Vietnam Overtakes Indonesia and More in Australian Travel Growth as Overseas Holiday Demand Soars by Over 17% in 2026

Vietnam has overtaken Indonesia as the fastest overseas bound destination for Australian travellers due to a surge of 17.4% growth in travel from the region over the past year. Vietnam has become the preferred choice for Australians looking to travel abroad with its cheap holidays. The country saw a 17.4% increase in Australian visitors in the year through to August 2026, compared to 3.2% for Indonesia, 8.1% for Japan, 13.1% for China and a host of other established international destination markets, figures from Tourism Research Australia suggest. Vietnam has overtaken Indonesia as Australia’s fastest-growing overseas destination and a growing number of Australians are gravitating towards cheaper and more diverse Asian options on their holidaymakers’ budget.

According to the October Travel Trends report from the Australian Travel Industry Association (ATIA), Australian residents made 12.77 million international trips, representing a 3.2% year-on-year increase. The findings, based on Australian Bureau of Statistics (ABS) data, showed that several Asian destinations expanded considerably faster than the overall outbound tourism market. Vietnam attracted nearly 589,000 Australian trips, placing it among the country’s increasingly important international holiday markets.

Vietnam Surpasses Major Tourism Markets with 17.4% Growth

Vietnam’s performance represented one of the most significant developments in Australian outbound tourism during 2026. Its 17.4% annual growth exceeded the increases recorded by Indonesia, New Zealand, Japan, China and India.

Although Vietnam had not overtaken Indonesia in total visitor numbers, its faster expansion established it as a particularly dynamic destination among Australians travelling internationally.

China recorded 13.1% growth, followed by Japan at 8.1%, New Zealand at 5.6%, India at 5.3% and Indonesia at 3.2%.

Vietnam, China and Japan collectively accounted for nearly 250,000 additional Australian trips compared with the previous year. This highlighted the growing importance of Asian holiday markets within Australia’s international travel landscape.

Australia’s Most Popular Overseas Destinations in 2026

The following table presents the major destinations covered by the report, including Australian trip volumes and year-on-year growth rates for the 12 months ending August 2026.

Source: Australian Travel Industry Association, October 2026 Travel Trends report, based on Australian Bureau of Statistics data. Some trip totals are rounded. Exact decline percentages for the United States and United Kingdom were not provided in the accompanying report.

How Eight Major Destinations Performed in Australia’s Travel Market

The figures revealed contrasting patterns across Australia’s established and emerging tourism markets. Each destination retained a distinct position within the country’s outbound travel industry.

• Vietnam – Fastest-growing destination: Nearly 589,000 trips were recorded, with growth reaching 17.4%. The increase reflected strengthening demand for affordable holidays, cultural experiences and coastal escapes.
• Indonesia – Largest overseas market: Approximately 1.81 million Australian trips were recorded, representing 3.2% growth. Indonesia maintained its leading position by total travel volume despite growing more slowly than Vietnam.
• New Zealand – Second-largest destination: Around 1.5 million trips were registered, with 5.6% annual growth, confirming its continuing importance to Australian travellers.
• Japan – Strong Asian competitor: Australian travel reached 989,240 trips, increasing 8.1% and approaching the one-million-trip milestone.
• China – Rapidly expanding market: Approximately 750,000 trips were recorded, with 13.1% growth, making China another major contributor to expanding Asian travel demand.
• United States – Established long-haul destination: The country attracted 678,390 Australian trips, although demand declined compared with the previous year.
• India – Growing international destination: Approximately 622,820 trips were reported, representing 5.3% growth.
• United Kingdom – Traditional long-haul favourite: The market recorded 588,550 Australian trips, although annual travel numbers declined.

Together, these destinations demonstrated how Asian tourism growth was reshaping Australian international travel patterns.

Why Vietnam Is Attracting More Australian Holidaymakers

Vietnam’s expanding popularity has been supported by several interconnected advantages. Competitive accommodation prices, accessible transport, diverse attractions and improved air connections have strengthened its position.

One important factor has been the Australian dollar’s purchasing power against the Vietnamese dong. In September 2026, the Australian currency reportedly reached its strongest level against the dong in five years.

