Australia and New Zealand Tourism Surge: Uncover the Hot New Travel Insights Shaping Global Journeys!

Published on November 21, 2025

The travel and tourism industries in Australia and New Zealand are experiencing notable growth and transformation in 2025. After the challenges faced during the global pandemic, both countries have made significant strides in recovering their respective tourism sectors. However, their recovery trajectories and market dynamics show interesting contrasts. From booming visitor numbers in Australia to New Zealand’s focus on sustainable tourism, both countries offer valuable insights into the evolving landscape of global travel.

In this article, we will explore the latest travel trends, visitor behaviors, and economic impacts of the tourism sectors in Australia and New Zealand, providing essential insights for travelers and industry professionals alike.

Australia: Booming Tourism and Resilient Recovery

International Arrivals and Visitor Spend in Australia

The Australian tourism industry has rebounded significantly in 2025. International arrivals are increasing steadily, and the economic impact of tourism is now far surpassing pre-pandemic levels. According to Tourism Research Australia(TRA), Australia welcomed 7.8 million international visitors in the year ending June 2025, marking a 10% increase from the previous year.

This increase in international visitors has had a corresponding impact on tourism-related spend. Holiday travel accounted for around AUD 13.0 billion, reflecting a 27% increase year-on-year. Meanwhile, travel for visiting friends and relatives (VFR) brought in AUD 5.9 billion, also showing strong growth of 23% compared to 2024. This reflects the pent-up demand for travel to Australia, with visitors eager to explore the country after years of limited travel options due to the pandemic.

Interestingly, while business travel remains sluggish, accounting for only about 745,000 trips (down 4% year-on-year), the growth in leisure travel has more than compensated for this decline. The rise in visitor spend and the increase in international visitors underscore the vital role of the tourism sector in Australia’s economic recovery post-pandemic.

Strong Recovery in Australia’s Aviation Sector

One of the key drivers of this growth in international travel to Australia is the aviation sector. With improved connectivity and a surge in direct flights from key international markets, such as China, the UK, and the United States, Australia is increasingly accessible to travelers around the world. The airlines have resumed and even expanded their routes, offering competitive fares and a more efficient flight network that caters to growing demand.

Australia’s aviation capacity is expected to further increase in 2025, with additional seats on flights connecting major hubs like Sydney, Melbourne, Brisbane, and Perth to international destinations. This expanded network has not only improved air travel access but also created new opportunities for regional tourism.

Shifts in Domestic Travel Trends

While international tourism continues to surge, domestic travel is also showing notable trends. Australians are increasingly opting for more regional and nature-based travel experiences. Driven by a combination of cost pressuresand a desire for authentic, off-the-beaten-path experiences, travelers are moving away from luxury accommodations and opting for more budget-friendly options such as holiday parks, caravan stays, and eco-tourism experiences.

Caravaning and camping have seen a significant uptick, especially among families and middle-aged travelers. According to recent reports, Australians between the ages of 35 and 50, particularly families with children, have embraced caravan parks and self-drive holidays, highlighting a shift toward more flexible, budget-conscious travel options.

Visitor Preferences and Travel Experience

As the tourism industry adapts to new travel trends, Australians are increasingly seeking flexible and personalized travel experiences. The rise of DIY travel and customized itineraries reflects a growing desire for more control over the travel experience. Many visitors are opting for multi-destination trips that combine urban exploration with visits to natural landscapes, creating diverse and dynamic travel plans.

Accommodation preferences have also shifted, with fewer travelers opting for luxury hotels and more seeking out 3-4 star hotels or vacation rentals that offer better value for money. The demand for affordable but comfortable lodging is driving the market towards more mid-range accommodations that can cater to both solo travelers and families.

New Zealand: A Focus on Sustainable Travel and Market Growth

Recovery and Visitor Numbers in New Zealand

In New Zealand, the recovery of the tourism sector has been more gradual. While visitor numbers are on the rise, they have not yet fully rebounded to pre-pandemic levels. According to data from Statistics New Zealand, the country welcomed approximately 236,600 visitors in July 2025, reflecting a steady year-on-year increase of 14,700 arrivals. This marked improvement shows the continued growth of international tourism to New Zealand, albeit at a slower pace compared to Australia.

For the year ending August 2024, New Zealand recorded about 3.23 million international visitors, a significant recovery from 2023 but still below the 5 million mark reached before the pandemic. The primary source markets for visitors to New Zealand remain Australia, the United States, and the United Kingdom, with strong growth expected from China and India in 2025.

