New research highlights role of domestic travel in Australia’s tourism recovery

Starry sky at the Pinnacles, Milkyway rise above a standing stone by the beach. Image contain soft focus and blur due to long expose. Image also contain noise and grains due to high ISO

The role of the domestic market for the recovery of Australia’s tourism industry has been highlighted in a new report by Australia’s peak tourism research body.

Created as a resource to assist Australian tourism providers to plot courses out of the choppy waters of the COVID-19 pandemic, the ‘Moving forward – The role of domestic travel in Australia’s tourism recovery’ report by Tourism Research Australia (TRA) reveals key insights for the future recovery of our industry.

Here are three of the most important insights Travel Weekly found in the report…

Australians were outspending international visitors 2:1

The role of domestic overnight travel and day trips in Australia’s $152 billion visitor economy far outweighs that of international travel, TRA revealed, with 2019 figures showing more than nine million international visitors came to Australia, spending a total of $45 billion.

With only $31 billion of this international spend reaching the Australia economy, this was overshadowed by the $107 billion Australians spent on domestic overnight travel and day trips.

It was also significantly less than the $65 billion spent by Australians on 11.6 million outbound trips – half of which was holiday travel.

Therefore, when analysing who spends what and where in Australian tourism, two key facts stand out from the 2019 data: Australians travelling internationally spent $26 billion more overseas than overseas visitors spent in Australia; and domestic travellers already outspend international visitors in Australia by a ratio of more than 2:1.

However, TRA noted that domestic tourists have different travel and spending patterns to those travelling overseas.

Trips taken by Australians in Australia tend to be shorter, lower yield and involve fewer activities than those of our international visitors – the average domestic overnight trip lasts less than four nights and costs under $700. While typical overseas trips span 18 nights and cost $6,500.

Consumer behaviour patterns are also likely to be different as a result of COVID-19, with travellers likely to be more concerned about personal hygiene and safety.

TRA said this will hinder the resumption of all kinds of travel, and people may be more reluctant to undertake some of the activities they did before.

Resumption of business travel likely to coincide with a mass return to office-based work

The resumption of domestic business travel will likely coincide with a mass return to office-based work and airline reopenings, according to the report.

However, the pandemic has significantly altered the way people interact with each other in a business setting. In a far more challenging financial environment, organisations may reassess the amount of physical travel they consider necessary.

The prospect of much higher unemployment and reduced incomes means the recovery for domestic holiday travel may be more subdued, as well.

TRA reckons this would see domestic trips becoming shorter and less frequent with a greater focus on lower-cost options. Holiday travel will still remain highly seasonal, underpinned by strong school holiday demand.

With Australia’s ski fields and tropical destinations entering their peak season in winter, the report noted that the timing of interstate border reopenings will be critical.

However, what is yet unclear is the behaviour of those travellers who would have otherwise holidayed overseas.

In the short term, there may be some available capacity as people cannot venture overseas, but this is expected to only prop up the domestic market rather than enlarge it.

Part of this comes down to the reason for travel: with more than 11 million outbound trips annually, Australians like to travel overseas, meaning many will hold out for an overseas experience if they think the option will arise soon, according to TRA.

Therefore, people who would travel overseas for business or to visit friends and relatives will have no additional reason to travel domestically.

Changes in the visitor mix

The report noted the decline in household incomes will have significant impact not only on travel propensities, but also on travel behaviours.

Over the past five years, households with incomes over $200,000 have been the drivers of growth in both domestic overnight and outbound travel (with TRA noting an increase, on average, of 13 per cent and nine per cent per year, respectively).

Compared to those earning below $150,000, these wealthier households are three times more likely to stay in luxury accommodation, are 50 per cent more likely to travel interstate, and typically spend 80 per cent more per person per night on domestic overnight trips.

Moreover, these travellers spend 90 per cent more per night on outbound trips.

Furthermore, spend among households with incomes of under $150,000 have been declining, with trips more likely to include free activities and more regional travel.

The older age profile of domestic travellers, including those who currently take outbound trips, means there will be more retirees in Australia’s visitor mix in a domestic led recovery, TRA said.

These travellers are less time-conscious, but will have additional needs.

Moreover, recovery of the cruise industry over the short term will rely on persuading some of the two million older Australians who would otherwise be holidaying overseas to consider this type of travel.

Given the greater risk of illness among this cohort, TRA said this will require even more stringent health and safety protocols.


