Australians are travelling overseas in record numbers, but the United States is losing its appeal as more holidaymakers turn to Asia instead.
According to the latest ATIA Travel Trends Report, Australians took 12.71 million overseas trips in the year to May 2026, up 4.1 per cent year-on-year. Meanwhile, inbound tourism continued its strong recovery, with a record 9.16 million international visitors arriving in Australia, a 9.5 per cent increase.
The report, based on Australian Bureau of Statistics and Department of Infrastructure data analysed by the Australian Travel Industry Association (ATIA), shows Asia-Pacific destinations are driving growth while traditional long-haul markets soften.
Asia continues to dominate
Japan is edging closer to the one million Australian visitor mark, welcoming 987,430 Australians over the past 12 months, up 9.1 per cent.
China is booming in both directions. Australian travel to China jumped 15 per cent to 738,450, while Chinese arrivals into Australia surged 18.9 per cent to 1.13 million, making it Australia’s fastest-growing inbound market.
Vietnam also posted strong gains, with Australian visitation climbing 16.2 per cent to 561,800.
Indonesia retained its title as Australia’s most popular overseas destination, attracting 1.77 million Australian visitors over the year.
US and UK lose momentum
While most major destinations recorded growth, travel to both the US and UK declined.
The United States experienced the sharpest fall of any major destination, with Australian visitor numbers dropping 8.5 per cent year-on-year.
Travel to the UK also eased, down 3.3 per cent, with ATIA suggesting the country’s new Electronic Travel Authorisation (ETA) has caught some travellers by surprise.
ATIA said accredited travel agents are helping travellers navigate changing entry requirements, airline fares and routing options.
Australia continues attracting visitors
New Zealand remained Australia’s largest inbound market with 1.44 million arrivals.
China led inbound growth, followed by Hong Kong (16.3 per cent), Japan (12.8 per cent) and the UK (13.6 per cent).
ATIA CEO Dean Long said the figures reflected continued strength across the travel industry.
“Australians are travelling more than ever, and the rest of the world is visiting us in record numbers too. That’s a great result for an industry that works hard to get people moving in both directions.”
Long said demand for Asia is expected to continue growing
“Japan, China and Vietnam are the standout performers right now, and we expect airlines to add even more flights to the region over the next year as they chase that demand,” Long said.
Despite softer demand, Long said the US and UK remain key destinations for Australian travellers.
“The US and UK are still two of the most popular places for Australians to visit, they’re just going through a tougher run right now,” he said.
“If you’re booking the US, the UK or Europe right now, talk to an ATIA-accredited agent or tour operator before you commit.
“The settings have shifted more in the last two months than in the past two years, and that’s exactly what ATIA-accredited travel agents and tour operators are there to help you get right.”
