Australia’s tourism sector is accelerating sharply in 2025, with international arrivals and visitor spending well above last year’s levels. The country welcomed 7.8 million international visitors in the year ending June 2025, a 10% rise, according to Tourism Research Australia.
Holidaymakers spent AUD 13.0 billion, up 27%, while travel for visiting friends and relatives reached AUD 5.9 billion, a 23% increase. Leisure travel is compensating for a weaker business segment, with only 745,000 business trips recorded, down 4% year-on-year. Airlines have resumed and expanded routes, with the sector supported by “improved connectivity and a surge in direct flights from key international markets, such as China, the UK, and the United States.”
Aviation capacity is set to increase again in 2025, improving access to Sydney, Melbourne, Brisbane and Perth.
Cost pressures are pushing Australians towards lower-cost options such as caravan parks, holiday parks and eco-tourism. Families aged 35–50 are driving a rise in caravanning and camping, and visitors are favouring mid-range hotels over high-end stays. The growing preference for DIY travel reflects a desire for more control and flexibility.
New Zealand’s arrivals are increasing but remain below pre-pandemic levels. The country recorded 236,600 visitors in July 2025, up 14,700 on the previous year. For the year ending August 2024, arrivals reached 3.23 million, still short of five million before the pandemic.
New Zealand continues to foreground sustainability, with DOC aiming to preserve environments and “enhancing the visitor experience in a responsible manner.” However, rising demand and environmental disruptions, including flooding in Tasman, Nelson and Marlborough, present challenges.