Saturday, June 28, 2025
Tourism Research Australia (TRA) has unveiled its latest International Visitor Survey (IVS) results for the first quarter of 2025, ending 31 March 2025, as well as a comparison with the same period in 2024. The data highlights a significant rise in both international visitors and tourism expenditure, showcasing the recovery and continued growth of Australia’s tourism sector.
The results indicate a record-setting total trip spending of AUD 52.6 billion for Q1 2025, a 12% increase from the same period in 2024. This surge underscores the resurgence of international tourism to Australia and reflects strong consumer confidence, despite global challenges in the tourism industry.
Growth in International Visitor Numbers
Tourism Australia reports that the country welcomed 7.7 million international visitors in the 12 months ending 31 March 2025. This marks a 7% increase over the same period in 2024, further solidifying Australia’s position as a preferred destination for travelers worldwide.
China continues to be the leading contributor to tourism spending in Australia, accounting for 26% of the total spending, followed by the UK at 6.9% and the US at 6.5%. These markets remain vital to Australia’s tourism sector, with sustained growth driving the overall increase in revenue.
Spending by Purpose of Travel
The breakdown of tourism spending by purpose of visit reveals that holiday travel remains the dominant reason for visiting Australia, with 3.3 million trips recorded in the year ending March 2025, reflecting an 11% increase from March 2024 levels. Visitors who came for holidays spent a total of AUD 12.0 billion, which represents a 24% jump from the previous year.
Visiting friends and relatives also saw significant growth, with 2.6 million trips, up by 3% compared to the same period in 2024. Spending by this group totaled AUD 5.3 billion, marking a 12% increase from the previous year.
Business and Education Travel Trends
Business travel in Australia saw a moderate increase, with 772,000 trips taken in the year ending March 2025, reflecting a 4% rise compared to the previous year. However, despite the growth in trips, the total spending in this category was AUD 2 billion, a decline of 8% from March 2024 levels. This indicates a shift in the type of business-related travel and spending patterns.
The education sector has continued its strong performance, with 509,000 education-related trips recorded, an increase of 10% from March 2024. International students contributed a substantial AUD 12.5 billion in spending, representing an 11% rise compared to the previous year. Education remains a crucial pillar of Australia’s tourism industry, with students and their families driving both economic growth and cultural exchange.
Key Takeaways from the Report
- Tourism Spending Surge: Australia’s total trip spending for Q1 2025 reached an all-time high, reinforcing the country’s strong appeal as a global travel destination.
- Visitor Growth: The increase in international visitors, especially from China, the UK, and the US, signals robust demand for travel to Australia across multiple segments.
- Holiday Travel Dominance: The holiday travel sector continues to lead the way in terms of both visitor numbers and spending, with significant year-on-year growth.
- Business Travel Challenges: While business travel showed modest growth, the spending in this category has seen a slight decline, reflecting changes in business traveler behavior and expenditure patterns.
- Education Travel Continues to Thrive: The education sector has emerged as a key driver of tourism revenue, with a noticeable increase in international student arrivals and spending.
Australia’s tourism sector has shown remarkable resilience and growth in Q1 2025, with substantial increases in both visitor arrivals and tourism expenditure. The continued rise in holiday travel, along with strong performances in education and visiting friends and relatives, highlights Australia’s diversified tourism offering. As the global tourism landscape continues to recover, these figures provide a promising outlook for the country’s tourism industry in the years to come.
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