Nearly a Million Tourists Visited Australia in a Single Month

Australia recorded 943,220 short-term tourist visits in February, up 19.7% on last year and above the pre-COVID benchmark for the first time. The number tops the previous February record of 927,240 set in 2019, the last full summer before border closures.

These are holidaymakers and overseas travellers spending money on accommodation, restaurants, tours, car hire, and retail. The broader tourism economy is now worth over $213 billion annually and sustains a record number of tourism-related jobs across the country.

Hospitality businesses are feeling it

For operators in tourism and hospitality, the data confirms what many have been seeing for months. Booking volumes are up. Occupancy is rising. Restaurants in tourist areas are turning tables again.

But the capacity picture is uneven. Labour shortages in hospitality remain acute, particularly in regional areas. And businesses that pulled back investment during the slow years are now trying to meet demand with the same fit-outs, vehicles, and equipment they had three years ago.

The growth is not equally distributed either. Western Australia and Queensland are seeing the strongest numbers, driven by direct flights from Southeast Asia and renewed interest from European travellers. South Australia is punching above its weight off a smaller base.

What is driving the recovery

A few things are working together. More international flights are operating to Australian airports than at any point since early 2020. The weaker US dollar has made Australia more affordable for American and European tourists. And events like the Melbourne Grand Prix, Vivid Sydney, and a packed summer sport calendar continue to draw visitors who stay longer and spend more.

Guest satisfaction is also playing a role. Australian tourism businesses scored a Global Review Index of 89.7%, well above the global average. Good reviews compound. Visitors recommend Australia to their networks, and return trips are increasing.

What to do if you run a tourism or hospitality business

If you are turning away bookings, struggling with kitchen capacity, or running vehicles that should have been replaced two years ago, the demand data suggests this is not a temporary bounce. Tourism spending has returned to its structural trend.

The practical move is to audit your capacity against your current demand. Not where demand was in 2023, but where it is now. A cafe that cannot seat enough covers during peak season is leaving real revenue on the table. A tour operator running a tired fleet is losing repeat customers to operators who invested earlier.

Map where the bottleneck sits. If it is a fit-out, a vehicle, or a piece of equipment, that is a solvable problem. If it is staffing, the answer may be different, but even there, better equipment and systems can offset headcount gaps.

The businesses that will benefit most from this recovery are the ones that match their capacity to the opportunity while the demand is here.

This article is general information only and is not financial advice.