Economic value of tourism

Victoria's Visitor Economy

Total tourism expenditure in Victoria was $13.0 billion in the year ending December 2020, representing a significant decline of 60 per cent or a loss of $19.5 billion compared to the year ending December 2019 due to the dual crises of bushfires and coronavirus (COVID-19), which have had a devastating impact on the visitor economy in Victoria.

Domestic expenditure (daytrip and overnight combined) represented $10.5 billion or 81 per cent of total tourism expenditure in Victoria in the year ending December 2020. This included domestic overnight spend ($7.0 billion) and domestic daytrip spend ($3.5 billion), which have both experienced large declines year-on-year of 59 per cent and 47 per cent respectively.

International overnight spend in Victoria was $2.5 billion in the year ending December 2020, representing a year-on-year decline of 72 per cent. The decline in international spending can be attributed to the coronavirus (COVID-19) related travel restrictions, which have halted the flow of international visitors into the country.

Total visitors to and within Victoria decreased by 51 per cent from the year ending December 2019 to 49.7 million in the year ending December 2020, representing a loss of 50.7 million visitors.

Total visitor nights spent in Victoria were 65.8 million in the year ending December 2020, representing a decline of 58 per cent year-on-year.

The infographic below shows results taken from the International and National Visitor Surveys for the year ending December 2020, published by Tourism Research Australia in March 2021.

Figure 1. Victoria's Visitor Economy – latest results

Info graphic explaining the chain of figures previously described on this page under the heading Victoria's Visitor Economy. The graphic uses a man symbol representing total visitors of 49.7 million linked to a bed symbol representing total visitor nights of 65.8 million linking a stack of coins symbol for total tourism spend of $13.0 billion. The graphic also illustrates the sub-components of tourism spend of $2.5 billion in international overnight spend, $3.5 billion in domestic daytrip spend and $7.0 billion in domestic overnight spend. Together this equals to total spend as described in the above text representing a decline of $19.5 billion dollars and a decrease of 60 per cent from the year ending December 2019 to year ending December 2020.

Tourism is an important economic driver for Victoria. In 2019-20 tourism in Victoria was estimated to be worth $23.4 billion to the economy in Gross State Product and generated approximately 232,000 jobs.1

Further detail about Victoria's visitor economy is available on the Tourism Industry Resources website.

1. Source: 2019-20 State Tourism Satellite Account, Tourism Research Australia, released March 2021.

Page last updated: 27 April 2021