Australia’s recovery is progressing but real growth needs support
Recovery in the tourism sector is happening, but it is slow, uneven and heavily concentrated, writes ATEC's Peter Shelley.
As we head into 2026, Australia’s tourism recovery continues to strengthen, but the trajectory remains steadier than many had hoped.
The industry is not in decline, but it is also not yet on the kind of accelerated growth path needed to regain market share in an increasingly competitive global environment. The sentiment across ATEC member forums over the past six months is remarkably consistent—recovery is happening, but it is slow, uneven and heavily concentrated in a handful of markets and regions.
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The even, rather than strong, growth profile reflects the reality that Australia is rebuilding in the face of structural barriers that didn’t exist ten years ago. International travel patterns have shifted, major competitor destinations have returned aggressively to market, and the cost pressures facing both travellers and tourism businesses are significantly higher. For Australia to compete, we must be highly visible, offer affordable access and be capable of delivering on a dream.
One of the most significant challenges sits with Tourism Australia (TA). The expense of global media marketing and its complexity has transformed the cost of destination marketing. In many of our key markets, particularly across North America, Europe and emerging Asia, the cost of achieving the same reach and frequency that Australia enjoyed a decade ago has increased markedly. Maintaining visibility, let alone growing it, now requires a scale of investment that simply hasn’t kept pace with government investment.
TA is still delivering exceptional work but is having to try and do more in more markets, using dollars that have less impact each year.
The same challenge is being felt across industry businesses. For operators and ITOs, the cost of trade engagement, attendance at global trade events, marketing and reconnecting with distribution networks has risen sharply for all businesses, particularly in regional Australia, finding the cost of re-entering global distribution almost prohibitive. Without sustained trade activity, Australia loses not only immediate bookings but long-term relationships that underpin yield, dispersal and inbound tourism growth.
Related AccomNews article: ATEC Summer Pulse Check shows inbound tourism stabilising
Encouragingly, demand signals are improving with forward bookings strengthening and sentiment growing, while the recovery of inbound aviation capacity is gradually expanding competitiveness. There is every indication that Australia’s brand remains strong globally, but that momentum alone will not carry us into a new phase of growth.
This is where modest, strategic investment can shift the trajectory. Ensuring TA can maintain competitive visibility; reducing friction in the visa system; rebuilding distribution channels; and supporting industry capability, including the growth of Aboriginal and Torres Strait Islander tourism, are all critical components of a modern export tourism strategy. These measures are not large, but they can be powerful.
The recovery to date shows what the industry can achieve when returning from a devastating setback. With the support of settings that fully engage growth, Australia can move from slow recovery to strong, sustainable expansion, which we know delivers benefits not just for tourism businesses but for the many regional community economies that rely on them.
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