A recent study by TravelInsurance.com.au indicates that about one-third of international trips taken by Australians in 2025 will be directed towards Southeast Asia. This marks a notable departure from previous preferences that favored European destinations.

The report forecasts a 42% surge in travel to countries like Thailand, Vietnam, Indonesia, and Malaysia, with up to four million Australians expected to visit the region this year.

Shaun McGowan, the CEO of TravelInsurance.com.au, noted:

“Australian travelers are choosing value over the cost of long-haul journeys. They prefer not to take long vacations for destinations like Europe or the U.S., where costs can escalate and recovery from jet lag can take weeks.”

Additionally, many Australians are still in “revenge travel” mode, compensating for lost travel opportunities during the pandemic with more economical choices.

McGowan further stated:

“With living costs rising, travelers are opting for closer destinations to minimize travel expenses and time.”

Despite the trend towards Southeast Asia, destinations in East Asia—including China, Hong Kong, and Japan—are projected to see the largest growth in terms of Australian arrivals for the year.

In Europe, there may be a slight uptick in travel; with Australia seeing a 14% increase in visitors to France and a 12% increase to the United Kingdom. However, the overall number of overseas trips taken by Australians is expected to be 12.6 million in 2025, down from a pre-COVID estimate of over 14 million.