
Shifting Travel Patterns
- Short-term visitors are staying longer: 6m visitors stayed under 1 month (83% of pre-COVID). While 0.3m visitors stayed 6-12 months (110% of pre-COVID).
- Purpose of visit: 3.6m visitors (44%) here for holidays. 2.8m (34%) visitors here to visit friends and relatives. 1m (13%) of visitors here for work/businesses and conferences. And 0.5m (.6%) visitors for education.
- State breakdown: NSW leads with 3.1m short-term visitors, followed by Victoria (2.1m) and Queensland (1.7m). These states received 84% of all short-term arrivals. Western Australia saw the biggest growth (+21%, from 0.68m to 0.83m).
What’s Driving the Boom?
- Eco-Tourism Surge: Over 530 organisations have pledged net-zero emissions by 2040. Tapping into visitors’ growing environmental concerns (Torrens University, 2024).
- Government Backing: The $48m Supporting Australian Tourism and Travel package, and trade missions to Southeast Asia (220+ businesses) are boosting global appeal. (Trade Minister, 2023).
- Economic Edge: A weaker AUD (US$0.64 on 19 March 2025 vs. US$0.78 in 2021 and US$1.06 in 2012) makes Australia a bargain for international travellers.
- Key Markets: China (18% of arrivals in Feb 2024) and New Zealand (16% in Jan 2024) lead, with emerging markets like South Korea and India exceeding pre-COVID levels.
Economic Impacts for Australia
- The visitor economy remains a powerhouse: In FY24, international visitors spent $38.3bn—$0.6bn above the pre-COVID FY19 total of $37.7bn (TRA, 2024).
- Tourism-generated GDP hit $78.1bn in FY24, up 9.1% from FY23 and 29% from FY19 ($60.5bn). This now accounts for 2.9% of total GDP (up from 2.8% but below the 3.1% pre-COVID peak).
- Employment soared to 691,500 jobs (345,900 part-time, 345,600 full-time), a 6% rise from the prior year and 10% above pre-COVID levels (632,000 jobs) (ABS, 2024).
- Visitor numbers are up: January 2025 data shows 0.71m visitors (up 17.6% from 0.6m in Jan 2024), with 2025 projected to reach 9.5m arrivals.
The Road Ahead
This recovery underscores tourism’s role as Australia’s fourth-largest export sector pre-COVID. It's now gaining momentum. Longer stays and diverse visitor purposes signal robust spending. While Western Australia’s growth hints at untapped potential. That said, an uneven state arrival distribution (84% in NSW, Victoria, Queensland) and the gap to pre-COVID peaks suggest room for strategic investment.
At Atlas Economics, we’re analysing how these trends could shape trade, labour markets, and regional development in 2025.
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