The latest data released by Tourism Research Australia today shows that domestic and international tourists spent a record $35.3 billion in Queensland in the year ended December 2024.

Record visitation numbers also saw Queensland welcoming 26.2 million Australian travellers, with Queensland visitation growth rates of 4.8 per cent sitting above the national visitation average rise of 2.1 per cent.

Queensland Tourism Industry Council (QTIC) CEO Natassia Wheeler highlights that the latest data reveals a tale of two realities for Queensland’s tourism industry, however. While total visitor spend and visitation rates have reached record numbers, these figures do not tell the full story.

“While the drive to travel remains strong, Australians are choosing to save money by holidaying intrastate or opting for cheaper, short-haul international trips,” says Ms Wheeler.

“Domestic holiday visitation is down, international visitor numbers have not returned to pre-pandemic levels, and forward occupancy data is deeply concerning across key markets.

“Queensland was previously the number one domestic holiday destination for Victoria and New South Wales. But cost of living pressures are forcing travellers to rethink spending priorities and we’re seeing this vital holiday market ease substantially”.

Reduced discretionary income, rising operating costs, shifting economic conditions and intensifying global competition are also combining to put significant downward pressure on tourism operators.

“The margins for business success are shrinking as cost-related challenges become a growing obstacle for our business. High insurance costs, inflation and operating expenses are putting a strain on business,” says Craig Squire, Director of Ochre Restaurant and Catering in Cairns.

“The costs of doing business have never been higher, with growing operational expenses squeezing profitability – forcing many operators to rethink their business strategies and whether they can keep their doors open”.

The tourism industry peak body is calling on governments to prioritise investment in destination marketing to better compete in a saturated market for the all-important international dollar.

“Behind the headlines lies a sobering truth – our visitor numbers are under significant pressure. Our tourism industry is facing one of its most challenging periods,” says Ms Wheeler.

“Now is the time for decisive action. QTIC has called on the Federal Government to fast-track support to address insurance affordability and introduce immediate stimulus measures to rebuild consumer confidence.

“Tourism in Queensland is a $35 billion economic engine. It is not a ‘nice-to-have’ – it is a must-have for our state’s prosperity.

“It’s time to stand behind our tourism operators – they are the backbone of regional economies and the future of Queensland’s economic growth.

“Despite current challenges, there is enormous opportunity ahead. With plans for the Brisbane 2032 Olympic and Paralympic Games beginning to take shape across the state, Queensland is uniquely positioned to showcase our world-class destinations to a global audience. In parallel, we look forward to the release of the Destination 2045 strategy – which we hope will provide a strong, coordinated roadmap for long-term growth, resilience, and renewed investment in the visitor economy.”

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