The latest ATIA Travel Trends Report shows how Australia’s travel sector continues to gain momentum even as 2025 draws to a close.
The sector is currently seeing solid growth in terms of both inbound and outbound travel, underpinned by strong performance across key Asian markets and a noteworthy rebound in major Western markets.
ATIA chief executive Dean Long pointed out that Australia’s inbound recovery has strengthened again this month with strong growth from both established and emerging markets.
He said: “The rebound from China and the UK highlights the enduring appeal of Australia and the importance of maintaining a competitive, well-connected aviation system."
Inbound travel
For the year ending September 2025, inbound visitor numbers increased from 8.1 million to 8.6 million.
Strong monthly growth of 6.7 percent was recorded across most of the year, with January and August exceeding 12 percent. While travel from China and the UK posted standout annual increases of 15.4 percent and 12.4 percent respectively, the United States recorded modest year-end growth.
Month-on-month September arrivals rose 10.4 percent, led by China, Singapore, New Zealand and the UK, although South Korea contracted and the USA showed only slight growth.
Outbound travel
Outbound travel also continued its upward trajectory, rising from 11.3 million to 12.4 million trips over the year, with positive results in every month; and February and May stood out with growth of 19 percent and 20 percent respectively.
According to Long: "Outbound travel continues to reflect the preferences of Australian travellers who are increasingly seeking value, cultural experiences and proximity. The strong growth in travel to Japan, China and other parts of Asia shows how quickly consumer sentiment responds to affordability and improved airline capacity."
Japan delivered the strongest annual growth of all outbound markets, climbing 24.9 percent, while travel to the USA remained flat and declined slightly overall.
September month-on-month results showed a mixed picture, with Japan, China and New Zealand performing strongly, contrasted by sharp declines to the USA, Singapore and Thailand.
Across all destinations, around 60 percent of outbound travel across the year was for holidays.
Visiting friends and family accounted for roughly one quarter to one third of all trips, while business travel remained comparatively low.
Specific market performance
The report highlights notable trends in USA travel flows. US visitors to Australia rose 4.5 percent year-on-year while Australian travel to the USA declined by 0.3 percent over the same period.
September results showed US inbound numbers increasing slightly, contrasted by a significant 12.7 percent drop in Australians travelling stateside.
Long opined on this: "The USA continues to be a mixed bag. While inbound arrivals from the US remain stable and growing modestly, Australians are clearly feeling cost pressures on long-haul travel. This highlights the need for greater competition and better pricing across key routes."
The aviation scene
High airfares and cost pressures are likely to be influencing destination choice, with Japan, Vietnam and China drawing stronger interest.
International aviation activity also strengthened: for the month of August, total international passenger numbers increased by approximately 9.5 percent year-on-year, driven by growth from Jetstar and Qantas.
The two carriers remained the largest contributors to passenger volumes, although their combined market share softened slightly in the year-end comparison.
Meanwhile, Singapore Airlines, Air New Zealand, and Emirates continued to hold steady as key competitors.
Domestic aviation capacity also rose, with major city pairings increasing seat supply by around three to six percent.
Routes including Adelaide to Melbourne, Gold Coast to Sydney and Brisbane to Melbourne saw notable gains.
These insights are based on domestic aviation data for August 2025, international aviation data for August 2025, and overseas arrivals and departures data for September 2025.
