Bali Loses Top Spot as Australia’s Preferred Vacation Destination, with a Predictable New Leader Emerging

Renowned for its vibrant cities, ancient temples, and world-class ski resorts, Japan is capturing the interest of Aussie tourists like never before. The statistics reveal that Japan has joined New Zealand and Indonesia as the top overseas destinations for Australians in February.

The data highlights that 113,460 Australians returned from brief visits to New Zealand, while 103,360 traveled back from Japan, and 101,630 arrived home from Indonesia. This marks a significant shift in travel trends, with Japan gaining momentum as a favored travel spot among Australians.

The most popular overseas destinations among Australians in February were New Zealand, Japan and the Indonesia.

The data revealed 113,460 Aussies returned from short trips across the Tasman, 103,360 came back from Japan, and 101,630 touched down from Indonesia.

It marks a 6.2 per cent year-on year increase in the number of Aussies travelling to Japan, and a 4.9 per cent drop in the number choosing to travel to Indonesia.

Indonesia has been sharing the top two spots with New Zealand since May 2022. 

Experts say the increased interest in Japan is down to a range of factors, with some pointing out that February is a great time to ski in Japan and nab a cheap flight. 

‘Japan has grown rapidly over the past three years and when consumers come home raving about their experience, that word of mouth spreads quickly,’ Flight Centre Travel Group leisure CEO James Kavanagh told news.com.au.

Japan has overtaken the Bali as the favourite holiday destination for Aussies (stock image)

Bali has traditionally been incredibly popular with Aussies thanks to its location, great weather and close connections (stock image)

Flight Centre Travel Group leisure CEO James Kavanagh said this was largely due to word-of-mouth recommendations

‘Friends and family recommendations remain the single biggest influence on travel decisions and Japan has benefited enormously from that.’

It’s consistent with the data shared by Melbourne-based travel company, Luxury Escapes, which said hotel booking data from January to March also showed growth.

‘Japan has been growing steadily for Australian travellers, especially since the first wave Niseko ski boom in 2005,’ Luxury Escapes CEO Adam Schwab told the publication.

‘The combination of skiing, incredible culture and a drastically weakening yen has meant that Japan has skyrocketed to the top of millions of Australians travel list and Luxury Escapes booking data also reflects this trend.’

It comes as the Australian dollar hit a 40‑year high against the Japanese yen in February, meaning Japan has transformed from one of the most expensive destinations to one of the best value.

Japan’s official figures indicate over one million Aussies travelled to the nation in 2025, an increase of 15 per cent on 2024.

The ABS data also revealed Aussies have began to shun the United States from their travel plans after travel to the US fell by 4.8 per cent for the year to February 2026. 

In February alone, there was a 9.7 per cent drop in Aussies heading over to the US. It’s understood the data was collected before the US and Israel launched military strikes on Iran on February 28.