Indian visitor arrivals to Australia fell almost 19 per cent in May, marking the sharpest decline among the country’s major inbound tourism markets as higher airfares and disruption to Middle East flight routes weighed on travel.
New figures released by the Australian Bureau of Statistics show 38,960 short-term visitor arrivals from India in May 2026, down from 47,940 in the same month last year. The decline of nearly 9,000 visitors pushed monthly arrivals below the pre-pandemic level of 40,550 recorded in May 2019.
The fall contrasts with the overall inbound market, which remained largely steady. Total short-term visitor arrivals slipped just 0.4 per cent over the year, from 611,180 to 609,040.
India remained Australia’s fifth-largest source of short-term visitors in May, behind New Zealand, China, Singapore and the United States. However, none of the other leading markets recorded a comparable decline. Visitor numbers from China rose 3.9 per cent over the year, while arrivals from Singapore increased 12.6 per cent.
The downturn coincided with disruption to aviation routes through the Middle East following the outbreak of conflict in late February. A large share of flights between India and Australia operate through Dubai, Abu Dhabi and Doha, with restrictions around the Strait of Hormuz and heightened regional uncertainty leading to higher fuel costs, temporary reductions in airline capacity and increased fares through March and April.
India remained Australia’s fifth-largest source of short-term visitors in May, behind New Zealand, China, Singapore and the United States
Those higher travel costs are likely to have had the greatest effect on price-sensitive travellers, particularly people visiting family and relatives and those travelling to see international students, who account for a substantial share of India-Australia passenger traffic.
Victoria recorded the largest numerical decline, with Indian visitor arrivals falling from 19,460 in May 2025 to 16,060 this year, a drop of 17.5 per cent. India remains Victoria’s third-largest overseas visitor market after New Zealand and China.
New South Wales recorded a fall from 14,800 to 12,530 visitors, while Queensland experienced the steepest proportional decline among the larger states, dropping 32.8 per cent from 5,910 to 3,970 arrivals. South Australia and Western Australia also posted lower numbers.
The Northern Territory was the only jurisdiction to record an increase, with Indian arrivals rising modestly from 200 to 230 visitors.
Victoria recorded the largest numerical decline, with Indian visitor arrivals falling from 19,460 in May 2025 to 16,060 this year, a drop of 17.5 per cent. India remains Victoria’s third-largest overseas visitor market after New Zealand and China
Travel in the opposite direction also eased. Australian residents returning from short-term trips to India fell 13.1 per cent, from 38,650 in May last year to 33,570 this May. India remained the tenth most visited overseas destination for Australian residents.
The softer Indian market formed part of a weaker overall travel picture. Short-term resident returns to Australia declined 4.9 per cent over the year to 922,460, while long-term visitor arrivals, covering stays between one and 12 months, fell 13.8 per cent nationally.
The figures come as Australia and India continue to deepen economic, education and tourism ties. Tourism Australia estimates Indian visitors spent about $2.7 billion in Australia in the 12 months to September 2025, making India one of the country’s most valuable international visitor markets.
With the United States-Iran conflict easing and shipping through the Strait of Hormuz resuming, airlines have begun restoring capacity on key Middle Eastern routes. Fuel costs have also retreated from earlier highs, raising expectations that airfare pressures will gradually ease.
Whether visitor numbers rebound through June and July will depend on how quickly fares fall and whether travellers who postponed trips during the disruption return to the market.
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