Chinese Tourism to Australia: A Slow Recovery with Lingering Challenges
Chinese tourist arrivals to Australia remain significantly below pre-pandemic figures, with an uncertain recovery outlook for 2026. While China stands as Australia's second-largest source market by visitor numbers and the most valuable by expenditure, current levels do not match the peak of over 1.4 million arrivals and $12.4 billion in spending recorded in 2019.
Current Trends and Economic Factors
In the 12 months leading up to November of last year, over 1 million Chinese visitors arrived in Australia. Official data also indicates that Chinese visitors spent $9.2 billion in Australia over the 12 months to March 2025.
Experts attribute the slower recovery to broader economic pressures in China, which are impacting outbound travel demand.
Professor Huang Songshan of Edith Cowan University notes that declining wealth perception among Chinese citizens may lead them to reduce or forgo international travel. Additionally, Chinese travelers are increasingly favoring shorter-haul destinations over long-haul options like Australia due to travel time and cost.
China's economic growth slowed in the latter half of last year, with GDP growth easing to 4.5 percent in the fourth quarter.
Industry Outlook and Challenges
Despite the current challenges, Tourism Australia maintains an optimistic perspective. Managing Director Robin Mack highlighted China's importance as Australia's second-largest source market and largest in terms of visitor expenditure.
Tourism Research Australia predicts China will be one of Australia's fastest-growing inbound markets from 2025 to 2030, with an average annual growth rate of 7.3 percent.
However, many industry observers believe it will take years to reach pre-pandemic levels for Chinese tourism, a recovery pace slower than that seen in other markets such as South Korea.
Seasonal events like the Australian Open and the Lunar New Year holiday continue to boost Chinese arrivals, particularly in January and February. The recent Australian Open saw an unexpected surge in interest due to the appearance of Mandopop star Jay Chou.
Government Policy and Promotion
Professor Huang also pointed to Chinese domestic economic priorities and government policies influencing travel. Softened household income expectations due to property market pressures are causing middle-class families to cut non-essential spending, including long-haul overseas trips.
Furthermore, the Chinese government is actively encouraging domestic travel to stimulate its internal economy. Conversely, China has implemented visa-free entry for citizens of various countries, including Australia, to attract inbound tourism spending.
Tourism Australia is continuing its promotional efforts in China, including the "Come and Say G'day" campaign launched last year, to rebuild demand in this crucial market.