Australia’s travel industry is in recovery mode, with visitors and spend up. But global events are causing disquiet.
Heading into 2026, travel was on solid footing. Key markets were reopening, international arrivals were rebounding and domestic trips were trending up.
Then came the conflict in the Middle East, which has disrupted travel routes and sent fuel prices soaring.
What this means for Australia’s tourism industry is still unclear, but Grant Ferres, head of Tourism Research Australia, points out that the fundamentals remain strong.
“While risks remain, the combination of stronger demand and higher visitor spend suggests the focus is now shifting from recovery to sustaining growth and competitiveness as a destination. Tourism Research Australia’s latest tourism forecasts are projecting consistent growth in international arrivals and spend out to 2030.”
“There has been an eight per cent rise in traffic (YOY) [from China] with more than one million visitors, spending AU$12.3 billion,”
Grant Jones, editor of Travel Weekly
There are already clear signals as to where that growth is coming from. “There has been an eight per cent rise in traffic (YOY) [from China] with more than one million visitors, spending AU$12.3 billion1,” points out Grant Jones, editor of Travel Weekly.
The return of Chinese tourists should be central to travel operators’ strategy, says Jones, who also points to a structural shift towards higher-value travel, with visitors prioritising experiences and longer stays.
Numbers to know
$20bn
The amount Australia's four major airports are spending on infrastructure upgrades2
Airports in Brisbane, Sydney, Melbourne and Perth are collectively investing AU$20bn on upgrades such as new terminals and runways to accommodate growing passenger numbers. It marks a significant 43% increase in investment from FY 2024/2025 and the Australian Competition and Consumer Commission (ACCC) has warned it could drive up airfares as airports seek to recover costs.
7.3%
The projected annual growth rate of Chinese visitors up to 2030 3
Tourism Research Australia forecasts the Chinese market will record the fastest growth of any inbound segment, reinforcing its position as a top-tier driver of future spend. While arrivals are not yet back to 2019 levels, momentum is accelerating – with visitor numbers surpassing one million in the year ending September 2025 and spend reaching AU$12.3 billion.
50-60% 4
The number of Gen Z and Millennials who plan holidays with less lead time than a year ago.
Research by Mintel has found that younger travellers in the US and UK are increasingly booking trips at shorter notice, often securing transport and accommodation within weeks rather than months.
Trends:
The next frontier of flight
The future of short-haul travel is being reimagined, with Uber announcing plans to integrate all-electric air taxis into its app through a partnership with Joby Aviation. Set to launch first in markets like Dubai, NYC, LA, UK and Japan the service will allow users to book end-to-end journeys – including vertical take-off flights – in a single tap.
Returning to roots (literally)
Ancestry travel is gaining momentum as travellers look to reconnect with their heritage – turning family history into deeply personal itineraries. From genealogy-led tours to DNA-informed journeys, trips are increasingly starting with a family tree rather than a destination list. It’s part of a broader shift toward hyper-personalised travel as self-expression, with growing demand for tailored, story-led and emotionally resonant experiences like Astrotourism, #Booktok and grocery store travel.
The anti-AI effect
As AI becomes more embedded in travel – from planning and booking to hyper-personalised itineraries – a counter-trend is emerging. Travellers are increasingly seeking experiences that feel private, analogue and intentionally disconnected. From off-grid mall-group expeditions to “quiet-cations” and luxe low-tech escapes, the appeal lies in what’s missing as much as what’s offered. In this landscape, the ability to switch off and be present is becoming the ultimate status symbol.
Sources: 1 Tourism Australia Research, 2 Travel Weekly, 3 Tourism Australia Research, 4 Mintel,
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