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Australia this year, marking a substantial 16 percent increase
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As a result of this growth, India has climbed from the seventh largest market for Australian tourism to the fourth largest in terms of arrivals, and from the sixth to the fifth position in terms of spending
Indian tourists have provided a significant boost to Australia’s tourism sector, becoming the first market to recover to pre-Covid levels in terms of both arrivals and spending. In 2023, Australia welcomed 375,000 visitors from India, a 2 percent increase compared to 2019’s 356,000 arrivals, Nishant Kashikar, Country Manager, India and Gulf, Tourism Australia, told Moneycontrol.
The spending by Indian tourists during their trips to Australia has also seen a remarkable surge. Compared to the pre-Covid levels of $1.8 billion in 2019, Indian tourists spent approximately $2 billion in Australia this year, marking a substantial 16 percent increase. As a result of this growth, India has climbed from the seventh largest market for Australian tourism to the fourth largest in terms of arrivals, and from the sixth to the fifth position in terms of spending.
Nishant Kashikar, the Country Manager for India and Gulf at Tourism Australia, attributed India’s success as a significant source market for Australia to the increase in aviation capacity. The number of direct flights from India to Australia has tripled since pre-Covid times, rising from seven flights per week to 22 flights per week. This increase in air connectivity has been a crucial factor in driving India’s tourism growth to Australia.
The future looks promising for Australia’s tourism industry as well. The current schedule of 22 flights per week is expected to further rise to 25 flights per week due to Qantas, an Australian airline, increasing its capacity from Delhi and Bengaluru. Additionally, Air India and Indigo’s record orders for flights to Australia indicate continued growth in aviation capacity.
“India’s growing economy and the increasing propensity to travel among Indians will continue to drive the growth momentum in 2023. Moreover, the world’s confidence in India as a driver of various tourism segments further bolsters the prospects of continued growth in the Australian tourism sector.”
— Nishant Kashikar, the Country Manager for India and Gulf at Tourism Australia
Moreover, the post-Covid phase has seen a surge in MICE (Meetings, incentives, conferences, and exhibitions) travel from India to Australia. Business travel has increased notably following Prime Minister Narendra Modi’s visit to Australia, along with the signing of the migration and mobility agreement between the two countries. This agreement grants business travelers eligibility for five-year multiple visitations to Australia, further stimulating travel between the nations.
Indian tourists have also shown an increase in per capita spending while visiting Australia. The per capita spend has risen by 55 percent, from $5,000 pre-Covid to $6,000 currently. Holiday tourists are now spending $6,000, up from $4,000, and on-ground spend has seen a similar increase, going from $2,000 to $4,200. This overall rise in spending has been attributed to both holiday and MICE travelers.
With the bilateral ties between India and Australia strengthening, the outlook for future growth in tourism remains positive. Nishant Kashikar believes that India’s growing economy and the increasing propensity to travel among Indians will continue to drive the growth momentum in 2023. Moreover, the world’s confidence in India as a driver of various tourism segments further bolsters the prospects of continued growth in the Australian tourism sector.
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