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GlobalData forecasts Australian domestic tourism to reach record high by 2025

GlobalData forecasts Australian domestic tourism to reach record high by 2025
June 23, 2021

According to leading data and analytics company GlobalData, Tourism Australia’s domestic campaign will contribute to a record number of domestic trips in the country by 2025: double that seen in 2020 and representing a 14% growth on pre-pandemic levels.

Broadcasting the phrase ‘holiday here, this year’ over social media channels, radio and outdoor advertising has paid off, and, although Australia will not see pre-pandemic levels for inbound trips until 2024, the increase in domestic tourism will cover some of the shortfalls and save thousands of jobs.

Craig Bradley, Associate Travel & Tourism Analyst at GlobalData, notes “due to the pandemic, domestic trips in Australia fell by 45% in 2020 from an all-time high of 116.7 million travellers in 2019. In response, Tourism Australia acted promptly to invest in a domestic tourism campaign that will reap benefits from 2021 onwards. The message to residents is simple: get out there and discover everything Australia has to offer.”

According to GlobalData projections, domestic trips will increase at a compound annual growth rate (CAGR) of 9% between 2021 and 2025, eventually reaching a record-breaking 133.4 million domestic trips.

Bradley adds “the clear target marketing campaign rolled out by Tourism Australia will no doubt have had a huge impact on these projections. The organisation has done well to focus on Australia’s key selling points, focusing on various destinations, culture, gastronomy and sightseeing.

“Furthermore, as always, they have used the influence of Australian national celebrities to push their agenda (in this instance Hamish Blake and Zoe Foster-Blake) to appeal to a wider audience.

“The Australian authorities have been unwavering with their stance on international travel restrictions. However, this strategy has kept infections to a minimum, meaning the health risks of domestic travel are reduced and will encourage residents to travel domestically. Ultimately the quick reaction from Tourism Australia in ensuring funds are in place to galvanise a national marketing campaign will have a significant effect on the Australian tourism industry’s short-term future.”

As the pandemic eases towards the end of 2021, international travel will eventually restart. Although Australia will not see pre-pandemic levels for inbound trips until 2024, the increase in domestic tourism will cover some of the shortfalls, saving thousands of jobs. In addition, moving forward, the strategic focus could set an example to other destination marketing organisations (DMOs) on how to react quickly and decisively during unprecedented times.

Image top: courtesy of Tourism Australia; chart above shows Global Data projections of Australia domestic tourism to 2025

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