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 2020-21 the state's tourism industry generated $10.7 billion (directly and indirectly) in Gross State Product, accounting for 2.3 per cent of Victoria’s economy. This represents a decline of 63.7 per cent compared to pre-COVID estimates from 2018-19 and reflects the devasting impacts of the pandemic on the sector in this period.
  • Tourism in Victoria generated 120,000 jobs in 2020-21, equating to 3.6 per cent of employment in the state. Tourism employment also suffered a loss in this period due to COVID-19, down 53.7 per cent compared to 2018-19 estimates.
  • The latest data from Tourism Research Australia shows that total tourism expenditure in Victoria was $14.7 billion in the year ending December 2021, representing an increase of 13 per cent year-on-year. As such, total tourism expenditure in Victoria noted a net gain of $1.7 billion year-on-year.
  • However, total tourism spend was $17.8 billion below the pre-COVID-19 period (year ending December 2019), noting a decline of 55 per cent due to COVID-19 and associated restrictions, which have had a devasting impact on the visitor economy in Victoria.
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  • Domestic expenditure (daytrip and overnight combined) comprised $14.4 billion or 98 per cent of total tourism expenditure in Victoria in the year ending December 2021, given the restricted intake of international visitors due to COVID-19. This included domestic overnight spend ($10.0 billion) and domestic daytrip spend ($4.4 billion), which have both experienced strong increases year-on-year of 43 per cent and 25 per cent respectively from a low base in 2020 due to extended restrictions during the period.
  • International overnight spend in Victoria was $278 million in the year ending December 2021, representing a substantial year-on-year decline of 89 per cent due to COVID-19 related travel restrictions, with only limited entry into Australia allowed from late 2021.
  • Total visitors to and within Victoria increased by 16 per cent from the previous year to 57.8 million or up 8.1 million visitors compared to the year ending December 2020.

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