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International tourism to NSW sees a remarkable 82% recovery, with English-speaking markets leading the way. Dining and entertainment thrive, and longer stays for visiting friends and relatives become the norm.
In a welcome sign of recovery for the travel and hospitality industry in New South Wales (NSW), Australia, international tourist arrivals have surged, reaching 82% of the August 2019 levels. This remarkable rebound can be attributed to several factors, including the Sydney WorldPride 2023 event held in February, which saw a significant surge in international visits. While some markets have shown robust recovery, others are still on the path to pre-pandemic levels. The City Insight Reports delve into the recent trends in international tourism to NSW, focusing on visitor demographics, spending patterns, and the evolving purposes of travel.
Visitor Demographics and Recovery
English-Speaking Markets Lead the Way
Visitors from English-speaking countries, including New Zealand, the UK, and the US, have made impressive recoveries, reaching 95% of pre-pandemic levels. Their familiarity with the language and cultural affinity with Australia have contributed to this resurgence.
Growing Asian Markets
In contrast, visitors from major Asian markets, particularly China and Japan, are still on the path to full recovery, currently standing at 50% and 70% of pre-pandemic levels, respectively. Factors like travel restrictions and quarantine requirements continue to impact their return.
Spending Patterns
Dining and Entertainment Thrive
International visitors have demonstrated a keen interest in dining and entertainment, with spending in this category reaching 111% of pre-pandemic levels. In August alone, they contributed $47 million to this sector, marking the second-highest monthly spend since the pandemic began.
Local Spend Bounces Back
The overall local spend from international visitors is recovering impressively, accounting for $125 million in August, representing 84% of pre-pandemic levels. This excludes travel expenses paid before arriving in Australia, highlighting the significant impact of on-ground experiences.
Evolving Travel Purposes
Longer Stays
One noticeable trend is the increase in the average length of stay for international visitors. In 2023, tourists spent an average of 13.2 nights in Australia, three nights longer than in 2019. This extended duration can be attributed to shifting travel purposes.
Visiting Friends and Relatives (VFR) on the Rise
In 2023, a significant proportion (23%) of international travelers cited visiting friends and relatives as their primary motivation for travel, compared to 15% in 2019. The VFR segment has rebounded remarkably, standing at 120% of pre-pandemic levels.
Decline in Group Tours
Interestingly, the percentage of international visitors arriving in group tours has substantially decreased in 2023, dropping to 7.4% from 16.9% in 2019. This shift can be attributed to the absence of Asian tourists, who traditionally favor group tours, and the prevalence of VFR travelers who often arrive independently.
The recovery of international tourism in NSW is a positive sign for the travel and hospitality industry. While some markets have rebounded strongly, others are gradually catching up. The changing travel purposes and spending patterns of international visitors reflect the evolving landscape of tourism in the region.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
