Summary

Each year, Tourism Research Australia (TRA) publishes a detailed summary of the number of tourism businesses in Australia. Data is drawn from the Australian Bureau of Statistics (ABS). 

This year, we include information on the 2 broad groups that tourism businesses fall into:

  • tourism characteristic industries – such as accommodation, where visitors consume at least 25% of output. Businesses in these industries are considered to be reliant on tourism.
  • tourism connected industries – such as automotive fuel retailing, where products are consumed by visitors in volumes considered to be significant. However they still comprise less than 25% of consumed output.

Factsheet

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Tourism businesses in Australia

 
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Key findings

The number of tourism-related businesses in Australia was 360,202 in June 2024. This is an increase of 2,588 or 0.7% on the 355,570 tourism businesses operating nationwide in June 2023.

Of the June 2024 number:

  • 203,264 businesses (56% of total) were in tourism characteristic industries
  • 156,938 businesses (44%) were in tourism connected industries

Tourism-related businesses comprise 13.5% of all Australian businesses, or around 1 in 7.

Approximately 95% of tourism businesses in Australia are small businesses, with fewer than 20 employees. Nearly half (49%) of all tourism businesses have a turnover under $200,000.

Seventy per cent (253,000) of tourism businesses are in Australia’s capital cities or the Gold Coast.

Of the 333,000 tourism-related businesses operating in June 2020, 192,000 (58%) were still operating 4 years later in June 2024. This is lower than the survival rate for all Australian businesses over this period (64%).

Clubs, pubs and bars (71% survival rate) and accommodation (66%) fared better than travel agency and tour operator services (57%) and taxi transport (40%).

The tourism-related industry with the largest relative increase in business numbers was motor-vehicle hiring (up 63%)

Tourism businesses in Australia at a glance (June 2024)

Chart showing tourism related businesses in Australia at a glance in 2024. The division is between tourism-characteristic, tourism-connected industries, proportion of businesses in regional Australia, number of small businesses, and tourism businesses by turnover.

1. Regional Australia includes all areas outside of state and territory capital cities and the Gold Coast tourism region.
2. Businesses with fewer than 20 employees  (including non-employeing businesses).
3. Comparison is with 2020 rather than 2019 as this data series started at 2020.

The infographic above shows tourism business statistics including total number of businesses. The division is between tourism-characteristic, tourism-connected industries, proportion of businesses in regional Australia, number of small businesses, and tourism businesses by turnover. Statistics as follows:

  • There were a total of 360,202 tourism-related businesses in Australia in June 2024. This is an increase of 2,588 business (0.7%) on last year (June 2023) and an 11% increase (35,000 business) on June 2019.
  • 56% of tourism-related businesses are from tourism-characteristic industries, while the other 44% are from tourism-connected industries.
  • The number of tourism-characteristic businesses has increased by 1.4% since June 2023 and by 8% since 2019.
  • The number of tourism-connected businesses has decreased by 0.2% since June 2023 but increased by 15% since 2019.
  • Regional Australia stats: 30% of tourism-related businesses are located in regional Australia. This is up from 28% in 2019.
  • Small businesses stats: 95% of tourism-related businesses are classified as small (with less than 20 employees including non-employing businesses). This is an increase of 0.4% on June and an increase of 10% on 5 years ago (June 2019).

The most common turnover range of tourism-related businesses in 2023-24 (encompassing 39% of businesses) was $200,000 to $2 million. Next were $50,000 to $200,000 (with 25%) and $0 to $50,000 (with 24%). Businesses with turnover greater than $2 million accounted for only 12% (7% for $2 million to $5 million; 3% for $5 million to $10 million and 2% for over $10 million).

Growth in tourism-related business numbers (2019 to 2024)

While the number of tourism businesses grew by 11% between 2019 and 2024, most growth happened between 2019 and 2022. Business numbers remained at around 360,000 between 2022 and 2024. 

For context, the total number of Australian businesses grew by 12% over the same period (2019 to 2024) (Source: Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits.

Figure 1: Number of tourism-related businesses (June 2019 to June 2024)

chart created with amCharts | amCharts

Note: % change from previous year shown alongside the total number (at top of columns).

