Australians are increasingly opting for Southeast Asia over Europe in 2025, with travel to destinations like Thailand and Vietnam expected to surge by 42%.
A new report from TravelInsurance.com.au has revealed a noticeable shift in Australian travel trends, with nearly one in three international trips in 2025 expected to be to Southeast Asia. The data shows a significant decline in interest in European destinations, as Australians prioritize proximity and value over long-haul trips.
Destinations like Thailand, Vietnam, Indonesia, and Malaysia are set to see a remarkable 42% increase in Australian visitors this year, with Southeast Asia anticipated to draw up to four million Australian tourists in total. The surge in travel to this region comes as Australian travelers seek affordable options that offer both convenience and value.
Shaun McGowan, CEO of TravelInsurance.com.au, commented on the shift, stating, “Aussie travelers are looking for better value for their money, avoiding expensive long-haul flights to Europe or the US. They prefer to minimize time off work and avoid the jet lag and high costs that come with far-flung destinations where their dollars don’t stretch as far.”
The ongoing trend of revenge travel, where Australians make up for lost travel opportunities during the pandemic, has contributed to this new approach. However, McGowan noted that today’s travelers are becoming more budget-conscious and are opting for destinations closer to home to reduce both flight expenses and travel time.
While Southeast Asia is seeing an impressive rise in popularity, East Asia remains a dominant region for Australian travelers. Countries like China, Hong Kong, and Japan are projected to experience the highest growth in Australian arrivals in 2025.
In contrast, European travel is expected to show slower growth. While Australians traveling to France may see an uptick of up to 14%, and the UK may witness a 12% increase, the overall growth in European arrivals remains modest compared to Southeast Asia.
In total, Australians are expected to embark on 12.6 million overseas trips in 2025. However, if pre-pandemic travel trends had continued, that number would have likely surpassed 14 million, illustrating the ongoing impact of shifting preferences and travel costs on the Australian tourism landscape.
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