International arrivals to Australia: Determinants and the role of air transport policy

• Air transport policy, GDP, and bilateral trade were significant determinants.
• The rise in fuel price did not deter travel to Australia.
• The exchange rates had no significant impact on international arrivals.

Air transport policy, national income, bilateral trade volume, distance, common language and immigration are significant determinants of international arrivals to Australia. The close link between aviation policy and the number of international travellers might suggest that Australia has benefited from the liberalisation of the airline industry globally in recent decades.