Australia Tourism: Indonesia and NZ Gain as UK and US Fall

Australia Moves With Indonesia and Others as Tourism Data Exposes a Travel Divide Across UK, US Markets

Antara Mitra Written by Antara Mitra

Published

9 mins to read
Sikidang crater
Image Source Ministry of Tourism Republic of Indonesia

Australia’s international tourism market is moving in different directions. Australian Bureau of Statistics figures released on 13 October show that August 2026 short-term resident returns from Indonesia rose 10.6% and New Zealand rose 6.6% compared with August 2025. Returns from the United Kingdom fell 14.3% and the United States fell 2.2%. Overall returns still increased 1.5% to 986,250. The divergence matters to destination marketers, tour operators and accommodation businesses because visitor volumes and trip values are changing at different speeds.

Australian Outbound Tourism Data Exposes a Four-Market Divide

The ABS recorded 178,830 returns from Indonesia and 120,830 from New Zealand during August. The UK accounted for 57,950 and the US for 49,600. Indonesia remained Australia’s largest destination by this measure, taking 18.1% of all short-term resident returns.

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Main country of stayAugust 2019August 2025August 2026Annual changeChange in trips
Indonesia132,910161,660178,830+10.6%+17,170
New Zealand112,640113,390120,830+6.6%+7,440
United Kingdom72,55067,64057,950−14.3%−9,690
United States84,60050,70049,600−2.2%−1,100
All destinations930,970972,070986,250+1.5%+14,180

The figures describe Australians returning during August after overseas journeys lasting less than a year. They are not August departures or counts of unique holidaymakers. The latest figures are subject to revision. This distinction matters when comparing the Australian release with arrival data compiled by other countries.

Indonesia and New Zealand Account for Most of the Net Increase

A combined 299,660 residents returned from Indonesia and New Zealand, compared with 275,050 a year earlier. That is growth of 24,610 returns, or 8.9%. The UK and US combined fell from 118,340 to 107,550, a loss of 10,790 or 9.1%.

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What the Combined Numbers Reveal

Across the four markets, the net gain was 13,820 returns. That represents approximately 97.5% of the 14,180 increase recorded across all destinations. Movements across the remaining markets added only around 360 on a net basis, subject to rounding.

The ratio between returns from the two nearby destinations and returns from the two long-haul destinations widened from about 2.32 to 2.79. This is a comparison of four selected countries, not evidence that every regional market is growing or every distant destination is declining.

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Indonesia Tourism Gains as Bali Maintains Its Australian Connection

Indonesia produced the largest absolute increase of the four destinations, adding 17,170 returns year on year. Its August total was also 34.5% higher than in August 2019, showing growth beyond the pre-pandemic benchmark.

The Bali provincial statistics office recorded 685,994 direct international arrivals in August 2026. Australian passport holders represented 23.51% of those arrivals. Separately, Indonesia’s national statistics agency reported 1.60 million international visitor arrivals nationwide, up 6.27% annually.

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Those figures use different country and trip definitions from the ABS. Nevertheless, they establish Indonesia’s tourism importance. Bali’s star-rated hotel occupancy reached 68.19%, below the 69.54% recorded in August 2025. More resident returns from Indonesia therefore do not automatically mean higher room occupancy, rates or profits across every local business.

New Zealand Tourism Benefits From a Strong Trans-Tasman Market

New Zealand added 7,440 resident returns, reaching 120,830 in August. That was 7.3% above August 2019, suggesting the trans-Tasman market has moved beyond its earlier benchmark.

The latest available corresponding New Zealand inbound release, from Stats NZ, covers July rather than August. It recorded 134,900 visitor arrivals from Australia, a July record, and Australians accounted for 53% of all overseas visitor arrivals that month. The August New Zealand release is scheduled for 14 October.

The New Zealand Ministry of Business, Innovation and Employment says visitor arrivals from Australia in the year to June 2026 reached 105% of their pre-pandemic level. For tourism planners, that strengthens the case for city breaks, nature-based experiences, family visits and shorter repeat itineraries.

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United Kingdom Tourism Faces a Softer Australian Return Count

The UK registered the steepest percentage drop among the four markets, losing 9,690 August returns. The monthly total was 20.1% below its August 2019 level.

This does not mean Britain has stopped attracting Australian travellers. VisitBritain forecasts 1.1 million Australian visits to the UK in 2026 and visitor spending of £1.7 billion. Those projections use a different measure and calendar from ABS resident returns and should not be subtracted from the Australian totals.

British tourism authorities also pursued sales activity in September 2026, bringing UK suppliers together with more than 300 Australian buyers and advisers in Sydney and Melbourne. VisitBritain’s updated national forecast expects UK inbound visits from all long-haul markets to decline 3% in 2026, despite growth expected from European markets.

That context makes conversion, regional product development and visitor value more useful commercial measures than one monthly volume figure.

United States Tourism Remains Valuable Despite Fewer Returns

The US recorded 49,600 Australian resident returns in August, down 1,100 from 2025. It remains a sizeable long-haul market, but its August return count was 41.4% below August 2019.

The US Department of Commerce reported 960,000 arrivals from Australia in calendar 2025, down 6.5% from the previous year in its separate inbound series. It also reported US$7 billion in travel exports from Australia in 2024, with an average travel export value of US$6,819 per arrival.

