Forecast: Business and Government Domestic Tourism Consumption of Tourism Products in Australia

Between 2012 and 2022, domestic tourism consumption in Australia displayed a general upward trend, peaking in 2022 at AUD $20.48 billion. Notably, 2020 saw a significant dip of 43.42% year-on-year due to the impact of the COVID-19 pandemic, plummeting to AUD $10.86 billion. However, a robust recovery followed, with a remarkable 65.25% year-on-year increase in 2021. As of 2023, the consumption stood at AUD $20.54 billion, maintaining a positive trajectory in the aftermath of the pandemic recovery. Over the last 5 years, the Compound Annual Growth Rate (CAGR) was 4.35%, reflecting steady growth.

Future forecasts indicate a continued growth in domestic tourism consumption, with projected values reaching AUD $22.64 billion by 2027. However, the forecasted five-year CAGR of 1.97% suggests a deceleration compared to previous years. Over the next few years, the focus will likely be on the ability of the tourism sector to innovate and adapt to evolving consumer preferences and external economic factors.

Future trends to watch for:

• Potential impact of global economic conditions on domestic spending capabilities
• Adoption of digital and technological advances in tourism services
• Increasing emphasis on sustainable and eco-friendly tourism