New Report Shows International Backpackers Helped to Shock Proof Australian Tourism Market

A new Tourism Research Australia (TRA) report released last week indicates that international backpackers helped to shock proof the tourism market for Australia, growing at a faster rate than other international travel segments to Australia between 1999 and 2003.

The report, Backpackers in Australia, 2003, Niche Market Report No. 4, indicates that the number of international backpackers travelling in Australia grew at an average of 3.5 per cent annually between 1999 and 2003, which was double the average annual growth for all international visitors over the same period.

Tourism Australia Acting Managing Director, Ken Boundy said the report highlights the resilience of the backpacker market for Australian tourism during what was a difficult period for the industry post September 11.

"During the five year period from 1999 to 2003 the number of domestic and international backpackers travelling in Australia grew 25 per cent from 753,000 to 943,000, well above the total growth in domestic and inbound tourism," Mr Boundy said.

"Last year international backpackers accounted for 11 per cent of overseas visitors to Australia however they spent $2.3 billion during their stay, which was around 20 per cent of all expenditure by international visitors.

"The domestic backpacker market has shown a rise in the number of travellers staying in backpacker accommodation over the past five years and an increase in per night spend, however they are taking shorter trips.

"While the report delivers positive news on the backpacker sector, market intelligence indicates that there has been some softening in the backpacker travel market for Australia in the nine months to September 2004.

"The softening of the backpacker market can be attributed to a number of factors including the rising value of the Australian dollar and increases in the cost of long haul travel.

"However, Australia's previous success in the sector highlights the importance of keeping the Australian backpacker experience fresh and affordable."

The report, Backpackers in Australia, 2003, Niche Market Report No. 4, analyses the backpacker market from both an international and domestic perspective, using data from TRA's International Visitor Survey (IVS) and National Visitor Survey (NVS).

Highlights of the Report

International backpackers

In 2003 around 468,000 international backpackers visited Australia, representing 11 per cent of all international visitors.

Expenditure by international backpackers in Australia in 2003 amounted to $2.3 billion, accounting for 20 per cent of the total expenditure by all international visitors.

On average international backpackers spent $4,857 each on their travels in Australia (excluding package tours, pre-paid international airfares and other major purchases). This was more than twice the average amount spent by international non-backpacker visitors ($2,272).

International backpackers also stayed considerably longer in Australia than other international visitors. In 2003 international backpackers spent 30 million nights in Australia, representing 25 per cent of total international visitor nights, with each international backpacker staying an average of 64 nights in Australia, compared with 23 nights for other international visitors.

In 2003 eight in 10 backpackers were aged between 15 and 34 years, with an equal split of males and females. Sixty four per cent of international backpackers were from Europe, including 26 per cent from the UK.

International backpackers visited regional parts of Australia more than other international travellers. In 2003 international backpackers visited an average of 6.2 regions in Australia, compared to an average of 2.0 regions visited by all other international visitors.

International backpackers participated in twice as many activities as other international visitors travelling in Australia.

Domestic backpackers

Between 1999 and 2003 the number of domestic backpackers grew at an average annual rate of 8.2 per cent.

In 2003 the average trip spend for domestic backpackers was $959. The nightly spend for domestic backpackers was $191 per night - more than double that of international backpackers.

Domestic backpackers were more likely to stay in a backpacker hostel and are less likely to travel alone, compared to international backpackers.

The average trip length for domestic backpackers in 2003 was five nights.

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