It’s now clear the weaker Aussie dollar is having a major impact on travel patterns with outbound growth by Australian travellers “grinding to halt” while domestic holidays grow in popularity.

These are among the findings of Deloitte’s Tourism and Hotel Market Outlook for the first six months of 2015, which also reveals inbound tourism remains strong while corporate has surged 14%.

“After a decade growing at an average rate of 11% a year, growth in outbound holiday travel by Australians has ground to a halt,” says Lachlan Smirl, Partner at Deloitte Access Economics.

“As the dollar has fallen, travellers have adjusted travel across all feasible dimensions.

“They have opted for cheaper overseas destinations, shorter trips, reduced per day spending and also chosen to holiday closer to home.

“The switch back to local destinations has been the slowest of these factors to emerge as a new holiday trend and it’s clear there remains considerable upside for the local leisure market.”

Tasmania has been the fastest growing domestic market, with a 27% increase in local holidaymakers.

The traditional holiday markets of Gold Coast and north Queensland have also performed strongly.

Looking ahead, Mr Smirl said the future looks positive.

“The outlook for international visitor growth remains strong, albeit moderating a touch as forecasts for global economic growth have been wound back, increasing at an annual rate of 5.2% to Dec 2017.

“Our forecasts for domestic travel have been upwardly revised, with both visitor numbers and nights now forecast to grow 2.7% per year” over the next two years.

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