Column graph showing the number of tourism-related businesses in Australia each year between 2019 and 2024. The total number of businesses by year is as follows:

  • 2019: 326,000
  • 2020: 333,000
  • 2021: 344,000
  • 2022: 360,000
  • 2023: 258,000
  • 2024: 360,000

Industries

Accounting for 2 in 3 tourism-related businesses, two industries play a significant role in the tourism industry and are important drivers of economic activity. 

In 2024:

  • retail trade (a tourism-connected industry) was the largest tourism-related industry, with 153,000 businesses (42% of total).  
  • cafes, restaurants and takeaway food services comprised the largest tourism-characteristic industry, with 87,000 businesses (24% of total tourism-related businesses).

Figure 2: Number of tourism-related businesses by industry (June 2024)

chart showing tourism characteristic industries at the top, and tourism connected industries at the bottom

Bar graph showing the number of tourism-related businesses in Australia in June 2024 by industry. It also shows each industry’s share of all tourism-related businesses. The industries are categorised as tourism-characteristic industries or tourism-connected industries.

The graph shows that the largest industry is other retail trade - accounting for 42% of tourism-related businesses. The next three largest industries are cafes, restaurants and takeaway food services (24%), taxi transport (10%) and cultural services (6%). 

Changes in tourism businesses by industry (2019 to 2024)

Over this 5-year period:

  • the largest relative increase in business numbers was seen in motor-vehicle hiring (up 63% or 1,300 businesses)
  • the largest relative decline was in taxi transport (down 17% or 7,400 businesses).  

The largest growth in absolute terms was in:

  • retail trade (up 20,000 businesses or 15%)
  • cafes, restaurants and takeaway food services (up 11,000 businesses or 15%). 

Figure 3: Change in the number of tourism-related businesses (June 2019 to June 2024)

Bar graph showing the change in change in the number of tourism-related businesses by industry between 2019 and 2024 as a percentage of the number in 2019.

The data shows that the number of tourism-related businesses as a whole increased by 11% over this period.

The industry with the largest percentage increase was motor vehicle hiring (which increased by 63% (1,300 businesses), then cultural services (31% or 5,000) and other sports and recreation services (23% or 3,000). 2 industries have declined since 2019. These were taxi transport (which suffered a 17% reduction (7,400 businesses) and Casinos and other gambling services (with a 7% reduction).  

Tourism-related businesses by size

In June 2024, around 4 in 5 (78%) tourism-related businesses were non-employing (i.e. sole operator) or micro businesses (with 1–4 employees). Only 5% of tourism-related businesses were medium or large businesses (20 or more employees). However, this is a higher proportion than that of all Australian industries (3%). This breakdown of businesses by size remained relatively steady compared with June 2023.

Figure 4: Number of tourism-related businesses by size (June 2024)

Column graph showing the number of tourism-related businesses in Australia in June 2024 by size (based on employee numbers). The data shows that the 50% of tourism-related businesses are non-employing, 28% are micro (1-4 employees), 17% are small (5-19 employees), 5% are medium (20-199 employees) and just 0.3% are large (with 200 or more employees). 

Tourism-related businesses by turnover

Almost half (49%) of tourism-related businesses had a turnover under $200,000, while 5% of tourism-related businesses had a turnover of more than $5 million. By contrast, 57% of all Australian businesses had a turnover under $200,000, while 4% had a turnover over $5 million.

The most common turnover range was between $200,000 to $2 million, for 39% or 2 in 5 tourism-related businesses. 

Figure 5: Number of tourism-related businesses by turnover (June 2024)

Column graph showing the number of tourism-related businesses in Australia in June 2024 by annual turnover. The graph shows the number of tourism-related businesses in Australia in June 2024 by turnover range. The data shows that 24% of businesses had a turnover under $50,000; 25% had a turnover between $50,000 and $200,000 and 39% had a turnover between $200,000 and $2,000,000. 7% of businesses had a turnover between $2 million and $5 million, 3% between $5 million and $10 million and just 2% had a turnover greater than $10 million. 

Location of tourism-related businesses

Seven in 10 (70% or 253,000) of tourism-related businesses are in Australia’s capital cities or the Gold Coast. Three in 10 (30% or 107,000) are in regional Australia. The proportion of tourism-related businesses in regional areas rose to 30% from 28% between 2019 and 2024. With the total number of businesses relatively steady from June 2023 to June 2024, this growth highlights the increasing role and potential of regional tourism. 

