Economic value of tourism

Victoria's Visitor Economy

Total tourism expenditure in Victoria was $20.7 billion in the year ending June 2022, representing an increase of 62 per cent or up $7.9 billion compared to the year ending June 2021 which had limited travel due to restrictions.

This result reflects growing positive signs of recovery driven by a strong performance in intrastate overnight spend which has fully recovered and is just above the pre-COVID-19 June 2019 level (up one per cent).

Overall total tourism spend was back to 67 per cent of the pre-pandemic result (or $10.3 billion below the year ending June 2019).

Tourism spend has recorded a particularly strong rebound compared to visitors with inflationary factors playing a key role in influencing these results.

Domestic spend and visitors

Total domestic spend reached $18.1 billion noting growth of 43 per cent year-on-year and returning to 81 per cent of the pre-COVID-19 year ending June 2019 result.

This included $12.7 billion in domestic overnight spend and $5.4 billion in domestic daytrip spend.

In comparison, total domestic visitors are back to 69 per cent of the pre-COVID-19 level, noting 16 per cent year-on-year growth.

International spend and visitors

International overnight expenditure in Victoria was $2.5 billion in the year ending June 2022, a decline of $6.1 billion or down 71 per cent compared to the pre-COVID-19 year ending June 2019.

However, spend was over $2.4 billion higher than the same time last year when international borders were largely closed (up from $108 million).

Total spend and visitors

Total visitors to and within Victoria increased at a slower pace than spend, up 16 per cent from the year ending June 2021 to 62.5 million or up 8.8 million visitors.

Visitors from all categories were below the year ending June 2019 result, with the lowest rate of decline noted in domestic intrastate overnight visitors (-22 per cent).

Total visitors were back to 67 per cent of the pre-COVID-19 year ending June 2019 (down 31.1 million visitors).

The infographic below shows results taken from the International and National Visitor Surveys for the year ending June 2022, published by Tourism Research Australia in September 2022.

Figure 1. Victoria's Visitor Economy – year ending June 2022

Infographic 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 62.5 million linked to a bed symbol representing total visitor nights of 86.4 million linking a stack of coins symbol for total tourism spend of $20.7 billion. The graphic also illustrates the sub-components of tourism spend of $2.5 billion in international overnight spend, $5.4 billion in domestic daytrip spend and $12.7 billion in domestic overnight spend. Together this equals to total spend as described in the above text representing a decline of $10.3 billion dollars and a decrease of 33 per cent from the year ending June 2019 (pre-COVID-19) to year ending June 2022

Tourism is an important economic driver for Victoria. In 2020-21 tourism in Victoria was estimated to be worth $10.7 billion to the economy in Gross State Product and generated approximately 120,000 jobs.1

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

1. Source: 2020-21 State Tourism Satellite Account, Tourism Research Australia, released May 2022.