Indonesia, New Zealand, Japan, China, India, US have all seen a significant shift in Australian travel preferences, as more holiday-makers opt for closer and more accessible destinations. This change is driven by a combination of factors, including stricter US travel regulations, political tensions, and the growing appeal of nearby countries like Indonesia and Japan, which offer rich cultural experiences and convenience. As a result, traditional long-haul destinations like the US have seen a decline, while neighboring countries have risen in popularity among Australian travelers.

Recent data from the Australian Bureau of Statistics (ABS) reveals a notable shift in travel patterns for Australian holiday-makers, with a significant decline in visits to the United States. In 2024-25, the US dropped from being the third most popular overseas destination to the fourth, marking a clear downturn in its appeal to Australian tourists. This marks a major change, considering the US has long been a top destination for Australians seeking to explore its vast and diverse landscapes.

The ABS figures indicate that travel to the US has fallen by 25% over the past decade. This is a stark contrast to the increasing popularity of other destinations around the world. One such destination is China, which has seen an upward shift, moving from seventh to fifth place in the rankings. Even with the ongoing advisory from the Australian government urging travelers to exercise a “high degree of caution” when visiting China, the country continues to attract Australian tourists.

Many factors contribute to the changing travel dynamics. The US, once a go-to destination for Australian travelers, has become less attractive in recent years. The shift can be traced back to stricter trade and entry regulations that were introduced following the election of former President Donald Trump. These regulations likely played a role in reducing the traditional Australian wanderlust for the US, which had once been synonymous with long-haul, adventurous holidays. The US has faced changes in visa and immigration rules, with more stringent controls that have caused some would-be travelers to rethink their plans.

As a result of these changes, Australians are seeking alternatives that offer more convenience and closer proximity. A travel booking company highlighted in a July trading update that it had observed a downturn in bookings to the US. This has spurred Australian travelers to consider destinations within closer reach. Countries such as China, Japan, Fiji, and New Zealand are seeing more interest as Australian holiday-makers search for closer, yet still international, travel options. This shift has been evident in the company’s booking patterns, as many customers either adjusted their travel plans to select destinations nearer to Australia or delayed making final decisions on their travel. These evolving trends disrupted typical booking patterns, particularly during peak travel periods.

This disruption has also had a financial impact on travel companies, with some adjusting their profit forecasts. The decline in bookings to the US and the shift toward regional travel has led to reduced expectations for profit growth. The company observed that volatility in traditional travel behaviors played a role in altering the flow of bookings during crucial periods of the year.

Despite the downturn in US travel, some destinations have continued to thrive. Indonesia, in particular, has remained Australia’s most popular international travel destination. With Bali’s continued popularity, Indonesia has maintained its position at the top, accounting for 14% of all overseas trips taken by Australians. In total, more than 1.74 million Australian trips were made to Indonesia, with a staggering 87% of those trips being for leisure. This highlights Indonesia’s enduring appeal as a holiday destination, with Bali’s beaches, vibrant culture, and affordability making it a top choice for Australian tourists.

Following Indonesia in popularity are New Zealand and Japan. New Zealand, Australia’s nearest neighbor, continues to attract a large number of Australian visitors, with 16.6% of inbound tourism coming from New Zealanders. This number represents a strong and consistent demand for travel between the two nations. Japan, on the other hand, has seen a surge in Australian visitors, with trips to Japan tripling since 2015. The Japanese market’s appeal has been driven by its rich cultural experiences, advanced infrastructure, and diverse tourism offerings, from city breaks in Tokyo to ski holidays in Hokkaido.

The United States, although still a major player in global tourism, now ranks fourth, with fewer Australians choosing it as their holiday destination. As for China, the rise of Chinese tourism to Australia, alongside the growth of its own outbound tourism market, is notable. While the Chinese government’s advisory on caution may have deterred some, the ongoing political and economic ties between Australia and China still encourage travel to this vast country.

India has also seen growth in the number of Australian travelers, with visits doubling in recent years. This can be attributed to increased flight availability, strong cultural ties, and a growing interest in India’s history, cuisine, and tourism infrastructure. As more Australians venture into the subcontinent, India is quickly becoming an increasingly popular destination for holiday-makers.

On the flip side, New Zealand continues to lead the way in terms of inbound tourism to Australia. New Zealanders accounted for 1.39 million visits to Australia, representing a substantial 16.6% of all international arrivals. This strong showing is reflective of the close geographical proximity and the strong social and economic ties that link the two countries, making it an easy and frequent travel choice for Kiwis.

Australia’s travel preferences are shifting, with Indonesia, New Zealand, Japan, China, India, and the US seeing changes in popularity. This is driven by stricter US regulations and a growing desire for closer, more accessible destinations offering rich cultural experiences.

In conclusion, Australian travel preferences have shifted in recent years, with the United States losing ground in favor of closer and more accessible destinations. Indonesia, New Zealand, and Japan have benefitted from these changing trends, with Australians seeking to explore regions closer to home. While global travel patterns continue to evolve, this shift reflects the changing dynamics of international tourism and the broader impact of political, economic, and social factors on travel decisions.