How Much Does Australia Rely on Tourism?

By Anna Duncan

Australia is a country that is well-known for its beautiful landscapes, diverse wildlife, and stunning beaches. With such a rich and vibrant environment, it’s no surprise that tourism plays a vital role in the country’s economy. In fact, tourism is one of the largest industries in Australia and contributes significantly to the nation’s GDP.

How much does Australia rely on tourism?

Tourism is a significant contributor to the Australian economy, generating billions of dollars every year. In 2019, the industry contributed AUD 60.8 billion (USD 42 billion) to the GDP, making up around 3% of the total GDP. Additionally, it provided over 5% of total employment in Australia or around 666,000 jobs.

The impact of COVID-19 on Australian tourism

However, with COVID-19 pandemic hitting every corner of the world, many countries’ economies have suffered a significant setback, including Australia’s tourism industry. The country has been forced to close its borders to international visitors since March 2020 due to travel restrictions and quarantine measures.

As per Tourism Research Australia (TRA), there was an enormous decline in international visitors during this period as compared to previous years. The number of visits fell by more than 70% from January to July 2020 due to COVID-19 restrictions.

Domestic tourism – A savior for Australian tourism

While international tourism has been hit hard by the pandemic, domestic travel has helped fill some gaps in revenue for many businesses within the industry. As Australians were restricted from travelling overseas due to border closures and travel restrictions, they took more road trips or local holidays within their own states.

Domestic visitors spent AUD51 billion (USD35 billion) on overnight trips throughout Australia during June 2019-June2020 financial year as per ABS statistics released in September last year.

The way forward for Australian tourism

The Australian government has announced several support packages for the industry to assist businesses to survive through this challenging period. The government has also launched a campaign called “Holiday Here This Year,” encouraging Australians to travel locally and support local tourism.

The reopening of borders with New Zealand in April 2021 has been a ray of hope for the tourism industry. Australia’s COVID-19 vaccine rollout is also expected to bring significant benefits, with the gradual easing of restrictions and border closures, making it easier for international tourists to visit again.

Conclusion

Tourism plays a crucial role in the Australian economy and provides employment opportunities for hundreds of thousands of people across the country. While COVID-19 has undoubtedly had a significant impact on the industry, domestic tourism has helped fill some gaps in revenue for many businesses within the sector. With ongoing support from the government and a gradual easing of restrictions, there are hopes that Australia’s tourism industry will bounce back stronger than ever before.