Australia's Tourism Boom: ASX Consumer Discretionary Stocks to Watch in 2026

Australia's tourism industry is booming again, and the numbers back it up.

International visitors to Australia reached 8.4 million trips in the 2024-25 financial year, up 5.5% on the year before, according to Tourism Research Australia. The broader tourism industry is now valued at $213 billion in 2026 and has been growing at nearly 10% per year since 2021.

For investors watching ASX consumer discretionary stocks, this is not just a post-COVID snapback. The forces driving this recovery look structural and durable. That matters because it changes how you think about the earnings potential of ASX-listed tourism and travel companies.

Three Reasons This Tourism Recovery Is Different

China Is Back

Before COVID, Chinese tourists were Australia's biggest spenders. They are returning fast and spending more than ever.

For the year ending September 2025, Chinese visitors spent a record A$12.3 billion in Australia, up 29% on the prior year, according to Tourism Australia. China now ranks first in total visitor expenditure and second in arrivals. Education-related travel is the largest single contributor, while holiday travel grew 22% over the same period. Visitors travelling to see friends and relatives stay an average of 54 days, making them one of the most economically valuable visitor segments Australia has.

The recovery still has room to run. Chinese visitor numbers remain below pre-COVID peaks, which means there is meaningful upside ahead if outbound travel from China continues to normalise.

More Flights, Easier Visas

Getting to Australia has become simpler. Expanded flight routes and smoother visa processing have brought more travellers through the door from key markets. New Zealand remains the single largest source of visitors, accounting for around 14% of all January 2026 arrivals. The United Kingdom and the United States also feature strongly in the top markets.

More connections mean more options for tourists, and more volume for the companies that service them.

Australia Is Winning Business From Other Destinations

One trend worth watching: the United States is seeing a decline in inbound tourism due to policy changes and a more uncertain travel environment for visitors. This is redirecting travellers from Europe and Asia who are looking for alternatives. Australia, with its reputation for safety, quality experiences, and world-class natural attractions, is well placed to capture that demand.

‍

Where the Earnings Opportunity Sits

Not every business benefits equally from rising visitor numbers. The most direct earnings leverage tends to sit with travel booking platforms and agents, who earn fees on every transaction, and accommodation and hospitality providers, who benefit from higher occupancy and longer stays. The average international visitor now stays around 12 days, which is meaningful for operators at the premium end of the market.

Retail and consumer experiences benefit too, though more indirectly.

Two ASX Consumer Discretionary Stocks Worth Watching

Flight Centre Travel Group (ASX: FLT) is the clearest large-cap play on Australian travel. In its half-year results for FY2026, the company reported total transaction value up 7% to $12.5 billion and revenue of $1.41 billion. Underlying profit improved, and the company declared a fully franked interim dividend of $0.12 per share. Management reaffirmed full-year guidance of $315 million to $350 million in underlying profit before tax, which implies around 15% year-on-year growth at the midpoint. That signals genuine confidence in the booking pipeline ahead.

Web Travel Group (ASX: WEB), formerly Webjet, operates a global B2B hotel marketplace called WebBeds. In its H1 FY2026 results, WEB reported TTV of $3.2 billion, up 22% on the prior year, with trading in all key regions running significantly above market growth rates. Management is guiding for a record year, with FY2026 underlying EBITDA expected to be between $147 million and $155 million. WEB's international reach means it captures hotel booking volume from Australia's inbound markets directly.

Both companies carry risks. The Australian dollar has strengthened about 10% against the US dollar over the past 12 months, which makes Australia slightly more expensive for visitors from dollar-linked markets. Any shift in China's outbound travel policy, a global economic slowdown, or a deterioration in Australia's diplomatic relationships could also weigh on the outlook. These are live variables that investors should keep in mind.

Key Takeaways

• Australia welcomed 8.4 million international visitors in FY2024-25, supported by structural drivers, not just post-COVID pent-up demand
• Chinese visitors spent a record A$12.3 billion in Australia for the year ending September 2025, making China the largest market by expenditure, with further recovery still ahead
• Direct earnings leverage sits with travel booking platforms and accommodation providers, making ASX: FLT and ASX: WEB the most relevant names to watch in the ASX consumer discretionary space

For investors looking to position around the broader market opportunity, understanding which sectors carry genuine earnings momentum is the starting point.

‍

Download ASR's free Top-3 Stocks and Market Outlook Report for quarterly analysis, sector insights, and stock ideas across the ASX. 

‍