Australia’s travel sector surges year on year as international alerts are downgraded

Risks remain for overseas travellers ahead of the school holidays.

Australia’s domestic tourism industry is strengthening, with jobs up 4.2% year on year, according to the latest quarterly data from the Australian Bureau of Statistics (ABS).¹1

Thousands of roles were added across almost all sectors, including accommodation, retail, cafes, restaurants and takeaway food services, compared to the same period in 2025, highlighting strong demand for experiences and sightseeing.

However, in a sign that could point to travellers being more selective with discretionary spending, the casino and gambling sector shed 400 jobs (–21.1%) over the year.

iSelect’s Sophie Ryan said the figures suggest people may be more careful about how and where they’re spending, but are still finding room in their stretched budgets for holidays and travel experiences.

“Recent ABS figures also show an increase of 3.1% in international arrivals to Australia in the year to April 2026,” she said.

“Of those, 161,700 Aussies returned from Indonesia, making it the most popular overseas destination for April.”²2

As Aussies prepare for upcoming school holiday getaways, the travel insurance comparison service warned holidaymakers about recent crime concerns across Indonesian hotspots, such as Bali.

“Local authorities have ramped up security measures, with reports of tourists being targeted by ‘snatch and grab’ thieves on motorbikes,” Sophie said.³3

“Travellers should take sensible precautions when visiting any overseas destination. Simple measures such as keeping valuables out of sight, avoiding displaying expensive jewellery, and remaining aware of your surroundings can help reduce your risk.”

Meanwhile, the Australian Government has downgraded some of its ‘Do Not Travel’ warnings, including for the United Arab Emirates and Qatar.⁴4

Sophie explained that it is still important Aussies to stay informed and prepared, despite these advice levels being downgraded.

“Whether you’re planning an overseas trip or sticking closer to home this year, it’s a great idea to put travel insurance on top of your planning list,” Sophie said.

“It’s often one of the smallest expenses associated with a holiday, but may provide financial protection if something unexpected occurs,”

“Before travelling, Aussies should check the latest Smartraveller advice and understand what their policy covers and read the Product Disclosure Statement carefully.

“Taking a few extra steps before departure could save travellers a lot of stress later on.”

iSelect’s top tips for finding suitable travel insurance

1. Consider the extras you might need – Most travel insurance policies will include a few low-risk activities, but not everything. If you’re planning on a cruise or something a little riskier, like a skiing trip or a jaunt on a scooter, it might mean taking out some extra coverage.

2. Make sure all your countries are covered – Even if you’re just passing through one country to get to another, it still needs to be listed on your policy. Skipping this step could leave you footing the bill if something goes wrong mid-stopover, like if your car gets some damage en route from Switzerland to Austria. If your insurer covers regions instead of individual countries, it’s important to double-check all the countries listed as well, to make sure you’re covered for 100% of your trip.

3. Declare any pre-existing conditions – If you have a pre-existing medical condition, it’s best to let your travel insurer know before taking out your policy. If it can be covered, it means you could claim for any related issues on your trip. And if you don’t declare it, any related claims could be knocked back.

4. Check the entry conditions for your destination – Some countries won’t let you in without a visa, while others need proof of insurance before entering. Make sure to check which requirements you need to tick off, like visas or certain levels of travel insurance coverage.

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iSelect does not compare all travel insurers or policies in the market. Travel insurance is only available through our website and not all policies are available at all times or in all areas. Not all policies available from our partners are compared by iSelect and due to commercial arrangements and customer circumstances not all policies compared by iSelect will be available to all customers. Click here to view iSelect’s range of providers.

iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold.