In a remarkable twist in the tourism landscape, Sri Lanka has officially claimed the title of the third fastest-growing travel destination for Australian holidaymakers in 2025, boasting an impressive 19 percent increase in arrivals year-on-year. According to the latest statistics from the Australian Bureau of Statistics (ABS), the picturesque island nation now ranks just behind outshining well-established regional competitors.
The recent data reveals a notable transformation in travel preferences, with 132,390 Australians choosing to visit Sri Lanka throughout the year. This surge not only highlights Sri Lanka’s appeal but also positions it ahead of traditional heavyweights in the Australian outbound travel market, indicating a robust recovery trajectory for the nation’s tourism sector.
Mathew Duckworth, Australian High Commissioner in Sri Lanka, highlighted the growing trend of Australian tourism to Sri Lanka, stating: “It’s evident that Australians have developed a profound love for traveling to Sri Lanka, a destination renowned for its stunning landscapes, rich heritage, and warm hospitality. Recent statistics reveal an encouraging trend: more Australians than ever are choosing to visit this beautiful island paradise. This surge in interest is particularly significant because Australians are not only more likely to travel extensively within the country, but they also tend to spend more during their vacations compared to tourists from other regions.
This insight opens up exciting avenues for Sri Lanka to enhance its tourism strategy. By crafting a well-targeted and dynamic approach, we can capitalize on this momentum to further increase the number of Australian visitors by 2026. Our collaboration with the Sri Lankan government is vital in this regard, as we strive to create tailored experiences that showcase the diverse beauty, vibrant culture, and unique adventures awaiting in Sri Lanka. Together, we aim to entice even more Australians to witness firsthand the incredible offerings of this remarkable country, making their journeys unforgettable!”
While Sri Lanka is basking in this growth, it still faces the challenge of catching up with the front-runners of the Australian outbound market. Established favorites like Indonesia and New Zealand continue to dominate in sheer visitor numbers. However, industry analysts suggest that Sri Lanka’s remarkable 19 percent growth rate is more significant than the modest increases seen in these saturated markets, as the island carves out a distinctive niche as an alternative travel route.
A pivotal factor driving this anticipated growth is a substantial enhancement in air connectivity. Currently, the primary service on this route is provided by SriLankan Airlines, which offers daily direct flights from Melbourne and additional direct services from Sydney. These connections have been essential for recovery, further bolstered by transit options via Singapore and Kuala Lumpur.
Kanishka Udawatta, Director of Sales at Shangri-La Hotels Sri Lanka, highlighted the evolving nature of the Australian market, emphasizing its transition from a seasonal influx to a consistent year-round growth driver. He urged the industry to rethink its approach to this burgeoning market segment in order to maximize potential.
“For years, Australia was viewed as a seasonal source market for Sri Lanka—booming during certain months and quiet during others. That narrative is now outdated” Udawatta asserted. “Australia is swiftly evolving into a year-round market, fueled by real demand, improved accessibility, and strong emotional connections among repeat Australian travelers. If Sri Lanka aims for sustainable tourism growth, Australia must be prioritized strategically. The critical question is no longer why we should focus on Australia, but rather how swiftly the industry can adapt to this new reality,”
“Strong Australian demand leads to increased restaurant covers, heightened bar revenue, and improved outlet utilization, resulting in greater profit per guest” Udawatta explained. “For hotels, this translates to incremental revenue rather than just filling rooms—this market actively drives total hotel profitability.” Udawatta concluded.
To maintain this upward momentum, industry experts recommend that local hoteliers pivot away from rate-centric offers and instead focus on experience-led packages. Suggestions include curating specialized food and beverage experiences that resonate with Australian dining preferences, ensuring consistent service quality throughout the year, and fostering stronger collaborations with airlines and tour operators.
Furthermore, the economic impact of Australian tourists is proving to be significantly beneficial for the hospitality sector. Unlike budget-driven travelers who primarily focus on room occupancy, Australian visitors are recognized as high spenders, particularly on food and beverage, thus greatly enhancing overall hotel profitability. –
CLAUDE GUNASEKERA
