Australians are heading overseas in record numbers, driven by a phenomenon dubbed “revenge travel”, as they make up for lost time following the COVID-19 border restrictions.

Despite the ongoing cost-of-living crisis, international trips have now largely surged beyond pre-pandemic levels, as Aussies set out to reconnect with the world.

Recent data from the Australian Bureau of Statistics (ABS) showed more than 11 million outbound trips were taken in the year to June, a 32 per cent increase on the previous year.

Dean Long is the CEO of Australian Travel Industry, the peak body representing Australian travel agents and tour operators.

He said holidays accounted for the bulk of the trips overseas with destinations like Bali and Japan booming, thanks to favourable exchange rates and affordable travel options.

“It’s being strongly powered by those that are in the older demographic and also those in the younger demographic, looking to have shorter, single-hop holidays in the world.”

Despite the cost-of-living crisis, Mr Long said Australians were still prioritising travel.

“It’s one of the absolutely fascinating parts of the Australian psyche and one that economists struggle to understand about our population,” Mr Long said.

“Travel is an essential part of who we are and even through tough times, we still maintain a very high share of wallet spend on international and domestic travel.

“Travel is not a discretionary spending item, it’s critical to mental health and reconnecting with families and part of who we are.”

ABS figures show Indonesia was the top travel destination for Australians in the 12 months to June, with 1.5 million trips recorded — nearly 36 per cent higher than the previous year.

New Zealand was the second most visited destination with 1.3 million trips, the USA was the third most visited destination with 714,300 trips, Japan was the fourth with a 126 per cent increase in visitors in the 12 months to June.

“Japan is just going incredibly well at the moment because of the currency exchange and we’re also seeing the re-emergence of Bali in Indonesia as a must go-to holiday destination,” Mr Long said.

“That’s coming at the expense of some of those higher cost destinations, like Fiji, which were the first to reopen.”

‘I always have to have a holiday’

Laclan Pou and his partner Ebony Tayer recently returned from a 12-day trip to Japan, where they explored Osaka, Kyoto and Tokyo.

He said they managed their budget by setting aside a specific amount each week into a travel fund, separate from their savings and had been on the lookout for cheap airfares.

In the end, they were able to book a return trip from Cairns to Japan for $1,000.

“We’re quite smart with our money. We only buy what we have to and save for travel,” Mr Pou said.

He said they aim for at least one international trip annually, with their future travel plans to include Thailand, the Philippines, and New Zealand.

“You’ve got to work to live, not live to work.”

International visitors lag

While Australians are again travelling with gusto, the inbound tourism market is still recovering.

Australian Tourism Export Council managing director Peter Shelley said international visitation was about 80 per cent of pre-COVID levels.

“While record numbers of Aussies are spending their money abroad, that spending is not being balanced out with international holidaymakers spending here,” Mr Shelley said.

He emphasised the need for Australia to double down on efforts to attract international visitors, citing global economic challenges and competition from other destinations.

“As a long-haul destination, we have always known it can take more to convince visitors to commit to an Australian holiday,” he said.

“We are hopeful the upcoming peak season will deliver stronger recovery.”

Tourism expert Professor Gui Lohmann from RMIT University said Italy and Greece were also popular destinations, particularly among older Australians.

“There’s a significant proportion of society, that have paid off their own houses, they’re less impacted by interest rates and can afford to travel overseas,” Professor Lohmann said.

He said Australia was a nation of adventurers, eager to explore the world, and that the country’s multicultural background and global family connections encouraged residents to travel.

“Australians are comfortable with different cultures, and we tend to feel comfortable exploring other countries and cultures,” Professor Lohmann said.

“We are one of the most successful multicultural countries, and that reflects the way we travel overseas.”

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