Why Australian Businesses Must Prepare for Chinese Visitors

Essential strategies for Australian businesses to succeed with the growing Chinese tourism market, focusing on FIT vs group travel.

Australia's tourism industry is experiencing a remarkable recovery, with Chinese visitors regaining their position as the country's second-largest international market. In 2024, approximately 891,550 Chinese visitors arrived in Australia, marking a 63.5% increase from the 507,000 visitors in 2023. This resurgence represents not just numbers, but a fundamental shift in travel patterns that Australian businesses across all states must understand and prepare for.

The economic impact is substantial. Chinese visitors spent $7.89 billion in Australia during 2024, with an average expenditure of $10,200 per person. This makes them among the highest-spending international visitors, maintaining their position as Australia's largest tourism market by expenditure despite ranking second in visitor numbers.

National Visitor Projections and Market Share

Australia is uniquely positioned to capitalise on the Chinese tourism boom, with significant benefits extending across all states and territories. Current projections indicate that China has grown 83% compared to year-to-date November 2023, with the market expected to regain its position as the top source market for inbound tourism to Australia by February 2025.

Recent data shows that in the 12 months to March 2025, 860,000 trips were made to Australia by visitors from mainland China, contributing $9.2 billion to the domestic economy. This represents approximately 25% of all short-term international visitor expenditure in Australia for that period.

Regional Distribution Across Australia

While traditional gateway cities dominate Chinese tourism, the benefits extend well beyond major metropolitan areas, with updated state-by-state performance showing remarkable recovery:

New South Wales

New South Wales maintains its position as the largest recipient of Chinese visitors, with 3.8 million international visitors in 2024 generating $12.0 billion in expenditure. China returned to the top spot as the leading source country for the first time since the pandemic, with 48,150 trips to NSW in January 2025 alone, up from 30,540 in January 2024.

Victoria

Victoria holds strong appeal for Chinese visitors, with Chinese visitors spending $2.7 billion in the state in 2024, maintaining their position as Victoria's top international market for total expenditure. The state's $40 billion visitor economy was significantly boosted by international spending of $9 billion in 2024, up 41% year-on-year.

Queensland

Queensland has seen China return as the state's top tourism market by visitor expenditure, generating $833 million in overnight visitor expenditure in 2024. The state welcomed 143,000 Chinese visitors in 2024, with Chinese holiday visitation recovering to only 16% of 2019 levels, indicating significant growth potential.

Western Australia

Western Australia has experienced remarkable growth, with Chinese visitors surpassing pre-COVID levels and becoming the state's fourth largest international market with 75,000 visitors in FY2024 injecting $328 million into the economy. China has reclaimed its position as WA's top market by visitor spend with $303 million in year-ending March 2024.

South Australia

South Australia has seen Chinese visitation reach 32,000 in 2024, up 99% compared to 2023. The state's Chinese market generated $144 million in expenditure in 2024, though this remains 52% down on pre-COVID levels. The return of China Southern Airlines direct flights from December 2024 is expected to generate $69 million annually.

Tasmania

Tasmania has experienced growth in Chinese tourism, with the state seeing Chinese visitor numbers increase by 29% annually over recent years. The state attracts Chinese visitors particularly interested in wilderness and wildlife experiences.

Northern Territory

Northern Territory targets 54,000 Chinese holiday visitors by 2030, with current visitor numbers showing 60% growth and spending surging 87% to $23 million. The territory focuses on high-value travellers aged 25-49 through special interest groups.

Australian Capital Territory

Australian Capital Territory currently receives about 750 Chinese travellers weekly, with plans to grow this to 1,500-2,000 visitors weekly. The territory is repositioning itself to capture younger Chinese independent travellers aged 20-45.

The Decline of Traditional Group Travel

The Chinese tourism landscape in Australia is undergoing a dramatic transformation. Traditional group tours, historically the dominant travel method under the Approved Destination Scheme (ADS), are struggling to recover. As of September 2024, only 35,460 ADS visas have been granted under the restarted scheme, with 42,800 travellers from China reporting being on a group tour in 2023-24, spending $102 million.

