Australia’s NSW Tourism Breaks All Records as Visitor Spending Hits $61.9 Billion and 129.3 Million Travellers Fuel Historic Growth Across the State

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June 29, 2026 05:21 GMT+5:30

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The position of NSW Tourism, Visitor Economy Strategy 2035, domestic visitors, international visitors, and record $61.9 billion visitor spending has been significantly strengthened as New South Wales has been confirmed as Australia’s leading tourism destination. A total of 129.3 million domestic and international visitors has been recorded for the year ending March 2026, establishing a new benchmark for the state’s visitor economy.

Strong expansion has been recorded across all core tourism indicators, with growth being supported by long-term planning, improved connectivity, and sustained demand from key source markets. A 16 per cent year-on-year increase in total tourism expenditure has been registered, reflecting both higher visitor volumes and increased spending per trip. The tourism sector has been positioned as a major contributor to employment, investment, and regional development across the state.

Domestic tourism strength reinforces state-wide economic stability

Domestic travel activity within NSW has remained exceptionally strong, with 125.1 million domestic visitors recorded during the reporting period. Growth of 6.3 per cent year-on-year has been recorded, indicating continued internal travel momentum despite global economic uncertainty.

Domestic visitor spending has reached $46.6 billion, forming the largest share of total tourism revenue. Strong intrastate travel patterns have been observed, including short breaks, weekend travel, and repeat visits across both metropolitan and regional destinations.

Domestic tourism has been further supported by improved transport links, expanded accommodation capacity, and shifting consumer preferences toward nearby leisure travel. As a result, domestic demand has acted as a stabilising force within the visitor economy, ensuring consistent revenue flow across hospitality, retail, and transport sectors.

International visitor arrivals expand and spending reaches historic highs

International tourism in NSW has recorded strong growth, with 4.2 million international visitors arriving during the year, representing a 7.9 per cent increase. International visitor expenditure has reached a record $15.2 billion, standing 36 per cent above pre-pandemic levels.

China has remained the largest inbound market with 585,000 visitors, followed by the United States with 483,400 visitors and New Zealand with 443,300 visitors. Recovery across Asia, Europe, and North America has contributed to a more balanced and resilient international tourism profile.

International visitors have been recorded staying longer, with 107.8 million nights booked across NSW. Extended stays have directly increased expenditure across accommodation, dining, transport, and tourism experiences. Twelve major international markets have surpassed 2019 spending levels, with China leading at $5.36 billion in visitor expenditure, reflecting a 136 per cent increase.

Regional NSW emerges as a key driver of distributed tourism benefits

Regional NSW has continued to play a central role in tourism distribution, with 64.4 million combined domestic and international visitors recorded across non-metropolitan areas. Total regional visitor expenditure has reached $27.2 billion, ensuring that tourism benefits are widely shared across the state.

Growth in regional tourism has been supported by nature-based travel, coastal tourism, heritage experiences, and improved accessibility. Increased domestic travel demand has also contributed to higher visitation in regional destinations.

Key regional destinations have recorded strong day-trip volumes. The Hunter Valley has attracted 8.6 million visitors, the North Coast has recorded 6.7 million visitors, and the South Coast has reached 5.2 million visitors, confirming their importance in the state’s tourism structure.

Tourism experiences expand across culture, food, nature and events

Visitor engagement across tourism experiences has remained highly diversified. Western Sydney has attracted 29.1 million visitors across domestic and international segments, reinforcing its role as a major entry point for the state.

Cultural tourism has expanded, with 1.4 million overnight visitors participating in Aboriginal-related experiences. Caravan and camping tourism has recorded 5.6 million visitors, while food-based tourism has reached 6.6 million participants.

Wine tourism has attracted 2 million overnight visitors, while nature and outdoor activities have recorded participation from 22.2 million visitors. These figures highlight a strong shift toward experience-based tourism consumption.

Business tourism has also contributed significantly, with 5.2 million business event visitors travelling to Sydney. This segment has been supported by conferences, exhibitions, and corporate events, reinforcing Sydney’s position as a leading business tourism hub in the Asia-Pacific region.

Government strategy and major events drive sustained tourism expansion

The performance of NSW tourism has been closely linked to the implementation of the Visitor Economy Strategy 2035. Strategic planning has been focused on strengthening international competitiveness, increasing regional tourism activity, and improving global market reach.

Major sporting events such as The Ashes and the British & Irish Lions Tour have played a significant role in boosting inbound tourism demand. Visitor spending from the United Kingdom has exceeded $1 billion, reaching 171 per cent of pre-pandemic levels.

NSW has maintained its position as the leading Australian state across all key tourism indicators, including visitor numbers, visitor nights, and total expenditure, outperforming other major destinations such as Victoria and Queensland.

Strong outlook supported by sustained demand and global connectivity

A strong outlook has been indicated for NSW tourism based on continued international recovery, expanded airline connectivity, and sustained domestic demand. Record visitor numbers and expenditure levels have confirmed the resilience of the state’s visitor economy.

Growth has been reinforced by diversified tourism products, increased length of stay, and rising participation in cultural, nature-based, and urban tourism experiences. The tourism sector has remained a key driver of economic growth, employment creation, and regional development across New South Wales.