Australia Regional Travel Enters a Powerful New Era as Millions Prepare for Summer 2026/27 Holidays Across Regional Destinations

Australia’s regional tourism market is set for a boom as almost 2.5 million visitors are set to enjoy regional destinations for summer 2026/27, with domestic demand showing no signs of slowing down, and spending power on accommodation, dining, shopping and local tours on the rise.

The findings suggest that regional tourism will remain an important part of Australia’s domestic visitor economy during the Christmas and summer holiday period. They also indicate that many local tourism businesses could benefit from increased travel activity, particularly in New South Wales, the Australian Capital Territory, Queensland and Victoria.

The research shows that close to 1.7 million Australians living in metropolitan areas and planning a holiday intend to travel to regional destinations. In addition, more than 860,000 people who already live in regional areas are preparing to take holidays elsewhere in regional Australia.

The study, carried out in August 2026, surveyed more than 1,700 Australians aged between 18 and 64. It examined travel intentions, destination preferences and expected spending behaviour ahead of the summer season.

One of the most surprising results was that 31% of Australians had not yet made plans for their Christmas and summer holidays. This presents a wonderful opportunity for destination marketing, accommodation providers, and last-minute deals.

Regional destinations gain momentum ahead of summer

Domestic interest in regional Australia remains strong as travellers look beyond the country’s largest cities for seasonal breaks. Coastal areas, country towns, nature-based destinations and short-drive holiday regions are likely to remain important during the summer period.

Regional travel offers several advantages for domestic visitors. Many destinations are accessible by road, allow greater flexibility in trip length and provide a wide range of accommodation options. Families, couples and independent travellers can choose between beach holidays, rural escapes, food and wine trips, camping breaks and outdoor experiences.

The latest travel intentions suggest that these types of holidays will continue to attract a large share of the domestic market.

However, travel intentions do not always translate directly into confirmed bookings. Final visitor numbers will depend on accommodation prices, household budgets, availability, transport costs and broader economic conditions.

The problem for tourism operators will be in converting interest into real visits while at the same time giving tourists a clear deal during one of the busiest times of the year.

New South Wales and ACT lead regional destination choices

Regional New South Wales and the Australian Capital Territory are currently the most popular choices among people planning regional summer holidays, accounting for 17% of destination preferences.

Regional Queensland follows with 14%, while Victoria accounts for 10%.

The results underline the continuing strength of eastern Australia’s regional tourism market. These areas combine major coastal destinations, inland towns, national parks, food regions and established holiday centres that are easily accessible from large population centres.

New South Wales benefits from extensive regional tourism infrastructure and a broad mix of coastal and inland destinations. Queensland continues to draw visitors looking for warm-weather breaks, while Victoria attracts travellers through its coastal routes, regional food destinations and nature-based experiences.

For many domestic tourists, accessibility is one of the main factors. Places within driving distance from Sydney, Brisbane, Melbourne and Canberra may be beneficial for attracting short breaks and longer summer stays.

Cafés and restaurants stand to gain from visitor spending

The impact of regional holidays is expected to extend well beyond hotels and accommodation providers.

According to the research, 83% of people considering a regional holiday plan to visit local cafés and restaurants. This highlights the important relationship between tourism activity and local food businesses.

Dining often forms a major part of the regional travel experience. Visitors are increasingly likely to spend time in local cafés, pubs, restaurants, bakeries and food markets during their trips.

This means higher visitor numbers can support a wide range of hospitality businesses, particularly in smaller communities where tourism demand can play an important role in seasonal revenue.

Restaurants and cafés that can manage increased visitor numbers during peak holiday weeks may be well positioned to benefit from the summer travel surge.

Local shops and visitor experiences could see stronger demand

Retail businesses may also receive a boost from domestic travellers.

Around 55% of prospective regional holidaymakers expect to spend money at local shops. This could benefit independent retailers, markets, local producers, gift stores and other small businesses.

At the same time, 48% of travellers plan to purchase local experiences.

This may include tours, attractions, outdoor activities, cultural experiences, wildlife visits, food and wine activities and other paid visitor products.

The findings show how regional tourism can spread visitor spending across several sectors of the local economy. Accommodation may be one of the first travel expenses, but money spent on meals, shopping and activities can extend the economic value of every visitor.

