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This report explores the importance of the Travel & Tourism sector to Oceania, with particular emphasis on its economic, environmental, and social footprint in the region. In 2019, the sector contributed over US$192 billion to Oceania’s GDP, supporting over 2.2 million jobs. Although the pandemic caused a sharp 31.8% decline in the sector’s overall GDP contribution. Oceania has bounced back. By 2023, the sector was able to surpass pre-pandemic levels – with Australia the primary driving force behind its recovery.
Although domestic travel surged, international visitor spending remains below 2019 levels, with a full recovery not expected until 2025. Despite this, Oceania’s Travel & Tourism sector is expected to expand by 16.5% in 2024 compared to its pre-pandemic contribution. In the next ten years, the sector is projected to see a 3.2% annual growth rate, overtaking the region’s overall economic growth.
Travel & Tourism provides many employment opportunities for young people, women, and those from marginalised communities. Yet the pandemic exacerbated workforce shortages, with many countries struggling to fill vital roles in hospitality and other tourism industries. Labour migration to higher-paying nations like Australia and New Zealand has further intensified this issue and has created skill gaps in developing countries in the region. Addressing this problem requires targeted workforce development strategies.
Although Oceania’s Travel & Tourism sector faces many challenges, they are outweighed by its opportunities for growth. Greater investment in infrastructure, including upgraded airports and new flight routes, can boost intra-regional connectivity and unlock new markets. Streamlining visa processes and enhancing digital solutions can further ease travel across the entire region.
Sustainability is similarly central to Oceania’s future success. Tourists – especially from younger generations – are increasingly seeking out eco-conscious destinations and more authentic cultural experiences. A number of destinations in the region are leading the charge on developing climate-friendly tourism infrastructure, while smaller economies must balance economic growth with the need to protect fragile ecosystems from climate change and rising sea levels.
Our scenario analysis of a policy package aimed at enhancing infrastructure, labour market quality and sustainability, and improving visa facilitation, projects a US$29 billion increase in the sector’s contribution to GDP (over the baseline forecast) by 2034.
Oceania has the potential to lead the way in creating a better, responsible, and more inclusive Travel & Tourism sector, if it focuses on sustainable tourism and community engagement. By embracing its unparalleled diversity, its many cultures, and the power of its Indigenous communities, it will do just this.
Oceania
This report explores the importance of the Travel & Tourism sector to Oceania, with particular emphasis on its economic, environmental, and social footprint in the region. In 2019, the sector contributed over US$192 billion to Oceania’s GDP, supporting over 2.2 million jobs. Although the pandemic caused a sharp 31.8% decline in the sector’s overall GDP contribution. Oceania has bounced back. By 2023, the sector was able to surpass pre-pandemic levels – with Australia the primary driving force behind its recovery.
Although domestic travel surged, international visitor spending remains below 2019 levels, with a full recovery not expected until 2025. Despite this, Oceania’s Travel & Tourism sector is expected to expand by 16.5% in 2024 compared to its pre-pandemic contribution. In the next ten years, the sector is projected to see a 3.2% annual growth rate, overtaking the region’s overall economic growth.
Travel & Tourism provides many employment opportunities for young people, women, and those from marginalised communities. Yet the pandemic exacerbated workforce shortages, with many countries struggling to fill vital roles in hospitality and other tourism industries. Labour migration to higher-paying nations like Australia and New Zealand has further intensified this issue and has created skill gaps in developing countries in the region. Addressing this problem requires targeted workforce development strategies.
Although Oceania’s Travel & Tourism sector faces many challenges, they are outweighed by its opportunities for growth. Greater investment in infrastructure, including upgraded airports and new flight routes, can boost intra-regional connectivity and unlock new markets. Streamlining visa processes and enhancing digital solutions can further ease travel across the entire region.
Sustainability is similarly central to Oceania’s future success. Tourists – especially from younger generations – are increasingly seeking out eco-conscious destinations and more authentic cultural experiences. A number of destinations in the region are leading the charge on developing climate-friendly tourism infrastructure, while smaller economies must balance economic growth with the need to protect fragile ecosystems from climate change and rising sea levels.
Our scenario analysis of a policy package aimed at enhancing infrastructure, labour market quality and sustainability, and improving visa facilitation, projects a US$29 billion increase in the sector’s contribution to GDP (over the baseline forecast) by 2034.
Oceania has the potential to lead the way in creating a better, responsible, and more inclusive Travel & Tourism sector, if it focuses on sustainable tourism and community engagement. By embracing its unparalleled diversity, its many cultures, and the power of its Indigenous communities, it will do just this.
Oceania
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