Australians are redefining their travel preferences, as revealed by the latest annual report from the Australian Bureau of Statistics. The report highlights a significant shift in the top travel destinations for Australians in 2024-25, with Indonesia, New Zealand, Japan, the United States, and China leading the list.
Indonesia, particularly the island paradise of Bali, remains the top choice, accounting for 14 percent, or 1,741,370, of Australian trips. Meanwhile, Japan has climbed to third place with 910,640 visitors, a remarkable increase from previous years. The United States, however, has seen a decline, dropping to fourth place with 746,220 visits, marking a 25 percent decrease from a decade ago. China has also gained popularity, moving up to become the fifth most visited destination.
Changing Travel Patterns
The travel landscape has transformed significantly over the past decade. In 2014-15, the top destinations were New Zealand, Indonesia, the US, the UK, and Thailand. The current shift reflects broader trends and changing preferences among Australian travelers.
Japan’s Rise
According to Sara Dolnicar, Professor at the University of Queensland’s Business School, Japan’s growing popularity is driven by several factors, including a favorable exchange rate, affordable direct flights, and cultural attractions such as cuisine and traditions. Dolnicar notes, “The number of trips to Japan has tripled compared to data from 2014-15.”
Skyscanner’s 2025 travel trends report highlights that weather (66%), attractions (65%), food (63%), and culture (59%) are the top factors influencing destination choice.
The US Decline
In contrast, the decline in travel to the United States is attributed to political uncertainties and economic factors. Dolnicar explains, “I don’t know if it’s specifically the Trump administration or the perceived volatility of decision-making, but there’s no doubt it has affected international travel into the US.”
Despite the allure of iconic cities like New York, Australians are opting to delay their visits. “The way consumers operate is that they’ll still want to go to New York, but they’ll say, ‘maybe I’ll just wait a couple of years,'” Dolnicar adds.
China’s Growing Appeal
China’s rise as a travel destination is not solely politically motivated. A new policy introduced in November 2024 allows Australian passport holders to travel in China for 30 days without a visa, significantly boosting its appeal.
“Being able to walk in and get a stamp for 30 days — that would have had a big effect [on the figures],” Dolnicar said.
The ease of access has encouraged Australians to explore China, fulfilling long-held travel aspirations.
Broader Travel Influences
Beyond specific destinations, several broader forces are shaping Australian travel choices. Dolnicar identifies five key influences: exchange rates, political insecurities, natural disasters, the cost of living, and the post-COVID desire for international travel.
Cost remains a primary consideration. Margy Osmond, CEO of the Tourism and Transport Forum Australia, notes, “While the desire to explore remains strong, cost-of-living pressures and economic uncertainty are influencing how and when people travel.”
Exchange rates have shifted, with a 25% increase in the value of the Australian Dollar over the Japanese Yen in the last decade, while the exchange rate with the US Dollar has fallen by almost 9% over the last five years.
Osmond adds that while the US remains a bucket-list destination, higher costs and a weaker exchange rate have dampened demand.
Emerging Hotspots and Future Trends
Looking ahead, Osmond predicts a growing interest in destinations closer to home, particularly in South East Asia and the Pacific. “Many travelers are now gravitating towards destinations that offer better value and shorter travel times,” she says.
The Australian Travel Industry Association’s May 2025 travel trends report highlights significant year-on-year increases for Japan (38.4%), China (35%), and Vietnam (26.2%).
“The whole of Asia is very attractive. It’s close and it’s affordable,” Dolnicar said. “Vietnam is kind of an alternative to Indonesia … it’s a little bit more off the beaten track.”
Climate change is also poised to impact travel patterns, potentially making some destinations less viable. Dolnicar warns that measures such as carbon limits or biofuel mandates could increase travel costs, prompting a shift towards more local travel options.
As Australians continue to navigate these changing dynamics, the travel industry must adapt to meet evolving expectations, balancing affordability, sustainability, and seamless experiences.
