Australia’s inbound tourism recovery is facing increasing pressure, with new industry data showing a clear softening in forward demand despite strong underlying interest in travel to Australia.
The latest Inbound Tourism Pulse and forward sentiment surveys from the Australian Tourism Export Council (ATEC) reveal that while inquiry levels remain strong across key markets including the US, China, India and Southeast Asia, 64% of tourism exporters now expect demand to soften from July onwards.
ATEC managing director Peter Shelley said the data highlights a shift in market conditions. “This is not a collapse in demand, people still want to come to Australia, but they are taking longer to commit and are more sensitive to price and global conditions driven by the Middle East conflict,” he said.
“That hesitation is now flowing through to forward bookings, and that’s where our members are starting to see less certainty.”
The data shows traveller hesitation is the single biggest emerging risk, cited by 56% of operators, while broader global pressures are also weighing on sentiment.
Cost-of-living pressures in key markets (35%), reduced confidence in international travel (19%) and challenges converting demand (16%) were all identified as major concerns heading into the peak season.
At the same time, fuel uncertainty and aviation costs are adding further pressure, with 65% of operators reporting concerns around future fuel supply and pricing, and flight costs continuing to impact Australia’s competitiveness.
“Operators are working hard to keep bookings moving but are absorbing increasing operational costs, adjusting schedules and maintaining relationships with their international partners to protect demand,” Shelley said.
“But that comes at a cost, and there is increasing pressure building behind the scenes.”
Industry respondents identified aviation pricing, government support and sustained international marketing as the most important levers to support recovery.
“With global competition for the international visitor dollar intense, staying visible in market, and being competitive on price will be critical as the industry manages its way through this period of global uncertainty,” Shelley said.
“That makes sustained investment in international marketing, including Tourism Australia, more important than ever.”
