Where travellers are going to avoid sting of weak Aussie dollar

A mother and a teenaged girl are dressed in brightly colored sarongs, blouses, and sashes and are balancing tall fruit baskets on their heads. Two sons are dressed in sarongs and white shirts. The family is walking in front of an old stone temple building which has a smoky atmosphere.

As an English expat living in Sydney, I am no stranger to the cost of eating, drinking, and breathing in London. It is not a place you go to for a cheap holiday.

Yet on a recent trip back home things appeared to be extra price as the weak Australian dollar struggled to hold weight against the British pound.

And it’s not just England, with the Aussie dollar plummeting to a five-year low, Aussies are starting to feel the pinch when travelling to popular destinations across Europe and the US. In New York, a cup of coffee will cost you an eye-watering average of $9.70!

So how is the dollar impacting outbound travel and where are budget-savvy Aussies setting off to?

Speaking to Travel Weekly, founder of Travel Agent Finder Anna Shannon noted that she had observed a recent trend of Australians “staying closer to home” when booking their holidays.

Anna Shannon

Interestingly, ‘Asia’ was the most searched-for keyword in the past 30 days on the Travel Agent Finder website, something she said hasn’t happened before now.

Shannon’s observation is backed by industry figures with Indonesia, New Zealand and Japan named as the top three destinations for Australia in 2024.

Where did we go in 2024? Aussie travellers’ favourite hotspots revealed

Budget destinations were top of the list for growth. Thailand experienced robust growth with 567,330 arrivals, up 17 per cent year-on-year and 3 per cent above pre-pandemic levels and Vietnam recorded the highest growth, with 423,620 visitors, up 35 per cent year-on-year and 33 per cent above pre-pandemic figures.

Halong Bay Vietnam

Visitors to Japan are also significantly on the up thanks to Japan’s own weak dollar. It is estimated that 807,800 Australians visited Japan between January and November last year, up by 200,00 from 2019 based on estimates from the Japan National Tourism Organisation (JNTO).

For budget-conscious Australians, travelling to Asia is one way they can make their dollar go further. Skyscanner recently revealed the top destinations where the Aussie dollar goes further and 4/5 of them were in Asia. They were:

Indonesia: A classic go-to for Aussies as the Indonesian Rupiah typically offers Australians favourable exchange rates, and day-to-day expenses (accommodation, food, experiences) remain quite low—especially outside of main tourist hubs like Bali’s Seminyak or Canggu. Bali’s popularity for Aussie travellers is well-known, but you can differentiate by focusing on lesser-visited islands (Lombok, the Gilis, Flores) that offer even stronger cost benefits. If you’re looking for something other than the classic Bali experience, than just Bali, explore the secret Indonesian island with a town that looks like Santorini – Labuan Bajo.

Vietnam: The Vietnamese Dong has historically given the Aussie dollar a strong foothold; combined with very affordable food and lodging, it’s a top Southeast Asian destination for budget-conscious travellers. Value extends beyond major hubs like Hanoi and Ho Chi Minh City. Coastal cities (Da Nang, Nha Trang) and smaller towns (Hoi An) are great pitches for travellers seeking budget-friendly yet culturally rich experiences.

Flights from Sydney to Ho Chi Minh City from $232.

Thailand: Despite being one of Asia’s top tourist destinations, Thailand’s cost of living outside of the prime tourist hotspots remains highly affordable. Even popular areas often have deals if you plan ahead. Beyond Bangkok and Phuket, point travellers toward secondary destinations (Chiang Rai, Isan region) or lesser-known islands (Koh Lanta, Koh Lipe) for more local experiences at lower prices.

South Africa: The AUD has remained strong against the South African Rand, with 1 AUD buying approximately 12.47 rand, a 1.6 per cent increase over the past year. South Africa’s diverse landscapes and wildlife make it an appealing and cost-effective destination for Australians.

Elephants in South Africa.

South Africa was the one non-Asia destination on the list

**Flights from Sydney to Johannesburg from $881.

India: The Australian dollar historically goes far against the Indian Rupee. While prices vary in large metros (Mumbai, Delhi), the cost of essentials is typically low throughout the country. India offers a diversity angle—beaches in Goa, hiking in the Himalayas, or the cultural hubs (Rajasthan’s forts and palaces)—all at a fraction of the cost you’d face in other regions?

**Flights from Sydney to New Delhi from $372.

Despite the cost barrier, Shannon says that Aussies are not solely relying on currency to help them pick their next travel destination.

“We are still seeing people do what they can to make their dream holiday happen, whether that is slashing expenses or even taking out a loan. That trend is still definitely there”.

 

 

 

 

 

 

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