How dependence on tourism affects local economic resilience

AI could transform local economies
Informed  Decisions

Informed Decisions

Contributor

  • Tourism generates important employment and supports local economies, but heavy reliance on it can create vulnerabilities — from housing pressures and workforce shortages to exposure to shifting visitor demand and external shocks.

  • This interactive map lets councils quickly see how reliant their communities are on tourism jobs, providing a starting point for resilience planning.

  • For a deeper, tailored view of how broader forces like AI, global markets, and demographics will shape local economies, councils can commission an Economic Resilience Report; our bespoke analysis of risks, opportunities and pathways to long-term economic resilience for local governments.

FUTURE ECONOMIC RESILIENCE

Explore how reliant your community is on tourism jobs

Since the sharp fall during COVID-19, Australia’s tourism sector has rebounded strongly. Between 2019 and 2024, the sector added $17.8 billion in value and created 58,600 new jobs. Domestic travel led the recovery, with Australians spending $142 billion on trips in FY2024, a 40% increase since 2019. International markets are also close to pre-pandemic levels, and visitors spending more per trip and seeking higher-quality, sustainable, and experience-based activities.

Yet this recovery also highlights the sector’s vulnerabilities to external shocks and regions heavily reliant on tourism remain exposed if demand slows again.

We have created an interactive map that allows you to see the share of jobs in your local government area that are reliant on tourism. This tool serves as a practical starting point for understanding your current position and informing your long-term economic planning.

 

 

 

Why this matters for your region

Tourism’s rebound is creating opportunities, but also exposing risks. While jobs are growing nationally, the gains are concentrated in a few regions, leaving others stagnant or in decline. At the same time, shifting visitor preferences toward short trips, eco-tourism, and immersive experiences require new investment, while strong visitation growth is adding pressure on housing, services, and infrastructure in many communities.  At the same time, climate risks are making tourism assets increasingly vulnerable

Building economic resilience means understanding the risks and taking them into consideration when creating strategies.

Of course, tourism is just one piece of the puzzle; in the coming years, factors such as climate change, AI, global markets, and demographic shifts will all influence local economies.

That's where our Economic Resilience Report comes in. Developed through a bespoke consulting engagement, the report equips councils with a clear, evidence-based understanding of their unique risks and opportunities, providing a foundation for making informed decisions about the future.

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