Australia’s tourism industry is seeing mixed results in arrivals from China this Lunar New Year season, with demand not equal across businesses.
There is also a growing shift towards FITs and smaller premium groups, while larger group travel – historically driven by the Approved Destination Scheme (ADS) – remains soft.
“Given the market remains well below pre-pandemic levels, revitalising the ADS is critical to driving a stronger and more sustainable pipeline of Chinese visitors to Australia. A modernised ADS could better align with the changing travel preferences of the Chinese traveller, ensuring Australia remains competitive as this market continues to recover,” said Peter Shelley, managing director of the Australian Tourism Export Council (ATEC).
To drive recovery, ATEC is urging targeted government investment in the China market through its 2025 pre-budget submission. Key priorities include revitalising group travel from China through a modernised ADS, trade missions and regional itineraries; co-funded grants for inbound tour operators to rebuild global distribution networks; support for regional and small businesses including co-funded trade opportunities; sustained Tourism Australia funding to strengthen promotion in high-growth markets like China.
China remains Australia’s second-largest inbound market although recovery was still below pre-pandemic levels in FY2023-24 (July 2023 – June 2024). The number of inbound visitors from China is not expected to fully recover until 2027.