The 3 most populous states are home to 82% of all tourism-related businesses in Australia:

  • New South Wales – 118,000 tourism-related businesses (33% of the national total).
  • Victoria – 111,000 (31% of total).
  • Queensland – 65,000 (18% of total).


Figure 6: Number of tourism-related businesses by state and territory (June 2024)

Note: Total number shown at top of columns.

Column graph showing the number of tourism-related businesses by state (grouped by capital city, regional areas and total). The number of businesses by state is:

  • New South Wales:  118 thousand (33%)
  • Vic: 111 thousand (31%)
  • Qld: 65 thousand (18%)
  • WA: 31 thousand (9%)
  • SA: 20 thousand (6%)
  • Tas: 7 thousand (2%)
  • ACT: 5 thousand (1%)
  • NT: 3 thousand (1%)

Figure 7: Top 10 tourism regions by number of tourism-related businesses (June 2024)

Bar graph showing the top ten tourism regions in terms of the number of tourism-related businesses. The graph shows that the largest tourism-region in terms of business numbers was Melbourne (with 82,000). Next were Sydney (80,000), Brisbane (31,000) and Destination Perth (26,000). 

Survival rate of tourism related businesses (2020-2024)

Of the 333,000 tourism-related businesses operating in June 2020, 192,000 (58%) were still operating 4 years later in June 2024. This is significantly lower than the business survival rate for all Australian businesses over this period (64%) (Source: Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits).  

The survival rate of tourism-related businesses over this period was directly proportional to business size, with larger businesses having a much greater survival rate than smaller ones. For example, some 4-year survival rates by business size were:

  • 88% of large businesses (200+ employees)
  • 48% of non-employing businesses and
  • 64% of micro businesses (those with between 1 and 4 employees).  

Figure 8: Survival rate of tourism-related businesses (2020–2024)

Column graph showing the 4-year business survival rate between 2020 and 2024 of tourism-related business grouped by business size. These survival rates are:

Business size: Survival rate (2020 to 2024)

  • Non-employing 48%
  • Micro (1-4): 64%
  • Small (5-19): 71%
  • Medium (20-199): 81%
  • Large (200+): 88%
  • Total: 58%

Survival rate of tourism related businesses by industry (2020 to 2024)

The industries with the highest survival rates over this 4-year period were:

  • clubs, pubs, taverns and bars (71%)
  • accommodation (66%)
  • air and space, water and other transport (66%). 

The industries with the lowest survival rates were:

  • travel agency and tour operator services (57%)
  • cafes, restaurants and takeaway food services (54%
  • taxi transport (40%).

Figure 9: Business survival rate by industry (2020 to 2024)

Column graph showing the 4-year business survival rate between 2020 and 2024 of tourism-related business by industry. The graph shows that the industry with the highest survival rate was Clubs, pubs, taverns and bars (71% survival rate). Next were Accommodation (66%) and Air and space, water and other transport (66%).

The 3 industries with the lowest survival rates were Travel agency and tour operator services (57%), Cafes, restaurants and takeaway food services (54%) and taxi transport (40%). 

Data tables 2024

More about tourism businesses in our data tables.

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Snapshot of changes in the number of tourism businesses over time.

 
 
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XLS 183KB

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Geographic breakdown: Counts of tourism businesses across Australia's tourism regions.

 
 
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XLS 279KB

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Employment size data: State and territory employment breakdown for tourism industries.

 
 
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XLS 265KB

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Organisation/employment data: Changes in company structures over time.

 
 
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XLS 198KB

Methodology and definitions

The data and summary information is derived from the ABS Business Register database, based on selected businesses from tourism-related industries as defined in the ABS Tourism Satellite Account. The Australian Bureau of Statistics Business Register (ABSBR) is populated using administrative data from Australian Business Number (ABN) registrations recorded in the Australian Business Register (ABR), and business data from the Australian Taxation Office (ATO).  

See: ABS Tourism Satellite Account Methodology for more information.

Contact TRA

mail   tourism.research@tra.gov.au

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