Nearly one in three international trips taken by Aussies in 2025 will be to Southeast Asia, while Europe is falling out of favour with Australian travellers, according to new data from TravelInsurance.com.au.
The data shows that travel to Southeast Asian destinations like Thailand, Vietnam,
Indonesia, and Malaysia is expected to surge by 42 per cent this year — the region is set to attract 4 million Australian travellers.
However, when looking at individual destinations, Japan (34 per cent), Hong Kong (28 per cent), and China (27 per cent) will see the highest growth in Aussie travellers.
In contrast, Europe’s recovery in Aussie traveller numbers is expected to remain sluggish in 2025. The number of Australians visiting France is projected to rebound from a 6 per cent decline in 2024 to 14 per cent growth this year, while travel to the UK is forecast to grow from 3 per cent in 2024 to 12 per cent in 2025.
TravelInsurance.com.au CEO, Shaun McGowan, says Southeast Asia is becoming
Australia’s second backyard.
“Aussie travellers are prioritising value over expensive long-haul trips. They don’t want to take extended time off work to visit Europe or the US, only to battle jet lag for weeks and blow their budget in destinations where their dollars don’t stretch as far,” he says.
“Australians are still in ‘revenge travel’ mode, making up for lost time post-pandemic, but they’re being smarter about it. With the rising cost of living, they’re choosing destinations closer to home to save on both flight costs and travel time.”
The projections show Aussies will take 12.6 million overseas trips in 2025, but if
pre-COVID trends had continued, that number would have surpassed 14 million.
With Southeast Asia offering similar experiences to some of Europe’s most iconic hotspots — at a fraction of the price and travel time — TravelInsurance.com.au has identified the top five Southeast Asian alternatives to popular European destinations.
Top 5 Southeast Asian alternatives to Europe
1. Bali, Indonesia → Ibiza, Spain
Did someone say beach party? Bali and Ibiza are known for their sandy coastlines, beach clubs and nightlife. In Bali, Kuta, Seminyak, and Canggu offer the same energy as Ibiza’s San Antonio and Playa d’en Bossa, just without the hefty price tag.
2. Tokyo, Japan → London, UK
Both cities are a mix of old and new. Tokyo’s ancient temples like Sensō-ji stand alongside futuristic skyscrapers, just like London’s historic landmarks like Westminster Abbey and St. Paul’s Cathedral. Tokyo’s bullet trains and metro system rival the London Underground, making both cities incredibly easy to explore. And when it comes to food, both capitals are a dream for foodies — whether it’s Tokyo’s sushi and ramen joints or London’s pub classics, curry houses, and afternoon tea spots.
3. Hanoi, Vietnam → Prague, Czech Republic
For travellers chasing charming old-town streets and deep cultural heritage, Hanoi’s bustling Old Quarter, colonial buildings, and rich history offer the same appeal as Prague’s cobbled streets and Gothic architecture, at a fraction of the cost. And when it comes to food, pho and street-side coffee in Hanoi are just as iconic as Prague’s goulash and local beers.
4. Phuket, Thailand → Greek Islands (Mykonos/Santorini)
Phuket and the Greek Islands have a lot in common. Think white sand beaches, turquoise waters, and luxury resorts. Patong Beach and Bangla Road in Phuket bring the same party vibe as Mykonos’ beach clubs and Santorini’s cliffside bars, both hotspots for honeymooners and partygoers. But in Thailand, you can sip a cocktail on the beach for a fraction of the price.
5. Hong Kong → Monaco
Both cities are glamorous, fast-paced, and known for luxury shopping, skyscraper views, and high-end casinos. Hong Kong’s Victoria Harbour and The Peak offer views as stunning as Monaco’s Monte Carlo skyline and Port Hercules, both playgrounds for the rich and famous.
