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 $9.8 billion in the year ending March 2021, representing a significant decline of 69% year-on-year due to coronavirus (COVID-19), which has had a devasting impact on the visitor economy in Victoria.
  • Total tourism expenditure in Victoria suffered a net loss of $21.5 billion year-on-year. This unprecedented crisis has set the industry back significantly - total tourism spend in Victoria has not been this low for over 20 years.
  • Domestic expenditure (daytrip and overnight combined) comprised $9.7 billion or 99 per cent of total tourism expenditure in Victoria in the year ending March 2021, given the restricted intake of international visitors. This included domestic overnight spend ($6.5 billion) and domestic daytrip spend ($3.3 billion), which have both experienced large declines year-on-year of 61% and 49% respectively.
  • International overnight spend in Victoria was  just $80 million in the year ending March 2021, representing a substantial year-on-year decline of 99  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 previous year to 46.5 million or down 49.0 million visitors compared to the year ending March 2020.

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