Economic value of tourism

Victoria's Visitor Economy

Total tourism expenditure in Victoria was $16.5 billion in the year ending March 2022, representing an increase of 63 per cent or up $6.7 billion compared to the year ending March 2021 during a period of low activity due to COVID-19. However, total tourism spend in Victoria was $13.5 billion below the pre-COVID-19 period (year ending March 2019), noting a decline of 45 per cent.

Domestic expenditure (daytrip and overnight combined) was $15.4 billion in the year ending March 2022, which comprised 93 per cent of total tourism expenditure in Victoria, given the restricted intake of international visitors. This included domestic overnight spend ($10.6 billion) and domestic daytrip spend ($4.8 billion), which have both experienced strong increases year-on-year of 64 per cent and 46 per cent respectively from a low base in 2021 due to extended restrictions during the period.

International overnight spend in Victoria was $1.1 billion in the year ending March 2022, representing a substantial decline of 87 per cent compared to the pre-COVID-19 March 2019 result (or down $7.4 billion).

Total visitors to and within Victoria increased by 24 per cent from the year ending March 2021 to 57.5 million in the year ending March 2022 (up 11.0 million visitors year-on-year). However, total visitors remained well below the pre-COVID-19 year ending March 2019 (-37 per cent or down 33.1 million visitors).

Total visitor nights spent in Victoria were 67.7 million in the year ending March 2022, representing an increase of 44 per cent year-on-year.

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

Figure 1. Victoria's Visitor Economy – year ending March 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 57.5 million linked to a bed symbol representing total visitor nights of 67.7 million linking a stack of coins symbol for total tourism spend of $16.5 billion. The graphic also illustrates the sub-components of tourism spend of $1.1 billion in international overnight spend, $4.8 billion in domestic daytrip spend and $10.6 billion in domestic overnight spend. Together this equals to total spend as described in the above text representing a decline of $13.5 billion dollars and a decrease of 45 per cent from the year ending March 2019 (pre-COVID-19) to year ending March 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.