This represents a significant decline from pre-pandemic levels when 304,900 travellers from China were on group tours with a spend of $658 million in 2018-19. Industry experts note that large-scale group travel, particularly through the ADS, is not recovering at the same rate as other segments.

The Rise of Free Independent Travellers (FIT)

The most significant trend reshaping Chinese tourism to Australia is the explosive growth of Free Independent Travellers (FIT). Current data shows that 96% of Chinese leisure visitors to Western Australia are free independent travellers, compared to only 79% in other Australian states.

The shift is evident across all states, with a clear movement towards FITs and smaller premium groups. These visitors are characteristically different from traditional group tourists, being higher yielding and more mobile, exploring regional areas and developing deeper connections with destinations.

Economic Impact of the FIT Market

The FIT market represents a higher-value segment for Australian businesses. 64% of Chinese leisure visitors to WA are on a return visit to Australia, demonstrating the loyalty and repeat business potential of this segment. These visitors spend more per person and stay longer, with Chinese visitors to Australia averaging 6 to 7 nights per visit in some states.

The shift towards FIT travel also creates opportunities for authentic cultural exchange and economic engagement beyond tourism. 97% of Chinese visitors regularly purchase Australian goods and services after their visit, with spending patterns favouring authentic experiences and premium products.

Victoria's Regional Success Story

Victoria's regional areas continue to experience remarkable growth in Chinese tourism. International travellers in regional Victoria spent a record $645 million in 2024, up 36%, with Chinese visitors contributing significantly to this growth.

Phillip Island has regained its position with Chinese tourists as the number one overseas visitor experience, with 13,115 Chinese visitors attending the Penguin Parade from July to October 2024. The venue now accommodates up to 40 buses each night during peak periods.

Yarra Valley wine tourism continues to attract Chinese visitors, with Chinese interest in Australian wine tours having increased by over 300% in recent years. The region's more than 70 wineries now cater specifically to Chinese visitors with Chinese-Australian cuisine and Mandarin-speaking staff.

Queensland's Diverse Appeal

Queensland's appeal to Chinese visitors extends beyond traditional tourism. Chinese visitors to Queensland spent $833 million in overnight visitor expenditure in 2024, with the state welcoming 143,000 Chinese visitors. The state has developed sophisticated digital marketing strategies and maintains strong connections with Chinese travel platforms.

Tropical North Queensland welcomed 20,000 Chinese visitors in 2024, though this represents only a fraction of the one in four visitors who were Chinese pre-pandemic. The region is working to rebuild its Chinese tourism base through targeted marketing and improved experiences.

Western Australia's Market Leadership

WA's share of Chinese visitors to Australia has increased to 10.0% compared to just 5.5% in 2019.

The state has benefited from China Southern Airlines resuming service from November 2024, providing three flights per week between Guangzhou and Perth. This has supported WA's position as China's fourth biggest market with 75,000 visitors in FY2024.

Northern Territory's Adventure Tourism

The Northern Territory has seen Chinese visitor numbers jump 60% with spending surging 87% to $23 million. The territory targets high-value travellers aged 25-49 through special interest groups including self-drive, photography, fishing, and luxury experiences.

Chinese visitors to the NT typically visit Uluru-Kata Tjuta National Park (54%), Alice Springs (64%), and Greater Darwin (58%). The territory has implemented comprehensive China Ready programs with 45 local businesses completing workshops.

South Australia's Recovery Path

South Australia has seen Chinese visitation reach 32,000 in 2024, up 9.9% compared to 2023, though this remains 5.2% down on pre-COVID levels. The state generally attracts affluent middle-class couples and families from first-tier Chinese cities seeking premium experiences.
The return of China Southern Airlines direct flights from December 2024 is expected to generate over $69 million annually and create 255 full-time equivalent jobs. The direct flights provide 798 additional seats per week.

