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ATIA Travel Trends Report: Americans flock to Australia while Aussies favour Asia

The Australian Travel Industry Association's (ATIA) latest Travel Trends Report reveals a fascinating shift in travel patterns, with a significant surge in visitors from the United States to Australia, even as outbound Australian travel to the USA sees a decline.
 
The data highlights a remarkable 19.2% increase in US inbound travellers to Australia in July 2025 compared to the same period last year. Meanwhile, outbound trips by Australians to the USA dropped by 2.7% in July 2025.
 
The report, which analyses data for June and July 2025, underscores the continued strength of Australia's inbound and outbound markets. For the year ending July 2025, inbound international visitors to Australia rose 6.1% to 8.49 million, a notable increase from 8 million the previous year. Outbound trips by Australians also boomed, reaching 12.32 million travellers for the year, up from 11.14 million.
 
Inbound Tourism and Domestic Aviation
Inbound travel to Australia saw a 6.1% increase in the 2024/25 financial year, with most months showing positive growth. Strong increases were recorded from key markets including China, the UK, Japan, India, and Singapore. In July 2025, inbound travel surged by a huge 12.8% to 743,200 travellers, with growth led by the UK, Singapore, Hong Kong, and the USA.
 
On the domestic front, seat capacity on major routes saw some shifts in June 2025 compared to June 2024. The Perth-Sydney route experienced a significant increase of 11.7% in seat capacity, while popular routes like Gold Coast-Melbourne (-7.7%) and Adelaide-Sydney (-6.9%) saw declined.
 
Outbound Travel and International Aviation
Australian outbound travel for the year ending July 2025 increased by 10.6% to 12.32 million travellers. The surge was led by destinations across Asia, with Japan (up 26.7% at 913,200 total travellers year on year), China (up 25.3% with 660,520 travellers), Vietnam (up 24.7% with 498,740 travellers), and Thailand (18.1% with 645,770 travellers) seeing the strongest increases. Indonesia remains the number 1 destination at 1,748,140 travellers, a 11.8% increase year on year.
 
In contrast, while destinations like the USA, the UK, and Fiji experienced modest growth over the year, outbound travel to the USA declined by 2.5% in July 2025 compared to the previous year with 744,410 Australians visiting.
 
Total international passengers carried rose from 3.28 million to 3.44 million year-on-year to June 2025. In terms of market share for the year ending June, Jetstar and Cathay Pacific recorded the strongest gains year on year, Qantas held steady, while other major carriers, including Air New Zealand, Emirates, Qatar, Virgin, and Malaysia Airlines, experienced slight declines.

QUOTE ATTRIBUTABLE TO ATIA CEO DEAN LONG:
"Our latest report highlights a compelling two-way story. While the USA is clearly becoming a hot destination for inbound visitors to Australia, we're seeing a contrasting trend with Australians favouring closer-to-home destinations in Asia.”
 
"The remarkable 19.2% jump in US arrivals in July is a testament to the strong appeal of Australia as a holiday destination and underscores the importance of a resilient travel sector to capture this demand."
 
"The data is clear: Australians are driven by international experiences, with holidays accounting for over 50% of all trips. The continued popularity of Asia, led by destinations like Japan, China, and Vietnam, shows a distinct preference for diverse, culturally rich travel that offers great value. This trend reinforces the need for our industry to remain responsive and agile to meet these shifting consumer preferences."
 
"In an evolving travel landscape, it has never been more important to have the support and expertise of a professional. We strongly encourage all Australians to book their holidays and travel arrangements through an ATIA Accredited travel business. Our members provide expert service, transparency, and peace of mind, ensuring travellers are protected and supported every step of the way."