A New Wave of Visitors Arrives on Australian Shores
The latest data from the Australian Bureau of Statistics (ABS) paints a vibrant picture of the nation's tourism landscape. Released on 15 April 2026, the February 2026 Overseas Arrivals and Departures figures confirm what many in the industry have been feeling on the ground: international visitors are not only returning, they are arriving in record numbers. With 943,220 short-term visitor arrivals, the month marked a significant 19.7% increase compared to the previous year, and more importantly, surpassed pre-COVID levels from February 2019 by 1.7%. [1]
This resurgence is a clear indicator of Australia's enduring appeal as a global destination. For property investors and managers, particularly in the short-term rental (STR) market, this data provides critical insights into shifting demand, new opportunities, and the importance of strategic positioning.
The Shifting Source Market: A Diversified Mix
A key takeaway from the ABS data is the changing composition of our international visitors. China has firmly established itself as the largest source country, accounting for 220,170 trips, or 23.3% of all arrivals in February. This is a significant shift, highlighting the renewed strength of the Chinese travel market. Following China, our traditional high-volume markets, New Zealand (85,190 arrivals) and the United Kingdom (83,580 arrivals), continue to show strong and stable growth. [1]
This diversification of source countries is a healthy sign for the market. It reduces reliance on any single country and opens up new avenues for targeted marketing and guest experiences. Furthermore, data from the Australian Tourism Industry Association (ATIA) reveals another layer to this story. While total inbound visitors for the year ending November 2025 reached 8.84 million, there is a noticeable trend of Australian travellers turning away from the USA and towards Asia. Inbound travel from the USA grew by only 4%, well below the national average of 9.5%, suggesting a broader recalibration of travel flows. [2]
State by State: Where the Growth Is
The influx of visitors is not evenly distributed, with some states experiencing more significant growth than others. The data provides a clear view of where demand is concentrating.
| State/Territory | Visitor Arrivals (Feb 2026) | Year-on-Year Growth |
|---|---|---|
| New South Wales | 367,220 | +15.0% |
| Victoria | 263,660 | +25.9% |
| Queensland | 156,600 | +16.7% |
| Western Australia | 95,790 | +28.1% |
| South Australia | 30,340 | +19.5% |
| Tasmania | 14,170 | +46.5% |
| Northern Territory | 4,450 | +53.1% |
| ACT | 10,900 | -9.9% |
Source: ABS Overseas Arrivals and Departures, February 2026 [1]
For Letto Property Group, with its focus on the key eastern seaboard markets of New South Wales, Victoria, and Queensland, this data is particularly telling. Victoria is leading the charge with an impressive 25.9% year-on-year growth, indicating a powerful resurgence in its tourism appeal. New South Wales continues to be the primary gateway, commanding the largest absolute number of visitors, while Queensland's steady growth reinforces its position as a tourism powerhouse.
What This Means for Short-Term Rental Demand
The implications for the STR market are profound. This sustained increase in international arrivals directly translates to higher demand for high-quality, well-managed short-term accommodation. The surge from the Chinese market, for example, presents a specific opportunity. These travellers often seek unique, culturally aware experiences and value properties that cater to their needs.
At Letto Property Group, we analyse these trends not just as numbers, but as indicators of human behaviour and preference. Our approach is to position our clients' properties to meet the evolving demands of this new wave of travellers. This means more than just providing a place to stay; it involves creating a complete guest experience that is seamless, memorable, and aligned with the specific desires of our target guest demographics.
With Victoria experiencing the highest growth rate, the demand for premium STRs in Melbourne and its surrounding regions is set to intensify. In Sydney, the challenge and opportunity lie in standing out in a competitive market, leveraging the city's status as the primary entry point for international visitors. In Queensland, the consistent growth in Brisbane and the Gold Coast requires a sophisticated approach to revenue management and marketing to capture the full potential of both domestic and international demand.
Understanding these macroeconomic trends is fundamental to successful property investment. The data is clear: Australia's tourism sector is not just recovering; it is entering a new phase of growth and diversification. For STR investors, the time is now to partner with experts who can navigate this changing landscape and unlock the full potential of their assets. Letto Property Group is committed to providing that expertise, ensuring our clients are perfectly positioned to welcome the world.
References
[1] Australian Bureau of Statistics. (2026, April 15). Overseas Arrivals and Departures, Australia, February 2026. https://www.abs.gov.au/statistics/industry/tourism-and-transport/overseas-arrivals-and-departures-australia/latest-release
[2] Australian Tourism Industry Association. (2026). Inbound Tourism Data. [Source details not fully available in provided data]