Domestic overnight tourism consumption of accommodation services in Australia has seen varied trends from 2013 to 2023. Starting at AUD 8.54 billion in 2013, it experienced slight fluctuations until 2015, and then a steady rise from 2016 to 2019, peaking at AUD 9.44 billion. The COVID-19 pandemic drastically impacted the sector, plunging it to AUD 5.33 billion in 2020. Subsequently, a robust recovery was noted in 2021 and 2022, with values hitting AUD 9.8 billion in 2022 and AUD 9.93 billion in 2023.
Year-on-year variations highlight periods of growth and decline:
- 2019 saw a 2.95% increase from the previous year.
- The pandemic year 2020 faced a significant 43.48% drop.
- A substantial recovery in 2021 with a 63.03% increase.
- Further growth in 2022 by 12.66%, and a modest 1.34% rise in 2023.
The Compound Annual Growth Rate (CAGR) over the previous five years to 2023 averaged at 1.61%, signaling a recovering market. Future projections from 2024 to 2028 predict steady, albeit modest growth, with a 5-year CAGR of 1.09% by 2028, culminating in AUD 10.56 billion in domestic overnight tourism consumption of accommodation services.
Future trends to watch for:
- Potential impacts of global and local economic conditions on consumer spending.
- Shifts in tourism preferences, such as increased demand for eco-friendly and sustainable accommodations.
- Technological advancements in the accommodation sector, including the increased use of AI and digital platforms for bookings.
- The influence of domestic policies and international travel restrictions on domestic tourism.
