Australia’s international tourism sector has continued its strong post-pandemic recovery, with overseas visitor expenditure reaching a record AUD 57.6 billion (approximately USD 39.7 billion) in the year ending 31 March 2026, according to the latest International Visitor Survey (IVS) released by Tourism Research Australia (TRA).
For India, the figures underscore its growing importance as one of Australia’s most valuable inbound tourism markets. Indian travellers ranked as the country’s fifth-largest international source market by visitor spending, contributing around 5% of total international visitor expenditure during the period.
The latest data highlights not only the resilience of Australia’s visitor economy but also the strengthening travel relationship between Australia and India, driven by growing leisure, education, business and visiting friends and relatives (VFR) travel.
Australia’s inbound tourism reaches new milestone
According to Tourism Research Australia, total international visitor spending increased 16% year-on-year, reflecting sustained demand across most major source markets despite ongoing global economic uncertainty and operational challenges affecting international aviation.
The report noted that visitor spending rose across every major inbound market compared with the previous year, while international arrivals increased across all key markets except Vietnam.
Australia welcomed 8.5 million international trips during the year ending March 2026, representing a 10% increaseover the previous year. International visitors spent a combined 321.9 million nights across the country, up 9%, while spending within Australia alone reached AUD 40.9 billion, an increase of 20%.
The overall expenditure figure of AUD 57.6 billion includes spending made before and after travel, international airfares and connecting flights in addition to expenditure within Australia. Tourism Research Australia
India cements position among Australia’s highest-value markets
India maintained its position as Australia’s fifth-largest international market by visitor spending, highlighting the country’s expanding contribution to Australia’s tourism economy.
The ranking places India behind four traditional powerhouse markets:
- New Zealand
- China
- United Kingdom
- United States
China remained Australia’s largest international spending market, accounting for 29% of total visitor expenditure. The United Kingdom contributed 7%, while both the United States and New Zealand each represented 6% of overall international spending. India followed with 5%, underlining its growing significance for Australia’s tourism sector.
The results reinforce India’s emergence as one of Australia’s fastest-growing long-haul visitor markets, supported by expanding air connectivity, strong education links, business exchanges and increasing leisure travel.
Strong growth across major international markets
Several Asian and European markets recorded particularly strong growth during the reporting period.
Among visitor spending, Hong Kong recorded the highest proportional increase at 47%, followed by:
- United Kingdom: 35%
- Malaysia: 34%
- China: 30%
Visitor arrivals also showed impressive gains, with Hong Kong, Taiwan and China each registering 22% growth in trips, while arrivals from the United Kingdom increased 19%.
The data reflects Australia’s continued appeal across diverse international markets as airlines restore capacity and travellers resume long-haul journeys.
March quarter maintains positive momentum
The positive trend continued during the March quarter of 2026, with visitor expenditure within Australia reaching AUD 13.0 billion, representing a 15% increase compared with the same period in 2025.
International arrivals totalled 2.3 million trips, up 9%, while visitors spent 98.2 million nights in Australia, an increase of 10%.
Including international airfares and spending outside Australia, total visitor expenditure for the quarter reached AUD 17.8 billion, up 12% year-on-year.
Tourism Research Australia noted that these gains were achieved despite flight disruptions during the early stages of conflict in the Middle East, demonstrating the resilience of international travel demand.
Education-related expenditure rose by 15%, adding AUD 768 million, while holiday travel spending increased 17%, contributing an additional AUD 562 million.
Chinese tourism continues strong recovery
China continued to play a major role in Australia’s visitor recovery during the March quarter.
Chinese visitor arrivals increased by 25%, equivalent to approximately 71,000 additional trips, while visitor nights rose 34%, adding 6.1 million nights.
Spending by Chinese visitors within Australia climbed 14%, representing an increase of AUD 556 million compared with the March quarter of 2025.
Holiday travel from China recorded particularly strong performance, with visitor numbers rising 48% and expenditure increasing 53%, supported by the longest Lunar New Year holiday period on record.
Education remains Australia’s highest-value travel segment
Holiday travel remained Australia’s largest travel purpose, generating 3.7 million international trips during the year, an increase of 14%, while holiday visitors spent AUD 13.5 billion, up 22%.
Travel to visit friends and relatives accounted for 2.8 million trips, increasing 8%, with spending reaching AUD 5.5 billion.
Business travel remained relatively stable, recording 776,000 trips, up 1%, alongside expenditure of AUD 2.0 billion.
Education continued to be Australia’s highest-value travel segment.
International students generated 554,000 trips, representing 9% growth, while contributing AUD 15.3 billion in visitor spending—an increase of 23% and the highest expenditure among all travel purposes.
The report also highlighted distinct spending patterns across traveller categories.
Education visitors allocated 78% of their expenditure within Australia to accommodation, food and beverages. Holiday travellers devoted 57% of their spending to those categories and 13% to organised tours—the highest share among all visitor groups.
Visitors travelling to see friends and relatives spent a larger proportion on shopping and entertainment, reflecting reduced accommodation costs while staying with family or friends.
Growth recorded across Australia’s states and territories
Every Australian state and territory recorded higher international visitor spending during the year ending March 2026.
Tasmania led the country with a 36% increase, followed by:
- Queensland: 35%
- Northern Territory: 27%
- New South Wales: 18%
- Victoria: 17%
- South Australia: 16%
- Western Australia: 12%
- Australian Capital Territory: 12%
Visitor arrivals also increased across almost every destination.
Western Australia recorded the strongest growth in arrivals at 20%, followed by the Northern Territory at 16% and Queensland at 13%. The Australian Capital Territory was the only jurisdiction to record a decline in arrivals, falling 11%.
Outlook
The latest International Visitor Survey highlights Australia’s continued momentum as one of the world’s most sought-after long-haul destinations. With India firmly established among the country’s top five international tourism markets, the outlook points to further opportunities as aviation capacity expands, tourism partnerships deepen and demand for premium leisure, education and business travel continues to grow.
