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Indonesia is Australia’s favorite overseas holiday destination, beating New Zealand for the first time since tourism records were kept.

About 1.37 million Australians traveled to Indonesia last year, 86 per cent of them went for a holiday, while 1.26 million traveled to New Zealand, according to the latest ABS statistics.

New Zealand has consistently been the most popular destination since the ABS started recording tourism data nearly 50 years ago, with Indonesia overtaking the US as the runner-up since early 2014.

Australian tourism to both countries reached its peak in 2019 before sharply declining during the Covid-19 pandemic.

Both have shown significant tourism growth since 2020 but while Indonesia has returned to its pre-pandemic peak, New Zealand’s growth has slowed since 2022.

New Zealand’s post-Covid growth has been hurt by major airlines shrinking their fleets during the pandemic, according to Australian Travel Industry Association chief executive Dean Long.

”[Virgin, Qantas, Air New Zealand’s] supply hasn’t really changed