Understanding Cultural Expectations

Successfully serving Chinese customers requires understanding their evolving expectations and preferences. Chinese visitors approach travel differently from Western tourists, expecting to achieve more in less time while seeking authentic experiences.

Key cultural considerations include:

  • Punctuality is crucial, requiring prompt service at all touchpoints
  • Communication style - provide clear, upfront information and avoid Australian slang
  • Dining preferences - offer share plates and authentic Chinese condiments
  • Digital integration - ensure mobile-friendly booking and payment systems
  • Superstitions - understand number meanings for pricing and room allocation

Practical Business Adaptations

Businesses across all Australian states can implement several practical measures to become more Chinese-friendly:

Language and Communication:

  • Translate signage, menus, and websites into simplified Chinese
  • Create bilingual information materials
  • Use international symbols and simple English for broader accessibility

Payment Systems:

  • Set up UnionPay, which now has over 98% coverage in Australia
  • Consider WeChat Pay and Alipay for seamless transactions
  • Offer multiple payment options to meet diverse needs

Service Delivery:

  • Provide complimentary bottled water and fresh fruit
  • Offer authentic Chinese food options and familiar condiments
  • Consider feng shui principles in room and facility design
  • Ensure high-speed Wi-Fi and mobile charging facilities

Digital Marketing and Engagement

Chinese visitors are highly digital-savvy and rely heavily on mobile platforms for travel research and booking. 85% use one or more online sources for travel planning, with OTAs (Online Travel Agents) continuing to grow in popularity.

Key digital strategies include:

  • WeChat and Weibo social media presence
  • Partnerships with Ctrip and other major Chinese travel platforms
  • QR code integration for instant access to information
  • Mobile-optimised websites with Chinese language options

G'day Friends: Your Partner in Chinese Customer Success

G'day Friends provides Australian businesses with comprehensive support to successfully engage Chinese customers. Their service offering includes bilingual online business profiles, digital QR code systems, and extensive learning resources designed specifically for the evolving Australian-Chinese tourism market.

The platform creates translated business profiles in both English and Chinese, featuring a description of your business, photos, Google map and contact details. These profiles are featured on the G'day Friends online map, making Chinese-friendly businesses easily discoverable alongside tourist attractions and essential services.

Digital Integration and Marketing

The G'day Friends QR code system enables seamless customer engagement, crucial for the tech-savvy Chinese market. When Chinese visitors scan a business's unique QR code, they're instantly directed to the translated business profile on their smartphone. This digital integration can be implemented across websites, social media, email signatures, and printed marketing materials.

Educational Resources and Training

G'day Friends offers over 50 learning resources covering crucial aspects of Chinese customer service, including:

  • How Chinese customers research, find, and pay for goods and services
  • Current Chinese travel trends including the shift to FIT travel
  • Cultural sensitivity training for authentic engagement
  • Digital marketing strategies for Chinese platforms
  • Basic Chinese greetings and communication essentials

These resources help businesses understand the complete customer journey and implement effective strategies for attracting and retaining Chinese customers in the evolving post-pandemic landscape.

National Economic Opportunity

The Chinese tourism market represents an unprecedented economic opportunity for Australian businesses across all states. With $9.2 billion in total spend in the 12 months to March 2025 and Chinese tourism growing at a faster pace than other international markets with a 26% increase in visitors, businesses that prepare now will be positioned to capture significant market share.

The transformation towards FIT travel creates particular opportunities for businesses willing to adapt. Tourism spend in Victoria is expected to reach a record $41.8 billion in 2025, with Chinese visitors contributing significantly to this growth through their higher spending patterns and longer stays.

