Those are the main findings from the latest Travel Trends Report from the Australian Travel Industry Association (ATIA).
The data highlights a remarkable 19.2% increase in U.S. inbound travellers to Australia in July compared to the same period last year. Meanwhile, outbound trips by Australians to the USA dropped by 2.7% in the same month.
The report, which analyses data for June and July, underscores the continued strength of Australia’s inbound and outbound markets.
For the year ending July 2025, inbound international visitors to Australia rose 6.1% to 8.49 million, a notable increase from eight million the previous year.
Strong increases were recorded from key markets including China, the UK, Japan, India and Singapore. In July, inbound travel surged by a huge 12.8% to 743,200 travellers, with growth led by the UK, Singapore, Hong Kong and the USA.
Outbound trips by Australians also boomed, reaching 12.32 million travellers for the year, up from 11.14 million.
The surge was led by destinations across Asia, with Japan (up 26.7% at 913,200 total travellers year on year), China (up 25.3% with 660,520 travellers), Vietnam (up 24.7% with 498,740 travellers) and Thailand (18.1% with 645,770 travellers) seeing the strongest increases.
Indonesia remains the number one destination at 1,748,140 travellers, a 11.8% increase year on year.
On the domestic front, seat capacity on major routes saw some shifts in June 2025 compared to June 2024.
The Perth-Sydney route experienced a significant increase of 11.7% in seat capacity, while popular routes like Gold Coast-Melbourne (-7.7%) and Adelaide-Sydney (-6.9%) saw declines.
“The remarkable 19.2% jump in US arrivals in July is a testament to the strong appeal of Australia as a holiday destination and underscores the importance of a resilient travel sector to capture this demand,” said Dean Long, ATIA CEO.
“The data is clear: Australians are driven by international experiences, with holidays accounting for over 50% of all trips.
“The continued popularity of Asia, led by destinations like Japan, China and Vietnam, shows a distinct preference for diverse, culturally rich travel that offers great value. This trend reinforces the need for our industry to remain responsive and agile to meet these shifting consumer preferences.”
