Plenty of demand from India, but conversions are a challenge: Tourism Australia

Australia’s tourism sector is seeing a strong rebound from India, with travel numbers now exceeding pre-covid levels. Phillipa Harrison, managing director of Tourism Australia, who is on a visit to India, told Mint the challenge isn’t attracting interest but converting it into visits.

“India isn’t a demand problem, it’s a conversion challenge,” she said, noting that while interest in Australia remains high, smoother travel options—such as more direct flights—could drive even greater numbers. Recent trade agreements between the two countries are also expected to bolster tourism, adding momentum to an already robust flow of Indian visitors.

Harrison noted that recent trade agreements between India and Australia are likely to make travel easier. India is now Australia’s fifth-largest tourism market, up from seventh, attracting around 4.23 lakh travellers each year. This growth, expected to continue at 10% annually, is particularly noticeable in cities such as Melbourne and Sydney. Australia’s tourism body also sees potential in India’s meetings and incentives market as companies look to Australia for group travel.

China's slow recovery

From January to November 2023, 3.13 lakh Indians visited Australia compared to 4.23 lakh Chinese. China has been Australia's largest source of tourists after New Zealand since before the pandemic, but has been recovering more slowly than other markets, with arrivals currently around 60% of pre-pandemic numbers. In 2019, 12.32 lakh  Chinese travelled to Australia, according to data from Tourism Australia. 

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Meanwhile, the number of flights from India to Australia has increased considerably, from eight a day before the pandemic to 25 a day now, and could hit 27 a day by the end of the year. Major Indian cities are the key sources of these travellers, many of whom are young families. Cricket also plays a part, with events such as the Border-Gavaskar series adding to Australia’s appeal.

Show me the money

Indian travellers are also spending more in Australia – from AU$4,800 per trip five years ago to $5,700 today – and this is expected to rise further. Harrison said Australia’s appeal extends to a range of high-yield travellers, including families and young professionals seeking unique experiences. She noted that while many Indian travellers visit Europe first, Australia remains a strong option for those seeking a long-haul destination.

“India is a market that has bounced back to pre-covid levels and is continuing to grow,” Harrison said, observing that India and South Korea are among the few markets that now exceed pre-pandemic travel levels.

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Indian outbound tourism is growing rapidly, with travellers projected to spend $18.82 billion in 2024, marking a return to pre-pandemic levels. According to a FICCI-Nangia report from September, 28.2 million Indians travelled abroad in 2023, up from 27 million in 2019. 

This growth is expected to continue, with outbound remittances forecast to rise to $1.42 billion a month in 2023-24 compared to just $400 million in 2018-19. Despite a slight reduction in spending projections from $42 billion in 2022, the sector remains on a robust growth path, with spending forecast to touch $55 billion by 2034, driven by increasing travel frequency and improved connectivity.

Ease of travel

The rise in outbound travel is supported by greater accessibility, with 50 countries offering visa-on-arrival or e-visa facilities for Indians. Middle Eastern destinations such as Dubai are popular, with more than 30% of Indian travellers opting for these short-haul locations. 

Southeast Asian countries such as Indonesia, Malaysia, and Vietnam have also gained traction thanks to relaxed visa norms and more direct flights. Travel to the US and Japan has surged as well. The number of Indians travelling abroad is expected to nearly triple to 50 million by 2030 as rising disposable incomes and a growing middle class continue to drive India’s travel boom.

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