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The American figures show why arrivals should not be treated as a complete measure of tourism performance. A smaller flow of longer-staying, higher-spending visitors can remain important to hotels, attractions, tours and regional economies. The official series does not prove that travellers abandoned the US in favour of Indonesia or New Zealand.

Annual Tourism Statistics Show the Split Predates August

The ABS annual dataset provides a less seasonal test. Across the financial year ending June 2026, total short-term resident returns reached 12,711,650, up 3.7%. Holidays accounted for 60.8%, visits to friends and relatives for 26.0%, business for 5.2% and conferences for 2.2%.

Destination2024–25 returns2025–26 returnsAnnual changeMedian trip duration, 2025–26
Indonesia1,741,3701,777,270+2.1%9 days
New Zealand1,409,3201,489,460+5.7%8 days
United Kingdom635,510606,080−4.6%25 days
United States746,220679,600−8.9%16 days

Source: ABS annual overseas travel analysis. Annual figures cover July 2025 to June 2026, not August 2026.

The annual changes mirror August’s direction. They also show why a one-month comparison needs longer-term context. Compared with 2018–19, annual 2025–26 resident returns had recovered to 135.6% for Indonesia and 103.1% for New Zealand, but only 90.8% for the UK and 63.0% for the US.

Trip Length and Visitor Spending Matter More Than Rankings Alone

The ABS recorded a median of nine days for Indonesia, eight days for New Zealand, 25 days for the UK and 16 days for the US in 2025–26. The overall overseas median was 14 days.

A median is not an average and cannot be multiplied by visitor counts to calculate actual total nights. Even so, it highlights different tourism products. Nearby trips can suit shorter leave periods and repeat visits; longer-distance itineraries can support more accommodation nights, excursions and multi-stop packages.

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The balance between volume and yield is critical. Tourism boards should track visitor nights, spending per trip, booking lead times and regional distribution alongside border movements. Hotels and experience suppliers should not assume a fall in arrivals produces the same percentage decline in revenue.

Entry Rules and Booking Risks Differ Across the Four Markets

One shared market does not mean shared border requirements. Australian residency is not the same as Australian citizenship, and the traveller’s passport determines many entry conditions.

DestinationVerified entry planning issue for Australian passport holdersOfficial authority
IndonesiaVisa-on-arrival arrangements and an online arrival declaration require checks before departureAustralian Smartraveller
New ZealandAustralian citizens generally need neither a visitor visa nor an NZeTA; Australian permanent residents usually require an NZeTAImmigration New Zealand
United KingdomEligible Australian visitors generally need an ETA unless exempt; dual British or Irish citizens follow separate document rulesUK Home Office
United StatesEligible Australian citizens can use the Visa Waiver Program for up to 90 days with valid ESTA approvalUS Department of State

These are operational checks, not evidence that any entry system caused the August differences. Agents also need to examine stopover rules, insurance, cancellation terms and journey-specific advisories.

Why the Figures Require Careful Interpretation

Under the ABS methodology, the main country of stay is where an Australian resident spent the most time overseas. A trip covering several nations is not counted as a separate resident return for each destination.

The data therefore cannot establish individual substitution between markets, travellers’ motivations, exact bookings, household budgets or total spending overseas. August counts journeys completed that month, including trips started earlier.

Nor does a decline in UK and US returns prove a general long-haul collapse. Other destinations, including Japan and Vietnam, follow different growth paths. Strong tourism reporting separates these measured patterns from hypotheses about prices, journey times or consumer confidence.

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Operational Priorities for Travel Agents and Tour Operators

  • Review Indonesia and New Zealand inventory against the stronger recorded demand, while checking seasonality and actual booking conversion.
  • Protect profitable UK and US long-haul products through flexible departures, longer-stay options and destination-specific experiences rather than indiscriminate discounting.
  • Verify each customer’s nationality, residency, authorisations and transit requirements before ticketing.
  • Monitor accommodation yield, visitor nights and forward bookings rather than treating trip counts as revenue forecasts.
  • Track later ABS revisions and New Zealand’s scheduled 14 October release before making irreversible capacity decisions.

Tourism Outlook Beyond October 2026

Australia’s latest return figures point to a more uneven outbound tourism market, not an end to long-haul journeys. Indonesia and New Zealand have stronger volume momentum, while the UK and US retain important longer-stay and higher-value segments. Future growth will depend on whether destinations convert demand into visitor nights, regional dispersal and sustainable tourism income. The most useful next test is whether the August pattern continues across several months and appears in comparable spending and booking data.

FAQs

Which countries gained Australian resident returns in August 2026?

Indonesia increased 10.6% to 178,830 and New Zealand increased 6.6% to 120,830, compared with August 2025. They were the two largest destinations in the ABS August ranking.

Which long-haul markets recorded declines?

The United Kingdom decreased 14.3% to 57,950 returns and the United States decreased 2.2% to 49,600. These changes concern two specific destinations rather than all long-haul tourism.

Do the figures represent holidays taken in August?

No. They count short-term Australian resident returns recorded during August. Journeys may have started earlier, and reasons can include holidays, family visits and business.

Why could fewer long-haul trips still bring tourism revenue?

Long-haul visitors often stay longer and can spend more per journey. The 2025–26 ABS median trip duration was 25 days for the UK and 16 days for the US, but spending outcomes require separate data.

Does Australian residency guarantee the same visa requirements?

No. Entry requirements depend on citizenship, passport, travel purpose and other conditions. For example, Australian citizens and permanent residents face different NZeTA requirements for New Zealand.

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