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Home»Business & Economy»The local ripple effect that’s fuelling Australia’s food, arts and retail economies
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The local ripple effect that’s fuelling Australia’s food, arts and retail economies

info@thewitness.com.auBy info@thewitness.com.auNovember 21, 2025No Comments2 Mins Read
The local ripple effect that’s fuelling Australia’s food, arts and retail economies
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The local ripple effect that’s fuelling Australia’s food, arts and retail economies

Travellers’ motivations are also changing. Research from tourism industry body Tourism and Transport Forum, suggests that the biggest trend currently for those heading away is ‘intentional’ travel, which it defines as “a meaningful journey that aligns with the traveller’s passions”.

This means that instead of heading to the Victorian Arts Centre’s latest blockbuster exhibition or taking a trip to Taronga Zoo, visitors are choosing experiences that truly pique their interests. From foodies joining a donut-sampling walking tour of Melbourne to fishing aficionados casting a line with a local fisherman in Brisbane’s Southport – the experiences Airbnb has recently begun offering are helping travellers connect more authentically with local communities.

Beyond the city limits

The 2025 Oxford Economics report also shows a rise in regional stays, as travellers move away from city-based accommodation. “Between 2019 and 2024, Airbnb saw a four percentage point increase in the non-urban share of accommodation spend”, Brennan says. “As guest preferences shift towards regional accommodation, local businesses such as neighbourhood eateries and cultural attractions stand to benefit, rather than those concentrated in centralised tourism precincts.”

A new travel niche

The report also indicates that one third of accommodation spend through Airbnb is now outside urban areas, reflecting the desire for more flexible travel options including work. In particular, the opportunity to take extended stays for work or leisure is a key benefit of the short-term rentals. While this includes tradespeople among others, the rise of the digital nomad presents an interesting phenomenon.

“If you’re a digital nomad,” Jarvis adds “You’re a longer staying visitor and you’re going to go down and live in a city for two or three months, and spend your money in the supermarkets, and your yield is going to be a lot higher than someone who comes for two or three days.”

The disbursement of a certain segment of visitors into outlying areas is also giving the short-stay economy stronger sustainability credits, says Brennan. On top of circulating spending within a particular region, hosts also invest in services in the area. “Recurring local purchases and employment by hosts for cleaning, maintenance, and improvements supports small business ecosystems,” he adds.

Combined, this expenditure through and via Airbnb helps foster local economies and support the prosperity of communities across Australia.

For further information on the Oxford Economics’ research, visit https://www.airbnb.com.au/e/ppap_australiaimpact.

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