State-Specific Competitive Advantages

Early adoption of Chinese-friendly practices provides significant competitive advantages across all Australian markets:

  • NSW businesses can leverage the state's $53.2 billion visitor economy and position as the primary gateway
  • Victorian operators can capitalise on the state's $40 billion visitor economy and strong regional tourism appeal
  • Queensland businesses can benefit from $34.7 billion in visitor spending and established Chinese tourism infrastructure
  • WA enterprises can leverage their market-leading recovery and direct flight connections
  • SA operators can prepare for growth from resumed direct flights and premium market positioning
  • Tasmanian businesses can position for wilderness and cultural tourism growth
  • NT operators can target adventure and special interest tourism segments
  • ACT businesses can prepare for the growing young professional Chinese market

Future-Proofing Your Business

Preparing for Chinese customers is not just about capturing current market opportunities - it's about future-proofing your business. Chinese visitors are forecasted to return to pre-pandemic levels in 2027, with an estimated 1 in 5 international overnight visitors projected to come from China by 2029 in Victoria alone.

The shift towards independent travel means that a wider range of businesses across all Australian states will have opportunities to engage with Chinese visitors. Holiday visitors are expected to account for 54% of Chinese visitors by 2029, up from 41% in 2024, indicating growing leisure travel opportunities.

The Chinese tourism market in Australia is experiencing a fundamental transformation that presents both challenges and opportunities for businesses across all states and territories. The shift from traditional group tours to independent travel is creating new possibilities for businesses willing to adapt and prepare.

Australia's strategic position as a preferred destination for Chinese visitors, combined with $9.2 billion in annual spending and 26% growth rates, makes Chinese market preparation not just an opportunity but a necessity for businesses seeking to thrive in the evolving tourism landscape. While Victoria offers significant opportunities with $2.7 billion in Chinese visitor spending, businesses across all states can benefit from this growing market.

Success in this market requires more than just translation services - it demands cultural understanding, appropriate service delivery, and strategic digital marketing. Services like G'day Friends provide the comprehensive support businesses need to successfully engage with Chinese customers, from digital integration to cultural training.

The businesses that recognise and act on this opportunity now will be the ones that prosper as Chinese tourism continues to grow and evolve. With forecasts showing full recovery by 2027 and 1 in 5 international visitors expected to be Chinese by 2029, the question is not whether to prepare for Chinese customers, but how quickly and effectively you can implement the necessary changes to capture this lucrative and rapidly evolving market.

Information and research for this article sourced from the following sites:

https://www.tra.gov.au/content/dam/austrade-assets/global/wip/tra/documents/market-profiles/tra-market-profiles-china-2023-24.pdf 
https://www.tourism.australia.com/en/insights/markets/china/market-insights-snapshot.html
https://www.nsw.gov.au/departments-and-agencies/dciths/ministerial-media-releases/records-tumble-as-nsw-visitor-economy-hits-new-high
https://www.wa.gov.au/government/media-statements/Cook-Labor-Government/WA's-visitor-economy-grows-to-almost-$18-billion--20240626
https://tourism.sa.gov.au/media/k0qlpu4b/satc_marketprofiles_china_2024.pdf
https://www.tourismtasmania.com.au/siteassets/documents/international-market-research/international-market-profile---china.pdf
https://www.austrade.gov.au/content/dam/austrade-assets/global/wip/austrade/documents/china-ads-advisory-panel-23rd-meeting-29-october-2024-communique%20.docx
https://tourism.vic.gov.au
https://www.abs.gov.au/statistics/industry/tourism-and-transport/overseas-arrivals-and-departures-australia/jan-2024
https://www.vtic.com.au/news-item/13208/victoria-smashes-tourism-spend-target-for-2024-more-than-a-year-ahead-of-schedule
https://www.abs.gov.au/statistics/industry/tourism-and-transport/overseas-arrivals-and-departures-australia/jul-2024
https://www.tourism.wa.gov.au/research-and-insights/visitor-statistics
https://lant.nt.gov.au/events/forum-engaging-china-and-chinese-tourists
https://www.statista.com/statistics/620361/australia-international-visitors-tasmania/
https://www.tra.gov.au/en/international/international-tourism-results/international-tourism-results-june-2024
https://www.austrade.gov.au/en/how-we-can-help-you/programs-and-services/china-approved-destination-scheme