Domestic tourist visitor nights

IBISWorld expects the total number of domestic visitor nights to increase by 3.6% during 2024-25 to 417.6 million visitor nights. As inflationary pressures ease and disposable incomes stabilise, more households will allocate their budget towards leisure, family visits and short breaks within Australia. This is particularly evident in regional tourism, where local communities benefit from increased visitation as Australians seek authentic experiences and destinations closer to home. Moreover, strategic government and industry initiatives continue to stimulate domestic tourism demand. The government's ongoing investment in regional infrastructure, like upgraded transport links, new accommodation options and revitalised attractions, has made travel more accessible and appealing. Hosting major sporting and cultural events across various states also draws visitors for extended stays, contributing directly to the rise in visitor nights.

Another significant driver is the shift in work and lifestyle patterns, accelerated by the widespread adoption of remote and hybrid work arrangements. Australians are increasingly combining business and leisure travel, extending the average length of trips as many add leisure time to work-related journeys. This trend is especially strong in cities like Brisbane and Cairns, where corporate travellers often extend stays to enjoy local attractions and events. Flexible schedules allow travellers to spend more time in destinations, usually combining work commitments with family holidays or personal getaways.

According to TRA, domestic visitor nights show differing trends based on travel purpose. Holiday travel, the largest segment, making up over 40% of domestic nights in 2024, has been particularly affected because of its discretionary nature. Growth in the number of visitor nights for holiday or leisure purposes, or to visit family and friends, is susceptible to fluctuations in domestic economic conditions like consumer sentiment. The remainder of domestic visitor nights comprises consumers travelling for business or other reasons, like educational purposes. Visitor nights in regional areas account for over two-thirds of domestic visitor nights. Most Australians live in metropolitan areas or capital cities, so visitors travelling for leisure or holiday purposes are more likely to travel to regional areas of the country.

The number of domestic tourist visitor nights has surged over the past five years, rebounding after pandemic-related restrictions curtailed domestic travel in 2019-20. Interest in domestic trips has risen strongly over the past decade, with travel volumes growing before the pandemic. Overall, IBISWorld forecasts the total number of domestic tourist visitor nights to rise at a compound annual rate of 8.7% over the five years through 2024-25.