10 September 2025

Why would anyone holiday in Australia anymore when it's often cheaper to go overseas?

| By Oliver Jacques
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Cairns Esplanade

A holiday in Cairns might cost you more than a trip overseas, which isn’t great for the future of domestic tourism. Photo: Cairns Tourism.

I remember discussing holiday plans with classmates when I was at primary school – many of us would be bound for the South Coast, a few lucky ones off to Queensland, but only the spoiled rich kids would get to brag about an exotic overseas destination.

Nowadays, it seems you need to be wealthy to contemplate a non-camping getaway within Australia, while those on a budget would be better served by jetting abroad.

For travellers from Canberra planning a trip during the upcoming school holidays, the minimum cost for return flights is approximately $400 to Melbourne, $500 to Brisbane, $700 to Cairns, and over $1000 to Townsville.

A good quality hotel in these destinations is around $200 a night and feeding a family in a nice restaurant is in the same ballpark. If you want to visit theme parks, a winery or attend a football match or the theatre, you won’t find many bargains.

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Most of our cities and regional towns are not well served by public transport, so hiring a car is often necessary, which might set you back another $80 to $100 per day.

If you don’t stay with relatives (which may negate the purpose of a holiday escape), costs add up rapidly. A recent five-day trip to the Sunshine Coast with my wife set us back about $3000, without any extravagant spending. We didn’t even take any kids, which would have increased the cost substantially.

When we got back home, we wondered why we didn’t just go overseas. A week-long trip to Vietnam we’d taken last year was much cheaper. The flights were only a little pricier, but we stayed in luxurious accommodation for $70 a night, ate like kings for a few dollars and took taxis to all the attractions for prices that were less than Sydney train tickets. We immersed ourselves in a different culture, cuisine and landscape for a fraction of the cost of experiencing the sameness of another Australian destination.

Even going to Europe might compare favourably with domestic tourism if you can find one of the many bargain flight prices on offer. On arrival, you’ll find far more quality budget accommodation options like guesthouses, public transport is generally more accessible and set meals at restaurants lower the cost of eating out.

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The high costs of tourism in Australia are unlikely to change any time soon. There is a lack of competition in a country with a relatively small population servicing large geographical areas. Two airlines, the Qantas group and Virgin, dominate the aviation industry and can charge whatever they want. High minimum wages, skill shortages and steep regulations mean hospitality operators need to keep prices high to remain in business.

It’s true that domestic tourism remains popular, particularly since COVID struck and going overseas wasn’t an option. But with international travel accelerating again, the future doesn’t look bright for an industry that employs over half a million Australians. Policymakers may need to come up with creative solutions to keep regional tourism viable – like the Western Australian Government’s move to cap the price of flights to Perth for regional residents.

In the meantime, an increasing number of our citizens are being priced out of travelling in their own country. For them, the choice is simple – stay home or look further abroad.

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I had a cousin from overseas ask if I would travel around Australia with her. I said “no” for many reasons, I don’t have leave, it’s too expensive and i’m not interested. I know that sounds bad, and it’s not that I don’t want to spend time with my cousin but it’s a lot of time and money (that I don’t have) spent on something I don’t like.

A few years ago I travelled to QLD for a wedding. When I looked at the cost of travel I realized ‘I could fly overseas at that price.’ The flip side to that is, my relatives overseas RARELY come down here because it’s too expensive. Years ago when I was in College a teacher read an article titled ‘Australia, Once Visited but Never Returned.’ This was a shock to me but as years go by I’m starting to understand it more. Another point, the types of things I’m interested are more available overseas so why would I travel Australia?

Why would anyone holiday in Australia when overseas is soooooooo much more interesting and has more variety?

Gregg Heldon8:19 am 11 Sep 25

I agree with most of this, especially in South East Asia. Even in Singapore, you will get Michelin mentioned eateries in food courts that will sell set menus for less than $10-12.
Attractions being less than Sydney train tickets is correct but just remember, off peak Sydney train tickets are cheaper than Canberra bus tickets.

I was looking at some camping holidays in the NT and the nightly rate for sleeping in a tent was more expensive than staying at a five star city hotel.

Yeah, that’s not right. Why pay a fortune to live like a Hobbo?

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