Shifting Focus: Sustainable and Experience-driven Tourism

New Zealand has placed a strong emphasis on sustainable tourism in 2025. With the Department of Conservation(DOC) focusing on preserving natural environments and enhancing the visitor experience in a responsible manner, the country aims to balance economic recovery with environmental preservation.

Tourism New Zealand (TNZ) has implemented strategies to encourage more year-round travel, reducing the pressures on peak-season destinations. By diversifying the tourism product, the country is focusing on lesser-known regions and promoting experiences beyond the traditional tourist hotspots like Queenstown and Rotorua.

Nature-based travel continues to dominate in New Zealand, with outdoor activities such as hiking, biking, and eco-toursleading the charge. Visitors are drawn to the country’s pristine landscapes, including national parks and protected areas, where they can enjoy sustainable travel experiences that minimize their ecological impact.

Aviation and Connectivity in New Zealand

As with Australia, aviation plays a crucial role in the recovery of the New Zealand tourism industry. There has been a noticeable increase in the number of flights between New Zealand and major international hubs, especially Australia. With the expansion of low-cost carriers and an increase in flight capacity, New Zealand is more accessible to travelers from Asia, the UK, and North America than ever before.

A key factor driving New Zealand’s tourism recovery is its proximity to Australia, which remains the largest inbound market. In 2025, air capacity between Australia and New Zealand is expected to increase further, making it easier for Australian travelers to visit their neighbors across the Tasman Sea. This increased connectivity has helped New Zealandcapitalize on the boom in short-haul travel from Australia.

The Rise of Regional Tourism

Another prominent trend in New Zealand is the rise of regional tourism. Popular areas such as Auckland, Wellington, and Christchurch continue to draw visitors, but travelers are now more frequently exploring smaller towns and remote areas. This shift reflects the desire to escape the crowds and experience more authentic and peaceful locations. South Island, with its rugged landscapes, coastal beauty, and adventure tourism opportunities, remains a key destination for travelers seeking nature-based experiences.

Despite the focus on sustainable and experience-driven tourism, New Zealand faces challenges in managing visitor flows to its most popular destinations. Overcrowding at high-traffic locations, such as the Fiordland National Park, remains an issue. However, local governments and tourism bodies are working on capacity management strategies to ensure a balanced approach to growth.

Environmental Risks and Challenges in New Zealand

One of the key risks facing New Zealand’s tourism sector in 2025 is its vulnerability to environmental disruptions. Natural disasters, such as floods, earthquakes, and storms, pose significant threats to tourism infrastructure and visitor safety. In 2025, New Zealand experienced severe flooding in areas like Tasman, Nelson, and Marlborough on the South Island, which caused significant disruptions to transportation and accommodation.

The government and tourism sector are working to improve resilience and disaster recovery strategies to mitigate these risks and ensure the safety of travelers. Emergency preparedness and flexible travel policies have become essential in managing these disruptions.

Key Takeaways and Predictions for the Future

Australia: Continued Growth and Recovery

As of 2025, Australia’s tourism industry is on a strong recovery path. With a booming aviation sector, increased visitor spend, and a shift towards regional tourism, Australia is poised to surpass pre-pandemic levels of visitor numbers by the end of 2025. The focus on flexible and DIY travel options, along with the rise in caravanning and nature-based tourism, will shape the future of the Australian travel market.

New Zealand: Sustainable Growth and Regional Focus

For New Zealand, 2025 marks a year of recovery, though the country is still working towards regaining pre-pandemic visitor levels. The focus on sustainable tourism, regional diversification, and nature-based experiences will continue to be at the forefront of the country’s tourism strategy. Aviation connectivity will be key to expanding New Zealand’sinbound tourism, particularly from Australia. However, environmental risks remain a significant challenge, and the industry must remain resilient and adaptable in the face of natural disasters.

Looking Ahead

Both countries are expected to continue benefiting from strong airline connections, international demand, and a growing focus on sustainability. Travelers will need to be more flexible and aware of the evolving travel landscape, with a clear emphasis on authentic experiences that support local communities and preserve natural environments.

Conclusion

As the travel industry recovers and adapts to new realities, Australia and New Zealand are emerging as two dynamic tourism hubs in 2025. While Australia is experiencing rapid growth in international arrivals, New Zealand is embracing sustainable and experience-driven tourism. Both nations are navigating post-pandemic recovery with strategic initiatives designed to meet the growing demand for travel while protecting their unique environments and fostering economic resilience.

For travelers and industry stakeholders, flexibility, sustainability, and authenticity are the keywords to watch in 2025 as Australia and New Zealand redefine the future of global tourism.