Victoria has overtaken Queensland to secure second place in Australia’s tourism economy, according to the latest Tourism Research Australia figures. The data shows Victoria now holds 24.7 per cent of the nation’s total visitor spend, sitting behind only New South Wales.
International visitor spending surged 20 per cent year-on-year in the year ending June 2025, underscoring the state’s growing reputation as a global destination. International visitation rose 11.5 per cent, while visitor nights climbed 21.5 per cent over the same period.
The growth is being fuelled by Victoria’s packed major events calendar and strengthened partnerships with international businesses and airlines. A standout performer has been India, with visitor spending skyrocketing 78.9 per cent.
Victoria now leads the nation for Indian visitor numbers, nights and spending, boosted by the state’s India Strategy and last summer’s blockbuster Boxing Day Test between Australia and India.
China remains Victoria’s largest international tourism market, with visitors spending $3.1 billion in the year ending June 2025 – a 24.6 per cent increase on the previous year. The state is also leading the way in attracting interstate travellers. Melbourne outperformed Sydney as the top interstate overnight destination, recording three million nights in the June quarter alone.
Victoria’s accommodation sector is reaping the rewards of this demand. Hotels across Melbourne CBD and Greater Melbourne recorded their busiest-ever months for nights booked in January, March, April, May, June, July and August.
Regional Victoria has also seen significant gains, with Victorians spending $1.8 billion across 9.8 million nights in regional areas during the June quarter. International visitors contributed a further $832 million to the regions over the past financial year, cementing their role in the state’s tourism economy.
Visit Victoria CEO, Brendan McClements said: “From blockbuster sporting events to cultural activity and regional festivals, there is a huge calendar of events delivering benefits right across Victoria.”
“Whether visitors are travelling from across the country or just down the road, Victoria’s compact diversity means there is something for everyone here to enjoy,” he said.
With major events, sports, and cultural festivals continuing to draw global attention, the latest results signal Victoria’s strong momentum heading into 2026.
