Regional Australia can’t afford to wait for the tourists to come back

As cost-of-living pressures and ongoing changes to international travel continue to reshape how Australians holiday and spend, leading regional development and agritourism advisory Sparrowly Group says regional Australia cannot afford to sit back and wait for tourism to recover on its own.

Instead, communities are increasingly turning to agritourism and experience-led regional travel, as a practical way to strengthen local economies, diversify income and create new reasons for people to visit, stay and spend in the regions.

Food trails, farm stays, paddock-to-plate experiences, nature-based wellness retreats and on-farm tourism are no longer niche offerings. Across Australia, more regions are developing coordinated agritourism strategies to help local operators build resilience, create jobs and attract visitors seeking authentic and connected travel experiences.

The CSIRO projects demand for agritourism experiences could reach $18.6 billion by 2030 and, according to Tourism Research Australia's agritourism report, agritourism activities were included in 18.5 million trips in 2024, representing six per cent of all trips in Australia. These trips accounted for $20.3 billion in spending, representing 14 per cent of total tourism expenditure, with 75 per cent of trips involving agritourism activities taking place in regional Australia. 

Adding to this momentum, the Global Wellness Institute (GWI) earlier this year released its annual Country Rankings report, revealing Australia is now ranked ninth in the world as a wellness market. Spending on wellness in Australia reached $141 billion in 2024, with the sector recording 7.6 per cent annual growth between 2019 and 2024. 

Sparrowly Group Managing Director and regional development expert Giovanna Lever (pictured) said the figures reinforced the growing importance of regional Australia not only as a tourism destination, but as a critical part of the nation's economic future. 

"This week is Australian Made Week, which is a timely reminder that much of Australia's food, fibre and natural resources come from regional communities," Ms Lever said. 

"Australia has built a global reputation on the quality of our produce, and increasingly visitors want to experience where that produce is grown, made and shared. Tourism is part of that conversation because visitors create spending, jobs and opportunities that support entire communities, not just tourism operators." 

"For example, farming communities have always found innovative ways to diversify and connect directly with consumers. Increasingly, that includes opening farm gates so visitors can buy direct, enjoy local food experiences or stay on-farm. 

"Whether it's getting hands-on at a dairy in NSW, bathing in Outback Queensland's artesian springs or spending a day picking your own flowers in regional Victoria, Australia's agritourism experiences give travellers a genuine connection to our regions." 

Ms Lever said agritourism has given farmers and their children a genuine pathway to grow the family business and a reason to stay or return to the land. 

"Agritourism goes beyond holidaying. It helps regions move forward by enabling farmers to turn their everyday work into meaningful visitor experiences," she said. 

"That diversifies income, builds skills, keeps money local and strengthens community identity and connections. It is not about replacing agriculture, and it is not for everyone. But where it works, it can create a complementary revenue stream that helps farm businesses remain viable through difficult seasons and into the next generation." 

"We are also seeing growing overlap between agritourism, wellness tourism and nature-based travel as more visitors seek slower, more meaningful experiences that help them reconnect with food, people and place." 

Ms Lever said growing consumer interest in food provenance, sustainability and reconnecting with nature was helping drive demand for immersive regional experiences. 

Australia's growing reputation in regional tourism and agricultural diversification was recently recognised internationally, with Sparrowly Group receiving the award for Best Institute/NGO/Organisation in Agritourism Research and Development, Training, Education and Skill Development at the World Agritourism Awards. 

The recognition reflects Sparrowly Group's work alongside regional development organisations, tourism operators and the agriculture sector to help farmers and regions successfully develop, launch and sustain agritourism experiences. 

The awards will take place June 23rd to 25th in Aberdeen, Scotland, as part of the Global Agritourism Conference bringing together farmers, tourism operators and industry leaders from around the world.