Victoria’s tourism industry has surged to a historic high, reaching an extraordinary $9.3 billion USD in international visitor spending over the year to March 2025. But this record isn’t just about numbers—it signals a full-force revival of travel, local business momentum, and the emergence of Melbourne as Australia’s new leisure capital.
From the laneways of Melbourne to the tranquil wineries of regional Victoria, international travellers are spending more and staying longer. This dramatic upswing in inbound travel is breathing new life into every layer of the state’s economy—creating jobs, powering small businesses, and filling hotels, galleries, and eateries with a vibrancy that hasn’t been seen in years.
The real engine behind this growth? A dual-market powerhouse: India and China. Indian visitors injected a remarkable $810 million into Victoria’s economy—a staggering 84% year-on-year increase that cements India’s place as one of the state’s most valuable tourism partners. At the same time, Chinese travellers led all nations in total spending, contributing a massive $2.9 billion, up 23% from the previous year. These surges from Asia’s two biggest markets are reshaping Victoria’s visitor base and helping shield the state from fluctuations in global tourism trends.
Victoria’s capital city is also making headlines. In a decisive shift, Melbourne has overtaken Sydney as the top destination for domestic leisure travellers. Between January and March 2025 alone, the city welcomed 861,000 overnight visitors from across Australia. Those guests stayed a collective 3.5 million nights and spent $1.4 billion, demonstrating that Melbourne is attracting volume and delivering value.
It’s clear why. With a mix of world-class events, eclectic food scenes, independent accommodations, and immersive experiences, Melbourne has evolved into a cultural epicentre. Whether it’s a weekend getaway or a deep dive into arts, design, and dining, more travellers are choosing Melbourne over its northern rival.
As international travel continues to rebound, Victoria is fast becoming a global example of what a successful tourism recovery looks like. The state’s ability to not only recapture but exceed pre-pandemic levels of tourism spending signals long-term growth, smart strategy, and broad appeal.
With such momentum, Victoria is setting the pace—not just for Australia, but for the wider global travel industry.
