Victoria's core tourism sectors

Tourism is a significant economic driver for Victoria.  Visitors to and within Victoria generate both direct and flow on impacts across industries to deliver and support visitor experiences and consumption in the state.

People travel for leisure, whether it be for holidays or visiting friends or relatives, and also travel for business, education and employment purposes and are all part of the visitor economy.  Visitors travel to and around the state, spending money along the way, contributing to the economy through nights in hotels or other accommodation providers, consuming food and wine, shopping, attending events and visiting attractions.

The Victorian Tourism Industry Council (VTIC) defines the industry as comprising six core sectors:

  1. Events
  2. Accommodation
  3. Attractions
  4. Transport
  5. Service/hospitality (restaurants with popular tourism hotspots)
  6. Destination marketing

Fast facts

  • In 2019-20 the state's tourism industry generated $23.4 billion (directly and indirectly) in Gross State Product, accounting for 5.0 per cent of Victoria’s economy.
  • Tourism in Victoria generated 232,000 jobs in 2019-20, equating to 6.8 per cent of employment in the state.
  • The latest data from Tourism Research Australia shows that total tourism expenditure in Victoria was $13.0 billion in the year ending December 2020, representing a significant decline of 60 per cent year-on-year due to the dual crises of bushfires and coronavirus (COVID-19), which have had a devastating impact on the visitor economy in Victoria.
  • Total tourism expenditure in Victoria suffered a net loss of $19.5 billion compared to the year ending December 2019, with further losses expected as the crisis continues to unfold.
  • Domestic expenditure (daytrip and overnight combined) comprised $10.5 billion or 81 per cent of total tourism expenditure in Victoria in the year ending December 2020. This included domestic overnight spend ($7.0 billion) and domestic daytrip spend ($3.5 billion), which have both experienced large declines year-on-year of 59 per cent and 47 per cent respectively.
  • International overnight spend in Victoria was $2.5 billion in the year ending December 2020, representing a substantial year-on-year decline of 72 per cent due to coronavirus (COVID-19) related travel restrictions, which have halted the flow of international visitors into the country.
  • Total visitors to and within Victoria decreased by 51 per cent from the year ending December 2019 to 49.7 million in the year ending December 2020, down 50.7 million visitors.

Find out more about the value of tourism to Victoria's economy.