19 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.

If you’re planning a trip from Griffith during the upcoming school holidays, you’re already looking at a price of more than $1000 to fly to Brisbane and back. From Wagga, it’s only marginally cheaper. Even if you the drive to Canberra from the Riverina to cut costs, the minimum price for return flights from there 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.

Original Article published by Oliver Jacques on Region Canberra.

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