Economic value of tourism

Victoria's Visitor Economy

Total tourism expenditure in Victoria was $12.8 billion in the year ending June 2021, representing a significant decline of 50 per cent or a loss of $12.7 billion compared to the year ending June 2020 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 $12.6 billion or 99 per cent of total tourism expenditure in Victoria in the year ending June 2021, given the restricted intake of international visitors. This included domestic overnight spend ($8.9 billion) and domestic daytrip spend ($3.8 billion), which have both experienced large declines year-on-year of 34 per cent and 30 per cent respectively.

International overnight spend in Victoria was $111 million  in the year ending June 2021, representing a year-on-year decline of 98 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 33 per cent from the year ending June 2020 to 53.7 million in the year ending June 2021, representing a loss of 26.7 million visitors.

Total visitor nights spent in Victoria were 55.2 million in the year ending June 2021, representing a decline of 55 per cent year-on-year.

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

Figure 1. Victoria's Visitor Economy – year ending June 2021

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 53.7 million linked to a bed symbol representing total visitor nights of 55.2 million linking a stack of coins symbol for total tourism spend of $12.8 billion. The graphic also illustrates the sub-components of tourism spend of $111 million in international overnight spend, $3.8 billion in domestic daytrip spend and $8.9 billion in domestic overnight spend. Together this equals to total spend as described in the above text representing a decline of $12.7 billion dollars and a decrease of 50 per cent from the year ending June 2020 to year ending June 2021.

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.