Where Travellers Are Going to Avoid the Sting of a Weak Aussie Dollar

Japan

With the Aussie dollar at a five-year low, Australian travellers are becoming more cautious about where they spend their money. As a result, many are opting for closer destinations that are easier on the wallet. According to Anna Shannon, founder of Travel Agent Finder, Australians are increasingly booking holidays closer to home. Interestingly, for the first time, Asia has topped the list of most searched-for destinations on the Travel Agent Finder website. So, what does this mean for Aussie travellers, and where are they headed to get the most value for their dollar?

Budget-Friendly Destinations for Australians in 2025

Industry reports support Shannon’s observations, showing that Indonesia, New Zealand, and Japan are expected to be the top travel destinations for Australians in 2025. The budget-friendly nature of many of these locations is a major factor driving the trend, especially with Southeast Asia emerging as a key destination for Aussies looking to stretch their dollars further.

Here’s a breakdown of the countries seeing significant growth in Australian arrivals:

• Indonesia saw 567,330 arrivals, marking a 17% year-on-year growth.
• Vietnam recorded a 35% increase, with 423,620 Australian visitors—well above pre-pandemic levels.
• Thailand continues to draw Australians, offering affordability without compromising on experiences.
• Japan also saw a major uptick, with 807,800 Australians visiting in 2024—an increase of 200,000 from 2019.

For Australian travellers, these destinations offer a sweet spot where the cost of living is lower, and the Aussie dollar stretches further.

Top Destinations for the Aussie Dollar to Go Further

According to Skyscanner, four out of the top five destinations where the Aussie dollar goes the furthest are in Asia. These locations offer Australians the opportunity to experience a rich cultural landscape, all while saving money. Let’s explore some of the most popular budget-friendly options:

1. Indonesia: A Classic for Aussie Travellers

Indonesia remains a go-to destination for Australians looking for great value. The Indonesian Rupiah typically provides Australians with favourable exchange rates, and day-to-day expenses such as accommodation, food, and activities are relatively low, particularly outside tourist-heavy areas like Bali's Seminyak or Canggu. For a less crowded and more affordable experience, travellers can explore Lombok, the Gilis, or Flores—places that often offer even better value.

Bali remains popular, but for something unique, consider Labuan Bajo, an Indonesian island with a town resembling Santorini, offering an unforgettable experience without the hefty price tag.

2. Vietnam: Affordable and Culturally Rich

The Vietnamese Dong continues to offer Australians significant purchasing power. The cost of food, lodging, and local experiences is generally low, making Vietnam an excellent choice for budget-conscious travellers. Popular cities like Hanoi and Ho Chi Minh City remain affordable, but regions like Da Nang, Nha Trang, and the charming town of Hoi An offer lower prices, cultural richness, and a more relaxed atmosphere.

Flights from Sydney to Ho Chi Minh City start from just $232, making it an attractive option for budget travellers.

3. Thailand: Affordable for Every Traveller

Despite being one of Asia’s top tourist destinations, Thailand remains incredibly affordable for Australians, especially if you travel beyond the typical tourist hotspots of Bangkok and Phuket. Lesser-known destinations like Chiang Rai, Isan, and Koh Lanta offer more local, authentic experiences at lower prices, perfect for those seeking budget-friendly adventures without missing out on Thailand’s beauty.

4. South Africa: Value Meets Adventure

South Africa remains a strong destination for Australians, especially with the favourable exchange rate. The South African Rand is currently in a position where 1 AUD buys approximately 12.47 ZAR, a 1.6% increase over the past year. South Africa offers a diverse landscape—from vibrant cities to breathtaking safaris and dramatic coastlines—making it a great option for Australians wanting to experience something truly different without breaking the bank.

Flights from Sydney to Johannesburg start from $881, offering great value for money.

5. India: Affordable and Diverse

India has always been an affordable destination for Australians, with the Indian Rupee offering good value for money. The cost of living is relatively low, especially in areas outside of major cities like Mumbai or Delhi. Whether you’re exploring the beaches of Goa, hiking in the Himalayas, or immersing yourself in the cultural wonders of Rajasthan, India remains one of the most budget-friendly destinations for Australians.

Flights from Sydney to New Delhi start from $372, making India an accessible and diverse travel destination.

Are Aussies Still Willing to Travel Despite the Dollar Strain?

Despite the weaker Australian dollar, Shannon notes that Australians are still determined to make their dream holidays a reality. “We are still seeing people do what they can to make their dream holiday happen, whether that is slashing expenses or even taking out a loan. That trend is still definitely there,” she says.

It seems that Australians are adjusting their travel habits—seeking more cost-effective destinations without sacrificing the experience. Asia is leading the way in offering value, with destinations like Indonesia, Vietnam, and Thailand helping Aussie travellers make the most of their dollar. Whether it’s exploring new cultures or enjoying stunning beaches, these budget-friendly destinations are where Australians are heading to avoid the sting of the weak dollar.

Website: https://www.travelagentfinder.com.au/