Australians are rethinking their travel plans, as revealed by the latest annual report from the Australian Bureau of Statistics. In the 2024-25 period, the top five travel destinations for Australians were Indonesia, New Zealand, Japan, the United States, and China. This shift marks a significant change in preferences, with Indonesia, particularly Bali, maintaining its lead by accounting for 14 percent, or 1,741,370, of Australian trips.
Japan has also seen a remarkable rise, moving into third place with 910,640 visitors. The number of trips to Japan has tripled compared to data from 2014-15, overtaking the United States, which dropped to fourth with 746,220 visits. Notably, the US was the only country in the top five where travel volumes were lower than a decade ago, with a 25 percent drop from 2014-15.
Changing Tides: Japan’s Appeal and the US Decline
The rise in interest in Japan is attributed to several factors, according to Sara Dolnicar, a Professor at the University of Queensland’s Business School. These include a favorable exchange rate, more affordable and shorter direct flights, and cultural attractions such as cuisine, scenery, and traditions.
Skyscanner’s 2025 travel trends report highlighted that the top factors influencing destination choice were weather (66 percent), attractions (65 percent), food (63 percent), and culture (59 percent).
Conversely, travel to the United States has decreased by 25 percent compared to ten years ago. Dolnicar suggests that political instability may be a contributing factor. “I don’t know if it’s specifically the Trump administration or whether it’s the perceived volatility of decision-making, but there is absolutely no doubt that that has affected international travel into the US,” she said.
Dolnicar further explained that while Australians may still have a desire to visit iconic US destinations like New York, they may choose to delay their plans. “For Australians, there is a bit of unease. But I wouldn’t say it’s that people feel the fear in their bones,” she added.
China’s Rise and Broader Influences
China’s ascent to the fifth most popular travel destination for Australians is not necessarily politically motivated. Instead, it is likely linked to a new policy introduced in November 2024, allowing Australian passport holders to travel in China for 30 days without a visa.
“Being able to walk in and get a stamp for 30 days — that would have had a big effect [on the figures],” Dolnicar noted.
Beyond destination-specific factors, Dolnicar identifies five broader forces influencing Australian travel choices: exchange rates, political insecurities, natural disasters, cost of living, and the post-COVID desire for international travel. Cost, in particular, is a major consideration amid a cost-of-living crisis.
Margy Osmond, CEO of the Tourism and Transport Forum Australia, observed a “noticeable drop” in those who actually took holidays despite two-thirds of the nation planning a trip. This suggests that economic uncertainty is influencing travel decisions.
Future Trends and Emerging Hotspots
Osmond predicts that Australians may increasingly opt for destinations closer to home, particularly in Southeast Asia and the Pacific. “Many travellers are now gravitating towards destinations that offer better value and shorter travel times,” she said.
The Australian Travel Industry Association’s May 2025 travel trends report found Japan had the largest percentage increase year-on-year, with a 38.4 percent rise, followed by China (+35 percent) and Vietnam (+26.2 percent).
Dolnicar noted that Vietnam is becoming an attractive alternative to Indonesia, offering a more off-the-beaten-track experience. However, climate change is poised to impact future travel patterns, potentially making some destinations less viable and increasing ticket prices.
“Some popular ski areas will no longer have snow,” Dolnicar warned. “That sunny and blue-skied destination might now have rainfall.” She also highlighted the potential impact of carbon limits or mandated biofuel use on travel affordability.
As Australians navigate these changing dynamics, the travel industry will need to address challenges such as affordability, sustainability, and seamless border experiences to meet evolving expectations.
