Australia’s domestic travel market is proving to be a formidable force in the nation's economy, with Queensland emerging as a standout performer. The latest data from Tourism Research Australia (TRA) reveals that domestic visitor expenditure in the Sunshine State reached a remarkable $33.3 billion in the year ending June 2025, marking a 4.6% increase year-on-year. This surge underscores the resilience and reliability of domestic tourism as the backbone of the short-term rental market, a sector where strategic positioning is paramount.
Queensland's Tourism Powerhouse
While New South Wales ($42.0 billion) and Victoria ($33.9 billion) lead in total visitor expenditure (TVE), Queensland holds a strong third position. However, the state's tourism strength is further highlighted by its number two ranking for domestic overnight visitor expenditure (OVE), which stands at a solid $25.0 billion. This figure is significant as it reflects the market for accommodation, a key area of focus for property investors. Queensland welcomed 25.8 million domestic overnight visitors during the period, a testament to its enduring appeal as a holiday destination.
A key driver of this growth has been a significant increase in day-trip expenditure, which rose by 20.5% to $8.3 billion. This indicates a vibrant and active travel culture within and into the state, creating a consistent flow of demand for local businesses and services.
| State Market Ranking | Total Visitor Expenditure (TVE) | Overnight Visitor Expenditure (OVE) |
|---|---|---|
| New South Wales | $42.0 Billion | Not specified in data |
| Victoria | $33.9 Billion | Not specified in data |
| Queensland | $33.3 Billion | $25.0 Billion |
The Gold Coast: A Domestic Darling
Zooming in on Queensland's tourism landscape, the Gold Coast shines as a jewel in the crown. The city's tourism sector has reached an impressive $8.9 billion, with domestic visitors being the primary contributors, injecting more than $7 billion into the local economy. In the nine months leading up to September 2025, the Gold Coast hosted an incredible 10 million domestic travellers. This consistent influx of visitors from across Australia solidifies the region's reputation as a premier destination and a reliable market for property investment.
The data paints a clear picture: while international travel is rebounding, the domestic market remains the steadfast and dependable engine of the tourism economy, particularly in key lifestyle destinations like the Gold Coast.
The National Boom and Letto's Strategic Edge
The trend of a booming domestic market is not confined to Queensland. Nationally, total visitor spending hit a record $180.6 billion in 2024, with forecasts predicting further growth to $191.6 billion in 2025. This sustained growth provides a stable foundation for the short-term rental market, insulating it from the volatilities that can sometimes affect international travel patterns.
This is where a carefully considered property investment strategy becomes crucial. Letto Property Group’s unique three-city model, with a presence in Sydney, Brisbane, and the Gold Coast, is strategically designed to capitalise on these powerful market dynamics. Sydney serves as Australia’s primary international gateway, capturing the recovering inbound market. Simultaneously, the Brisbane and Gold Coast locations are perfectly positioned to benefit from the robust and ever-reliable domestic travel boom.
By diversifying across these three key markets, Letto Property Group offers its clients a balanced and resilient portfolio. The strategy acknowledges the importance of international visitors while being firmly anchored in the strength of the domestic market. It is an approach that analyses and responds to the data, ensuring that investment properties are located where demand is both strong and sustainable. For property investors, this translates to more consistent returns and a greater degree of confidence in the long-term performance of their assets.
In a dynamic and growing travel landscape, the domestic market is the anchor. The impressive figures from Queensland and the Gold Coast are not just statistics; they represent a powerful and ongoing trend that astute investors can leverage for success.
References
[1] Tourism Research Australia. (2025). Domestic Tourism Statistics Snapshot, Year Ending June 2025. Tourism and Events Queensland.
[2] Tourism Research Australia. (2025). Domestic Travel Data, September 2025.