For smaller regional businesses, the summer holiday period can therefore become a crucial part of annual trading performance.

Domestic tourism continues to support Australia’s visitor economy

Official tourism data shows that domestic travel remains a major source of visitor expenditure across Australia.

Australians made 27.1 million domestic overnight trips during the June quarter of 2026, generating A$25.7 billion in spending.

Although the number of overnight trips declined by 2% compared with the previous year, total expenditure increased by 2%.

Accommodation accounted for A$7.3 billion of domestic overnight spending during the quarter.

Restaurant and takeaway meals generated A$3.8 billion, while petrol spending reached A$2.7 billion.

These figures underline the wider economic role of domestic travel. Visitor spending reaches multiple industries and supports businesses far beyond the accommodation sector.

For regional communities, this is especially important because tourism activity often supports hospitality, retail, fuel, transport, entertainment and recreational businesses at the same time.

Caravan and camping travel strengthens regional tourism

Caravan and camping tourism also remains a major contributor to regional Australia.

During 2025, Australians made 17.3 million domestic overnight caravan and camping trips.

Travellers spent A$10.3 billion during those trips, with A$8.6 billion directed towards regional Australia.

Regional destinations also accounted for 87% of caravan and camping nights.

The scale of this activity highlights the importance of road-based tourism to regional communities.

Caravan parks, campgrounds, fuel stations, supermarkets, cafés, restaurants and regional attractions can all benefit from visitors travelling between destinations by road.

The sector also gives travellers greater flexibility when choosing less crowded and more remote locations.

This makes caravan and camping tourism particularly important during the summer season, when many Australians take extended holidays.

Summer offers strong opportunities for regional accommodation providers

Hotels, motels, holiday parks, caravan parks, short-stay accommodation providers and other regional businesses could benefit from stronger domestic demand during the coming months.

The approaching Christmas and summer period is traditionally one of the busiest times for domestic travel in Australia.

For accommodation operators, the large number of people still deciding where to travel could create opportunities for late bookings.

Competitive pricing, flexible packages and clear information about local activities may help businesses attract travellers who have not yet made final decisions.

Smaller destinations may also gain from travellers seeking alternatives to heavily booked or more expensive tourism centres.

Value for money remains a major factor

Despite strong travel intentions, affordability is likely to influence final booking decisions.

Australian households continue to balance discretionary spending with wider living costs. This means travellers may compare accommodation, transport and activity prices carefully before committing to a regional holiday.

Regional destinations that offer clear value may therefore have an advantage.

Travellers are also likely to consider the total cost of the trip rather than accommodation alone. Fuel, dining, shopping and attraction costs can all affect destination choice.

Tourism businesses that communicate pricing clearly and offer simple packages may be better positioned to convert interest into confirmed bookings.

Late planners create an important tourism opportunity

The 31% of Australians who had not finalised their summer plans represents one of the most important opportunities for the regional tourism sector.

Late planners can be influenced by accommodation availability, weather, special offers, events and destination marketing.

This means the final weeks before Christmas could become an important booking period.

Regional tourism operators may be able to attract these travellers through direct offers, flexible booking conditions and clear information about local experiences.

Destinations that communicate what visitors can do, where they can stay and how much they can expect to spend may have a stronger chance of attracting undecided travellers.

Regional tourism remains important for local economic activity

The summer 2026/27 outlook points to continued domestic demand for regional holidays across Australia.

Nearly 2.5 million Australians are considering regional travel, while strong spending intentions suggest that local restaurants, retailers and visitor attractions could benefit alongside accommodation businesses.

New South Wales and the Australian Capital Territory currently lead destination preferences, followed by Queensland and Victoria.

At the same time, official domestic tourism figures show that Australians continue to spend billions of dollars on overnight trips, accommodation, dining and transport.

The combination of strong travel interest and high visitor spending gives regional tourism businesses an important opportunity during the coming summer season.

Australia’s regional travel market is entering a powerful new phase as nearly 2.5 million travellers prepare for summer 2026/27 holidays, boosting demand for regional stays, dining, shopping and local experiences.

Australia’s summer 2026/27 travel season is set to shine on regional destinations as thousands of domestic travellers look to enjoy the regions away from the capital cities. With demand for accommodation, dining, shopping and local experiences expected to surge, a boost to regional tourism businesses and communities could be well within reach for the nation this season.