Visitor Economy Industry Forum: Adelaide’s Tourism Sector Strengthens as Developers and Travellers Invest in the City

Tourism spending in South Australia continues to consistently surpass expectations, according to new data released at the Adelaide Economic Development Agency’s Visitor Economy Industry Forum.

Figures shared at the event, held on 18 November 2025 at the Pullman Adelaide, revealed that visitor expenditure last quarter was $200 million above the South Australian Tourism Commission (SATC)’s expected figure of $9.7 billion, building on strong performance over the last financial year.

Presenters at the forum, which included Jordon Tomopoulos, Economic Research Advisor, Data and Insights at AEDA, and Peter Reid, Commercial Analyst, Research and Insights at SATC, said the rise highlighted strong confidence in the sector following the COVID-19 pandemic.

Based on new data, travellers were shown to be booking trips well in advance and were eager to explore everything the city had to offer.

They explained the trend had also been driven by developers investing more in hotel redevelopment and refurbishment.

Other speakers at the event included Gemma Nelson, Tourism Industry Development Advisor at AEDA, Chris Plummer, Creative Director, Marketing at SATC, and Kate Gould, Chief Executive Officer at the Adelaide Festival Centre.

Read on to discover more about how South Australia and the city’s visitor economy are performing, how AEDA is supporting the sector and how operators can promote themselves by tapping into local campaigns.

Quick reads:

South Australia: Where Tourism Numbers and Experiences Soar

The City: Where Tourists Explore the Outdoors and Hotel Room Numbers Rise

New Attractions, New Adventures, Same Charm

South Australia Goes Back to Basics to Show Tourism the Simple Pleasures

Modern Appeal, Timeless Culture: Adelaide’s Tourism and Arts Sector Reimagined for a New Generation

Mr Reid said the increase in tourist spending, based on SATC figures, consisted of $2.4 billion on day trips, $2.8 billion from intrastate overnight stays, $3 billion from interstate overnight stays and $1.7 billion from international visitors.

Although visitor numbers have declined slightly, international expenditure is at the highest level its ever seen.

Mr Reid also expected visitation to increase as more aviation seats come online in the next few months, with Cathay Pacific’s return already boosting numbers with direct flights to and from Adelaide Airport.

Since 2024, the total number of aeroplane seats has increased from 8,849 to 12,956, while the number of international flights has risen from 33 to 50. By the end of December, Mr Reid predicted there will be a further boost, with a total 17,500 seats available, thanks to services such as China Southern Airlines to Guangzhou, soon to commence United Airlines from San Francisco and China Eastern Airlines just announcing a direct route between Adelaide and Shanghai in 2026.

“We are moving in the right direction and will be back to where we were pre-COVID-19,” Mr Reid said.

Mr Reid also explained that lower interest rates have had a positive impact on the tourism sector, leading to more domestic stays due to increased discretionary income. Falling rates have led to a weaker Australian dollar, making overseas travel far more expensive for Australians, which in turn has increased domestic demand.

Decreased borrowing costs also encourage tourism operators to invest in new facilities, expand their offerings or refurbish accommodation.

Mr Tomopoulos said that almost one in 10 city users were tourists, and they were high-yielding customers who spent approximately $229 per day.

They rate the city high for convenience, cleanliness and safety, enjoy a café or outing, and are drawn to engaging outdoor experiences such as the Adelaide Botanic Garden and River Torrens.

As demand to visit Adelaide increases, so does the need for hotel rooms, with around a 28 per cent growth in rooms over the past 3.5 years, or an additional 1,500 rooms online.

Mr Tomopoulos said the industry’s confidence is evident not only in the addition of new rooms, but also in significant operator investment, noting Amora Hotels & Resorts’ $60 million acquisition of the Hilton and the Mayfair’s $75 million sale with plans for a $23 million refurbishment.

