Bali, Japan, and Vietnam: The Ultimate Travel Hotspots for Australians in 2025

Bali, Japan, and Vietnam remain top of the list as Australia’s preferred international destinations, with the latest Travel Trends Report from the Australian Travel Industry Association (ATIA) reporting a year of high tourism growth. The rapid growth in the number of seats available to Asia reflects the Australian market’s propensity to travel to locations with rich culture, natural diversity, and a surge in tourism offering diversity.

Australian outbound travel also continued its significant growth pattern for the year ending May 2025, recording an increase of 12.5 per cent to 12.21 million trips by Australians, indicating Australians’ appetite for global adventure remains strong. This expansion was most evident in Asia, where Japan, Vietnam, and China were standout destinations. Japan took the top spot, with an impressive growth rate of 32.4%, while Vietnam closely followed with 25.8%. Asia also recorded strong growth with 26.9% growth, consolidating Asia’s status as a favourite destination for Australian travellers.

Asia Still Reigns as Australia’s Favourite Travel Destination

A variety of reasons have contributed to the dramatic increase in travel to Asia. One Asia has a wide array of attractions and experiences-from timeless cultural and historical centers to up-and-coming cosmopolitan metropolises and simply breathtaking scenery–to suit any type of Australian traveler. Bali is still a key favourite for Australian tourists, given its proximity, value, luxury, and reputation as a base for wellness seekers and adventure enthusiasts. In another story of the city, Tokyo and Ho Chi Minh City are seeing continued popularity as they appear at the top of travel plans, providing Aussies with a mix of old and new and a vibrant culture.

Nina Hedges, ATIA’s Director of Compliance & Membership, noted that Asia is proving as popular as ever in Australian travel: “Asia continues to steal the spotlight as the destination of choice for Australians, with destinations such as Bali, Tokyo, and Ho Chi Minh City featuring on the itineraries of millions.

The call of destinations such as Bali, Vietnam, and Japan is also indicative of broader regional travel trends in the Asia Pacific region, where travel to and from has never been easier, nor travel experiences more within reach. This development is likely to continue, especially as countries including Vietnam and Japan invest significantly in tourism infrastructure and special experiences that target entire demographics of travelers.

Mixed results for the USA in Outbound and Inbound Markets

Asia is the big winner, but the United States still siphons off some Australian travelers, with mixed success. Visitor arrivals from Australia to the USA increased by 4.8% year on year, rising by 8.0% in May 2025 relative to May 2024. However, US inbound tourism to Australia did not experience the same growth. US visitors to Australia plunged 3.7% in May 2025, and the annual gain was a paltry 0.6%. This mismatch underscores the difficulty of obtaining a more balanced two-way recovery in the tourism industry, while Asia receives a greater number of Australian tourists.

That said, the USA continues to be a top contender for Australians, and we saw no shortage of interest in cities including New York, Los Angeles, and Hawaii. But US travel to Australia may need a more targeted recovery effort in a post-COVID world, given the competitive environment and trends in preference towards closeby, Asian destinations.

Domestic Travel and Airline Performance

Domestically, Australian travel is reasonably constant with variation in specific routes. Melbourne-Sydney remained the busiest city pair with 811,371 seats flown in April 2025, down 1.7 per cent year-on-year. This is indicative of overall domestic air travel, which experienced some capacity growth on key routes and a minor decline on others. Domestic travel is still a key sector for the travel market in Australia, and there are people travelling there for business, for leisure, or to see family.

Meanwhile, in the international aviation market, Qantas Airways was the leading international airline with 16.5% market share in March 2025, while Jetstar continued to grow its market share to 12.3%. These figures indicate an increasingly stronger Australian domestic carrier base on particularly Asia-Pacific routes.

The Rise of Purpose-Driven Travel

In terms of Australians’ future travel habits, holidays are still the biggest driver of travel, making up 63.6% of all outbound travel in October 2025. This is accompanied by visits to friends and relatives-especially in the beginning of the year-whilst business and other forms of travel account for a smaller share of the travel market.

The increase in mission-led travel, especially in wellness, travel, and cultural tourism, suggests that Australian travelers are looking for experiences that match their personal values and emotional requirements. Wellness retreats in Bali, cultural-historical tours in Japan, and the culinary-oriented itineraries to Vietnam are all manifestations of how traveling is being redefined by a more experiential and broader lifestyle trend.

Future Outlook and Trends

As Australian travel pivots to recovery following the pandemic, these trends reflect demand for more customised, immersive travel experiences based on individual interests and tastes. Asia will continue to feature prominently on the Australian hit list with Bali, Japan, and Vietnam amongst favorites. The shifting market environment signifies a more dynamic and diverse landscape for travel, where destinations rich in tradition, culture, exploration, and health will prosper.

In summary, Australia’s outbound market has seen outstanding growth, and there’s no denying that Asia is the most popular choice for Aussies. As tastes continue to change, the travel industry must respond by offering more personalized, experiential, and sustainable forms of travel. Whether it’s the city buzz of Tokyo, the serene beaches of Bali, or the historic treasures found in Vietnam, there will always be destinations that will allow Australians to experience life-changing, emotional travel experiences.

(Source: Australian Travel Industry Association, government reports, travel industry publications, tourism market analysis)