International tourism to Australia and New Zealand has recovered substantially from the pandemic collapse, with visitor arrivals approaching 85-90% of 2019 levels by mid-2025. These headline numbers mask significant changes in who’s traveling, where they’re going, and how much they’re spending.

Australian international visitor arrivals are running at approximately 8.5 million annually, compared to 9.5 million in 2019. New Zealand is seeing around 3.2 million international visitors versus 3.9 million pre-pandemic. The gap is narrowing but recovery remains incomplete, particularly from certain source markets.

Chinese visitor numbers remain well below pre-pandemic levels in both countries. China previously represented the largest or second-largest source market for both destinations. Current Chinese visitor numbers are running at roughly 50-60% of 2019 levels. Multiple factors contribute—China’s own economic slowdown, changed airline capacity, and shifting travel preferences among Chinese tourists who are exploring alternative destinations.

The United States has emerged as a stronger market for both countries. American visitor numbers to Australia are above pre-pandemic levels, driven partly by favorable exchange rates and strong US economic conditions. Americans are staying longer and spending more than pre-pandemic, partially offsetting losses from other markets.

European visitors are recovering but remain below previous levels, constrained by limited airline capacity on long-haul routes. Several airlines that previously flew to Australia and New Zealand haven’t resumed services or operate reduced frequencies. This capacity constraint keeps airfares elevated and limits visitor growth.

Regional markets within Asia show varied recovery. Japan and South Korea are strong for both countries. Southeast Asian markets are recovering well. India is showing growth above pre-pandemic levels, particularly for Australia. This diversification of source markets may reduce vulnerability to disruption in any single market.

Visitor spending patterns have shifted. Average spend per visitor has increased significantly in nominal terms, though whether real spending (adjusted for inflation) has increased is less clear. Premium experiences—high-end accommodation, fine dining, guided experiences—are selling strongly. Budget tourism has struggled more, with backpacker and working holiday visitor numbers still below previous levels.

The working holiday maker segment hasn’t fully recovered in either country. These visitors traditionally filled seasonal hospitality and agricultural jobs while spending extended periods traveling. Current numbers are around 70-75% of pre-pandemic levels. This labor shortage has forced businesses to raise wages or reduce service offerings.

Domestic tourism surged during border closures and remains elevated above pre-pandemic baselines. Australians and New Zealanders rediscovered domestic destinations during COVID and many have continued domestic travel even as international options reopened. This partially offset international visitor losses for tourism operators but at different price points and spending patterns.

Regional dispersal shows interesting changes. Pre-pandemic, international visitors concentrated heavily in gateway cities—Sydney, Melbourne, Auckland. Recent patterns show more dispersal to regional areas. This reflects both capacity constraints in city accommodation (driving higher prices) and marketing efforts to promote regional experiences. Whether this pattern persists as capacity recovers remains to be seen.

Length of stay has generally decreased. The average international visitor is staying slightly fewer nights than pre-pandemic, possibly due to higher costs or changed vacation patterns. Shorter trips with higher daily spending characterize the current visitor profile.

Cruise tourism has recovered strongly for Australia, with passenger numbers approaching previous levels. This reflects both pent-up demand and cruise lines deploying ships to Australian waters. New Zealand’s cruise sector is recovering but faces more local opposition in some ports around environmental and overcrowding concerns.

Business travel remains below pre-pandemic levels for both countries. Video conferencing technology that became ubiquitous during COVID continues to substitute for some business travel. Conferences and events are recovering but many operate in hybrid formats reducing international attendance. This segment was historically high-value, so its partial loss impacts total tourism revenue.

Education-related travel (international students) has recovered strongly, though it’s often categorized separately from tourism statistics. Students contribute significantly to visitor economy through living expenses, travel within country, and visitors from family and friends.

Tourism employment hasn’t fully recovered despite visitor numbers approaching previous levels. Labor shortages remain acute in hospitality and tourism sectors. Many workers who left the industry during COVID haven’t returned, finding employment in other sectors. This constrains tourism businesses’ ability to service demand and creates upward wage pressure.

Infrastructure gaps are becoming more apparent. Airport capacity constraints, particularly in Melbourne and Sydney, are limiting growth. Accommodation supply in popular regional areas hasn’t kept pace with demand. These bottlenecks prevent full recovery and may require years of investment to address.

Environmental and social license concerns are rising. Overtourism debates that emerged pre-pandemic have returned with greater intensity in popular destinations. Local communities in places like Byron Bay, Queenstown, and the Whitsundays are questioning whether current tourism levels are sustainable. This creates political pressure for restrictions or taxes that could impact growth.

Climate change is affecting tourism patterns and infrastructure. Coral bleaching on the Great Barrier Reef impacts one of Australia’s premier tourism attractions. Extreme weather events disrupt tourism operations. Some businesses are adapting offerings to account for changed conditions, while others face existential questions about long-term viability.

Looking forward, most forecasts suggest continued recovery toward pre-pandemic visitor numbers by 2026-2027. Whether total spending returns to previous levels depends on mix of visitors, length of stay, and economic conditions in source markets. The composition will likely remain shifted toward regional Asian markets, the US, and domestic tourism, with Chinese visitors recovering more slowly.

For tourism businesses, the current environment requires adapting to labor constraints, higher costs, and shifted visitor profiles. The businesses thriving are those offering premium experiences, using technology to improve efficiency, and diversifying revenue streams. Those relying on volume-based budget tourism continue to face challenges.

Tourism remains economically significant for both countries—contributing roughly 3% of GDP in normal times—but the sector has learned painful lessons about vulnerability to disruption. Diversification of source markets and greater resilience to shocks are now explicit strategy elements rather than assumed stability.