“These numbers show the confidence, and not just for new hotels, but also existing hotels looking to pull their socks up to compete in the hot market.”

He also noted that hoteliers had competitive pricing, which was “great news for tourists”.

“Even with dropping the price slightly... the number of rooms (booked) exceeded last year and the previous years,” Mr Tomopoulos said.

“Hotels have been able to share the load of tourists... but prices have only dropped to a strategic level where there is still good revenue per available room.”

Adelaide is gearing up to shine even brighter on the global stage, with AEDA leading the charge to position the city as a vibrant, must-visit destination, said Ms Nelson.

“We don’t want Adelaide to be left behind,” Ms Nelson said.

“We want amazing ways to tell Adelaide’s story in a new way that attracts audiences, business events, youth, and different demographics.”

AEDA is currently investigating opportunities to attract year-round tourism and develop contemporary experience products that reflect modern visitor trends and appeal to diverse demographics, with the goal of positioning Adelaide as an unmissable destination on any Australian itinerary.

AEDA recently backed tourism operators through its Tourism Accelerator Program, where select operators created new, bookable tourism experiences across a wide range of interests.

The team are also evaluating various CBD sites, including adaptive re-use locations, which will further encourage activation and elevation of Adelaide’s unused spaces.

Ms Nelson touched on AEDA’s exciting new Visitor Experience Centre, which will be an immersive destination where tourists and locals alike can plan their day in Adelaide and find “a real sense of place”.

The centre will combine cutting-edge technology with a special nod to Adelaide’s rich history and culture, inspiring visitors to experience something new in the city and extend their stay for longer.

Creative Director Mr Plummer was instrumental in the development of SATC’s new Simple Pleasures campaign, and said the campaign has been designed to be long-term focused, creatively distinct and authentically South Australian.

Its goal is to bring South Australia’s scenery, people and stories to life in a way that shapes global perceptions and leaves a lasting impression on both domestic and international visitors. Instead of encouraging traditional sightseeing, it invites travellers to slow down and enjoy the places and experiences that make South Australia unforgettable.

Mr Plummer said Oscar Wilde’s musing, “simple pleasures are the last healthy refuge in a complex world” captures the idea that as the world grows more complicated, South Australia offers a place of genuine escape.

“We can't continue to serve up the same type of communication we've had time and time again,” said Mr Plummer.

“That's not going to move the dial, so we're going to do things dramatically differently. We're going to do that through expressing South Australia's true character.”

The campaign encourages operators to share authentic, heartfelt stories about their business through their own experiences, rather than applying a brand and repeating the same narrative.

“Just by being a South Australian product or experience you are on brand, because the brand is only there to try and reflect that true, authentic South Australian character.”

Temporarily closed since August 2025, Adelaide Festival Centre CEO Ms Gould shared that renovations were progressing well, as were strategies to redefine South Australia’s arts and culture sector.

Ms Gould wants to see events running year-round, greater diversity on stages and the ability to attract shows and experiences that might once have bypassed Adelaide.

“We want younger audiences to be attending our performances, because our demographic is too highly placed,” Ms Gould said.

“We need to imagine what the next generation will want to consume arts and culture.”

She said the visitor economy would benefit from an “always-on” approach to arts and culture, and that the team is exploring how the Adelaide Festival Centre can help deliver this.

In addition to refurbishments in the main auditorium and planned upgrades to the Dunstan Playhouse and Space Theatre, an exciting new concept restaurant is in the works for the cultural institution.

In an Australia-first, the Centre will also expand its offering to deliver a new theatre hospitality experience. This will include a beverage ordering system for interval pick-up, plus grazing stations across foyers, featuring signature dishes and South Australian produce, where guests can grab a gourmet local bite to enhance their visit.

“The experience of going to the theatre (now) isn’t just seeing a show, leaving and having an ordinary meal,” Ms Gould said.

“It is about coming for an event, a moment.”

Renovations are slated for completion in February 2026.

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