Tourism Australia’s 2035 Strategy Sets The Stage For A New Era Of High-Value Travel

Australia is setting its sights on the next decade of international tourism growth with the launch of Tourism 2035, Tourism Australia’s new 10-year strategy designed to strengthen the country’s position in an increasingly competitive global travel market.

The strategy aims to grow overnight expenditure from high-yield international travellers to between $61 billion and $69 billion by 2035. That represents a significant increase from the $33 billion generated by this important visitor segment over the past year.

For Australia’s tourism and accommodation industries, the strategy represents more than simply attracting additional visitors. The focus is increasingly on travellers who stay longer, spend more and explore a broader range of Australian destinations.

Competing for the High-Value Traveller

Competition for international travellers continues to intensify as destinations around the world invest heavily in tourism marketing, aviation connections, major events and premium experiences.

Tourism 2035 identifies ten global factors expected to influence Australian tourism over the coming decade. These include stronger competition for high-value travellers, continued growth from Asian markets, changes in how people research and purchase travel, the future of aviation, global uncertainty and increasing demand for sustainable experiences.

Australia enters this period from a position of strength. International visitors generated $57 billion in total overnight expenditure over the past year, including $33 billion attributed to the high-yield travellers targeted by Tourism Australia.

However, maintaining growth will require the industry to respond quickly to changing expectations.

Opportunities for Melbourne’s Accommodation Sector

Melbourne is particularly well positioned to benefit from a strategy focused on high-value international visitors. The city combines major sporting events, arts and culture, international education, dining, business events and easy access to some of Victoria’s best-known regional destinations.

As international visitation grows, accommodation choices will also need to reflect the different ways people travel. Visitors coming to Melbourne for business assignments, conferences, relocation, extended holidays or major events may require more than a traditional short hotel stay. Professionally managed serviced apartments in Melbourne CBD can provide a practical option for these guests, offering central locations alongside facilities such as kitchens, living spaces and laundry amenities that can make longer stays more comfortable.

AI Will Influence How Travellers Choose Australia

One of the most interesting elements of Tourism 2035 is its recognition of artificial intelligence as an increasingly important part of travel discovery.

Over the next three years, Tourism Australia plans to focus on ensuring the country is recommended by AI-powered search and discovery tools. This reflects a fundamental change in the way potential visitors may plan their trips.

Instead of conducting numerous individual searches for destinations, attractions, accommodation and transport, travellers can increasingly use AI platforms to create personalised recommendations and itineraries.

For tourism and accommodation businesses, this makes accurate and detailed digital information increasingly important. Websites, property descriptions, destination guides, images and other online content must clearly communicate what a business offers.

Showing Visitors More of Australia

Another major priority is encouraging travellers to look beyond Australia's internationally recognised landmarks.

Tourism Australia wants to showcase a broader range of experiences and give international visitors more reasons to explore different destinations.

For Melbourne, this could create opportunities for travellers to use the city as a base while discovering more of Victoria. Visitors can combine city experiences with trips to destinations such as the Great Ocean Road, Yarra Valley, Mornington Peninsula and regional Victoria.

Longer itineraries can also create opportunities for accommodation providers, particularly when visitors want the convenience and comfort of a more residential-style base during their time in Australia.

Major Events Will Drive Future Demand

Major international events are another central element of the strategy.

Tourism Australia has identified global sporting events, including the Brisbane 2032 Olympic and Paralympic Games, as opportunities to promote Australia internationally and encourage visitors to explore beyond the host destination.

This approach is particularly relevant to Melbourne, which already has an established reputation for major sporting and cultural events.

Events such as the Australian Open, Formula 1 Australian Grand Prix and major international concerts regularly attract interstate and overseas visitors. These events can create strong periods of accommodation demand while introducing new travellers to the city.

Luxury Travel Gets an Australian Identity

Tourism 2035 will also place greater emphasis on developing Australia's luxury tourism proposition.

Rather than simply competing through traditional definitions of luxury, Australia has an opportunity to highlight premium experiences connected with nature, space, food, culture and authentic local experiences.

High-value travellers may also seek greater flexibility and privacy in their accommodation. Spacious apartments and extended-stay accommodation can complement premium travel experiences, particularly for executives, relocating professionals and visitors spending several weeks in Australia.

Sustainable Tourism Remains Important

Sustainability is also expected to influence travel decisions over the next decade.

Tourism Australia has identified the rise of responsible travel and the desire for nature-based experiences among the trends shaping international tourism.

This creates an opportunity for tourism operators to demonstrate how they are reducing environmental impacts while still delivering high-quality visitor experiences.

For accommodation providers, sustainability can involve everything from energy efficiency and waste reduction to encouraging longer stays and helping guests experience destinations more like local residents.

A Decade of Opportunity for Australian Tourism

Tourism 2035 establishes an ambitious direction for the Australian visitor economy.

Reaching up to $69 billion in expenditure from high-yield international travellers will require collaboration across tourism, accommodation, aviation, events and technology.

For accommodation providers, the changing market creates significant opportunities. Travellers are searching differently, expecting more personalised experiences and increasingly combining leisure, business and extended stays.

As Australia works to become the destination international travellers not only dream about but ultimately choose, providing flexible, comfortable and professionally managed accommodation will remain an important part of the visitor experience.

The next decade will therefore be about more than bringing additional travellers to Australia. It will be about encouraging visitors to stay longer, explore further and experience more of what the country has to offer.