Australian travelers had been turning their backs on America following Donald Trump’s strict rules, but new data reveals a surprising shift.
Aussies Head Back to the US
According to the Australian Travel Industry Association (ATIA), travel from Australia to the US increased by 4.8% year-on-year and was up 8% in May 2025 compared to May 2024.
Figures from the Australian Bureau of Statistics (ABS) also showed increases in various categories, including traveling on a holiday (up 12% compared to last year), visiting friends or relatives (up 15%), or for business (up 8%).
US President Trump’s Impact on Tourism
Donald Trump had previously denied that tourism had taken a hit. However, the data tells a different story.
US inbound travel to Australia, however, slipped by 3.7% in May and remained flat year-on-year with a modest 0.6% rise.
Australia’s Favorite Overseas Locations
The US continues to take a back seat to destinations like Bali, Japan, and Vietnam, which lead the way as Australia’s favorite overseas locations.
According to recent ATIA figures, outbound travel surged by 12.5% to 12.21 million trips, driven by a strong appetite for travel across Asia.
Asia Continues to Shine
Standout growth included Indonesia (Bali) up 16.3%, Japan up 32.4%, Vietnam up 25.8%, and China up 26.9%.
Japan specifically continues to see growth in visitor numbers thanks to expanded flight options and the region’s strength with the AUD, allowing it to stretch further for accommodation, dining, and shopping.
Australia’s Love Affair with America Could Fade
Flight Centre chief executive and founder Graham Turner said that in the first three months of 2025, leisure bookings to the US from Australia dropped about 12 to 15% compared to last year, while business travel remained “on par”.
Personal finance expert Sarah Megginson warned Australians to check their travel insurance policies carefully before going to the US, as many insurers would not provide cover if you are denied entry at the border.
Tourists Deterred by US Immigration Rules
There have been reported cases of tourists being denied entry on arrival, and at times, strip-searched and thrown in prison.
The US maintains strict immigration rules with significant emphasis on border security and entry eligibility.
Older Australians Less Deterred by US Politics
According to Finder survey results, older Australians are less likely to be deterred by what is happening politically in the US, with this age group actually traveling to the States more on Intrepid trips this year than they did last year.
Canadians Visiting the US Plummets
Visitors from Canada, the country’s biggest market for international visitors, have plummeted more than 14% according to the US International Trade Administration, with almost a million fewer Canadians so far in 2025 compared to last year.
Visitors from other countries, such as China, South Korea, and Germany, have also declined.