SYDNEY, 18 November 2025: Australia’s travel sector continues to gain momentum, with the latest ATIA Travel Trends Report showing solid growth in both inbound and outbound travel, underpinned by strong performance across key Asian markets and a noteworthy rebound in major European markets.
For the year ending September 2025, inbound visitor arrivals increased from 8.1 million to 8.6 million. Strong monthly growth of 6.7% was recorded across most of the year, with January and August exceeding 12%. While travel from China and the UK posted standout annual increases of 15.4% and 12.4% respectively, the US recorded modest year-end growth.
Month-on-month, September arrivals rose 10.4%, led by China, Singapore, New Zealand, and the UK, although South Korea experienced a contraction, and the US showed only slight growth.
Outbound trends
Outbound travel also continued its upward trajectory, rising from 11.3 million to 12.4 million trips over the year, with positive results in every month. February and May stood out with growth rates of 19% and 20%, respectively. Travel to Japan recorded the most substantial annual growth of all outbound markets, climbing 24.9%, while travel to the US remained flat and declined slightly overall. The September month-on-month results showed a mixed picture, with travel to Japan, China, and New Zealand performing strongly, contrasted by sharp declines to the US, Singapore, and Thailand.
Across all destinations, around 60% of outbound travel across the year was for holidays. Visiting friends and family accounted for roughly one-quarter to one-third of all trips, while business travel remained comparatively low.
The report highlights notable trends in US travel flows. US visitors to Australia rose 4.5% year-on-year, while Australian travel to the US declined by 0.3% over the same period. September results showed US inbound numbers increasing slightly, contrasted by a significant 12.7% drop in Australians travelling stateside. High airfares and cost pressures are likely influencing destination choice, with Japan, Vietnam and China drawing more substantial interest.
Airline activity
International aviation activity also strengthened. For August, total international passenger numbers increased by approximately 9.5% year-on-year, driven by growth from Jetstar and Qantas. The two carriers remained the most significant contributors to passenger volumes, although their combined market share softened slightly in the year-end comparison. Singapore Airlines, Air New Zealand and Emirates continued to hold steady as key competitors.
Domestic aviation capacity also increased, with major city pairings adding around 3 to 6% more seats. Routes including Adelaide to Melbourne, Gold Coast to Sydney and Brisbane to Melbourne saw notable gains.
ATIA insights
“Australia’s inbound recovery has strengthened again this month with strong growth from both established and emerging markets,” ATIA CEO Dean Long explained.
The rebound from China and the UK highlights the enduring appeal of Australia and the importance of maintaining a competitive, well-connected aviation system.”
“Outbound travel continues to reflect the preferences of Australian travellers who are increasingly seeking value, cultural experiences and proximity. The strong growth in travel to Japan, China and other parts of Asia shows how quickly consumer sentiment responds to affordability and improved airline capacity.
“The US continues to be a mixed bag. While inbound arrivals from the US remain stable and are growing modestly, Australians are clearly feeling the cost pressures of long-haul travel. This highlights the need for increased competition and more competitive pricing across key routes.
“As Australians continue travelling in record numbers, the value of professional travel advice has never been clearer. If you’re booking travel, make sure you do so through an ATIA Accredited travel business as they provide the expertise and support you can rely on,” Long concluded.
Insights are based on domestic aviation data for August 2025, international aviation data for August 2025, and overseas arrivals and departures data for September 2025.
About ATIA
The Australian Travel Industry Association (ATIA) is the peak body representing Australia’s AUD69 billion travel industry. ATIA represents the majority of Australian travel agents, corporate agents, tour operators, wholesalers and ITOs. Visit: Australian Travel Industry Association.
