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Vietnam Captures Australian Travel Market
Australian holidaymakers are increasingly diversifying their travel portfolios, shifting focus toward Vietnam’s blend of tropical coastlines, historic architecture, and culinary diversity. The country is now competing directly with established Asia-Pacific hubs by offering high-value, multi-experience itineraries in a relatively compact geography.
According to the Australian Travel Industry Association (ATIA), utilizing Australian Bureau of Statistics (ABS) data, Australian residents completed approximately 588,490 trips to Vietnam in the 12 months ending August 2026. This represents a 17.4% year-on-year increase, marking Vietnam as the most rapidly expanding major destination in the region.
Broad Recovery in Overseas Travel
The surge in Vietnamese tourism is part of a wider upward trend in Australian outbound travel. In the financial year ending June 2026, Australian residents made 12.71 million short-term overseas trips, surpassing the 12.26 million trips recorded in the 2024–25 period.
While Indonesia remains the volume leader in terms of total trips, Vietnam's growth rate is the most aggressive among its primary competitors. This shift suggests a growing appetite for "discovery" destinations like Phu Quoc and Hoi An over traditional beach or city breaks.
Comparative Destination Performance (FY 2025–2026)
The following data compares Vietnam against seven other popular destinations based on ABS financial-year figures.
| Destination | Resident Trips (Year Ending June 2025) | Resident Trips (Year Ending June 2026) | Approx. Annual Change |
|---|---|---|---|
| Indonesia | 1,741,370 | 1,777,270 | +2.1% |
| New Zealand | 1,409,320 | 1,489,460 | +5.7% |
| Japan | 910,640 | 992,550 | +9.0% |
| China | 652,960 | 743,960 | +13.9% |
| Thailand | 643,530 | 624,260 | −3.0% |
| India | 590,560 | 615,740 | +4.3% |
| Vietnam | 490,510 | 567,480 | +15.7% |
| Fiji | 408,240 | 430,070 | +5.4% |
Long-Term Growth Trajectory (2021–2026)
The recovery of the Asia-Pacific travel corridor is evident when analyzing the five-year window following pandemic restrictions. Vietnam's growth is particularly stark, with trips increasing from a baseline of 29,160 in 2021–22 to 567,480 in 2025–26.
Five-Year Trip Volume (Rounded to nearest thousand)
| Destination | 2021–22 | 2022–23 | 2023–24 | 2024–25 | 2025–26 |
|---|---|---|---|---|---|
| Indonesia | 93,000 | 1,127,000 | 1,531,000 | 1,741,000 | 1,777,000 |
| New Zealand | 195,000 | 1,197,000 | 1,310,000 | 1,409,000 | 1,489,000 |
| Japan | 11,000 | 311,000 | 703,000 | 911,000 | 993,000 |
| Thailand | 67,000 | 423,000 | 535,000 | 644,000 | 624,000 |
| India | 158,000 | 484,000 | 515,000 | 591,000 | 616,000 |
| Vietnam | 29,000 | 272,000 | 389,000 | 491,000 | 567,000 |
| Fiji | 127,000 | 376,000 | 396,000 | 408,000 | 430,000 |
Analyzing the Shift in Traveler Behavior
The data reveals distinct patterns in how Australians are choosing their holidays:
- The Volume Giants: Indonesia and New Zealand maintain the highest totals, serving as the "default" choices for short-haul beach breaks and nature-based touring.
- The High-Growth Contenders: Japan and Vietnam are seeing the most significant proportional increases. Japan's recovery from under 11,000 trips in 2021–22 to nearly one million in 2025–26 highlights a massive resurgence in cultural and seasonal tourism.
- The Market Correction: Thailand is the only major destination in the set to show a slight decline (–3.0%) between 2025 and 2026, suggesting that some travelers may be swapping traditional Thai routes for newer experiences in Vietnam.
Key Takeaways
- Vietnam's Dominance in Growth: With a 15.7% to 17.4% increase (depending on the reporting period), Vietnam is the fastest-growing major destination for Australians.
- Market Volume: Indonesia remains the most visited destination with 1,777,270 trips in 2025–26.
- Overall Trend: Australian overseas travel is expanding, reaching 12.71 million short-term trips in the most recent financial year.
- Recovery Scale: Vietnam's 2025–26 trip volume is nearly 19.5 times higher than its 2021–22 baseline.
FAQ
Why is Vietnam becoming more popular than Thailand for some Australians? While Thailand remains a staple, Vietnam offers a unique combination of emerging island destinations (Phu Quoc), heritage towns (Hoi An), and a diverse food scene that appeals to travelers seeking "fresh" experiences.
Does the data count unique people or total trips? The ABS data measures total trips. This means a single individual who visits a destination multiple times in one year is counted as multiple trips.
Which country is the most visited by Australians in the Asia-Pacific? Indonesia continues to be the leading destination by total volume, recording 1,777,270 resident returns in the 2025–26 financial year.