This provided Australian holidaymakers with greater purchasing power for locally priced accommodation, transport, dining and sightseeing.

Vietnam has also benefited from demand for destinations relatively close to Australia. Flights on several Australia–Vietnam routes take approximately eight to nine hours, making the country an accessible choice for international holidays.

Its combination of affordability and accessibility has allowed Vietnam to compete with more established Asian holiday destinations.

Beaches, Cities and Cultural Attractions Strengthen Vietnam’s Appeal

Vietnam’s tourism offering extends considerably beyond conventional beach holidays. Visitors can combine urban sightseeing, historical attractions, cultural activities, natural landscapes and coastal relaxation within a single itinerary.

Hanoi offers heritage attractions and cultural experiences, while Ho Chi Minh City provides an energetic urban environment and extensive sightseeing opportunities.

Coastal destinations have also become important contributors to tourism demand. Da Nang, Nha Trang and Phu Quoc offer beach holidays, resort accommodation and access to surrounding attractions.

Accommodation choices range from budget-friendly properties to luxury resorts, allowing different categories of Australian travellers to find suitable options.

This variety has helped Vietnam appeal to families, independent travellers, couples and holidaymakers seeking longer international breaks.

Australian Travel Preferences Support Vietnam’s Tourism Expansion

Travel preferences have also played an important role in explaining Vietnam’s growing popularity.

An Agoda survey, referenced in Australian travel industry reporting, highlighted relaxation, dining experiences and cultural exploration as important holiday motivations.

These preferences closely match Vietnam’s tourism offerings.

Relaxation-focused visitors can choose coastal resorts, while travellers interested in culture can explore historic cities and heritage attractions. Culinary experiences can also be included alongside sightseeing and leisure activities.

The availability of different experiences within a single country has strengthened Vietnam’s competitiveness among Australians seeking varied international holidays.

Improved Flight Connections and Visa Access Encourage Travel

Expanded air connectivity has made additional Vietnamese destinations more accessible to international visitors.

As connections have improved, Australian travellers have gained greater opportunities to explore areas beyond the country’s largest cities.

Tourism infrastructure development has also been reported in Da Nang, Sa Pa and Phu Quoc, including airport improvements and accommodation projects designed to support expanding visitor demand.

Vietnam’s entry policies offer another practical advantage. Australian passport holders are eligible to apply for Vietnam’s electronic visa, which can permit stays of up to 90 days with multiple entries.

Although Vietnam also provides 45-day visa-free entry to citizens of certain countries, this exemption should not be confused with the requirements applying to ordinary Australian passport holders.

Together, improved accessibility and accommodation development have supported broader tourism opportunities.

Da Nang, Hanoi and Phu Quoc Lead Australian Accommodation Searches

Accommodation search patterns provide further evidence of Australian interest in Vietnamese destinations.

According to Agoda platform data, five destinations were particularly popular among Australian travellers searching for accommodation.

Accommodation searches for all five destinations increased year-on-year.

Interest was also reported to be expanding towards smaller cities and natural areas, suggesting that Australian travel demand was becoming more geographically diverse.

Organised touring has contributed to this trend. Intrepid Travel offers more than 50 Vietnam itineraries, including cross-country journeys, cultural tours and family-focused experiences.

Vietnam’s Growing Importance to Australia’s Outbound Tourism Industry

Australia has also become an increasingly valuable source market for Vietnam’s inbound tourism industry.

According to the Vietnam National Tourism Administration, Australia consistently ranks among Vietnam’s ten largest international visitor source markets, with Australian arrivals showing approximately 21% year-on-year growth in the cited tourism data.

This differs from the 17.4% growth recorded in Australian outbound travel statistics because the figures come from separate statistical measures.

Vietnam’s strong performance indicates that Australian holidaymakers are increasingly considering destinations offering affordability, accessible travel and varied experiences.

Vietnam has overtaken Indonesia and other significant destinations in Australia’s growth of travel, registering a 17.4% increase in 2026. Cheap holidays, favorable exchange rates, and a variety of destinations have led the number of Australian tourists seeking to explore there.

Although Indonesia continues to rule Australian overseas travel by volume, Vietnam’s more rapid rise has shown its growing importance to the regional tourism market.