Featured image source: iStock/NeoPhoto

Latest News

  • Famil

TravHost launches expert hosting service to transform industry famils

TravHost offers a pioneering service bridging the gap between media professionals, travel agents and tourism organisations, addressing the demand for exceptional famil hosts. Founded by seasoned travel media professionals Fiona Harper and Carolyne Jasinski, TravHost is poised to revolutionise the way tourism organisations and travel companies approach famils. With decades of experience in tourism and […]

  • Tour Operators
  • Travel Agents

Book big and bag a spot of the TTC Tour Brand’s Top Achievers’ Famil

TTC Tour Brands’ Top Achievers Famil incentive is back, rewarding top-selling agents with the chance to embark on an unforgettable trip to a destination that remains a secret – for now. Agents who have sold any Luxury Gold, Insight Vacations, Trafalgar, Costsaver and Contiki, from 1 December 2024 to 14 March 2025, go into the […]

  • Business Travel
  • Conferences

New Zealand International Convention Centre to open in February 2026

The New Zealand International Convention Centre (NZICC) has announced it is opening its doors to New Zealand and world conferences and events in February 2026. The long-awaited NZICC is set to transform New Zealand’s conference and events industry, boosting visitation and the wider economy with its world-class facilities. Located in the heart of Auckland’s CBD, […]

  • Cruise
  • Events

AmaWaterways invites AU/NZ travel trade to An Evening with AmaWaterways events

AmaWaterways has announced the dates of its upcoming An Evening with AmaWaterways events for travel advisors, just over a year after it entered the Australian and New Zealand markets. Dedicated to travel advisors, the events will be held in six cities and will be hosted by AmaWaterways’ regional sales managers, plus feature a presentation from […]

  • Destinations
  • Tourism

Mooloolaba cruise season boosts Sunshine Coast tourism and trade

Mooloolaba is set to welcome a series of cruise ships through February and March 2025, significantly boosting local businesses and tourism to the Sunshine Coast. Their arrival is expected to create a vibrant atmosphere and provide a substantial economic uplift to the region. Viking Sky kicks off the season on Sunday 8 February, with 930 […]

  • Food & Beverage

Little Pete Brewing opens first of its kind open-air bar

Little Pete Brewing has opened a new open-air bar at 543 Step Rd, Langhorne Creek, a must-visit South Australia destination for a drink with a view. The first-of-its-kind open-air bar sits on 8ha, surrounded by vineyards and paddocks, with the Bremer River flowing nearby and framed by majestic ancient river red gums. “We always felt […]

  • Events

CENTREPIECE is set to make a splash at AIME 2025

CENTREPIECE is set to make a splash at AIME 2025 with a one-of-a-kind activation that showcases their world-class event capabilities to inspire event planners and decision-makers. CENTREPIECE is located in the heart of Melbourne & Olympic Parks, Victoria’s epicentre for live sports and entertainment and home to world-renowned venues including Rod Laver Arena, AAMI Park, […]

  • Destinations
  • Tourism

NYC Tourism + Conventions announces two exciting new events

NYC Tourism + Conventions has announced ‘NYC Off-Broadway Week 2025’ and ‘Value Family Activities’ events lined up for this year. NYC Off-Broadway Week 2025 2-for-1 ticket sales for this event have begun with this season’s program featuring 29 Off-Broadway performances, including 18 new participants. The twice-yearly program runs from 17 February through 9 March with […]

  • Events
  • Tourism

Jeju wins bid to host 2028 Asia-Pacific Microscopy Conference

The Korea Tourism Organization (KTO) has successfully secured the 14th Asia-Pacific Microscopy Conference (APMC14) for Jeju in November 2028. This was achieved in partnership with the Korean Society of Microscopy, Jeju Special Self-Governing Province, Jeju Convention Bureau, and Jeju International Convention Center. Korea was selected as the final host after strong competition at the 13th […]

  • Cruise
  • Food & Beverage

Oceania Cruises sets new standard for onboard dining: one chef for every 10 guests

Oceania Cruises, renowned for The Finest Cuisine at Sea, has set a new standard for onboard dining with an exquisite new menu evolution in The Grand Dining Room. Launching on its newest 1,200-guest ship, Allura, in July 2025, the reimagined menus introduce over 270 brand-new recipes, from curated Signature Eggs Benedict breakfast selection to a chic French […]