The strength of the Aussie dollar is adding to the popularity of destinations like Japan, Sri Lanka and Vietnam among holidaymakers who want to make the most of their travel money.

Our fascination with Japan is not exactly new, but it shows no sign of abating. Last year, for the first time, the number of Australian visitors broke the one million mark – a 15 per cent increase on 2024.

Data just released by the Japan National Tourism Organisation shows that the country welcomed 121,300 Aussies in December alone.

While accessibility and attractions such as cherry blossoms, temples and skiing are all part of the appeal, another big plus is the increased strength of the Australian dollar against the yen.

“From the latest ABS (Australian Bureau of Statistics) research, we can see a shift, as Asia becomes increasingly popular for Aussie tourists at the expense of both Europe and the US,” said Tristan Dakin, ANZ country manager at travel card company Wise.

“While there are several factors behind this, it’s hard to ignore the impact of currency fluctuations, given the clear correlation we’re seeing between the choice of destination and places where the Aussie dollar is strong.”

The ABS data put Japan third in the top 10 short-term destinations for Australian travellers in November 2025, showing numbers have grown consistently over the past six years.

Indonesia is at the top of the list – every second person did seem go to Bali last year – although its visitor numbers were slightly down from 2024. New Zealand and Vietnam are among other popular countries where short-term visitor numbers were up over the past 12 months, with Vietnam now more popular than the UK.

Colombo in Sri Lanka is proving popular with Australian travellers.

Dakin noted that Japan, Vietnam and Sri Lanka are among the fastest-growing destinations in terms of their appeal to Aussie tourists – “but this shouldn’t come as a surprise, considering how much further the Aussie dollar is stretching there when compared to last year”.

In the past 12 months, he said, the dollar had climbed roughly 9 per cent against the Japanese yen, 12 per cent against the Vietnamese dong and nearly 13 per cent against the Sri Lankan rupee.

At the same time, for those looking for a holiday destination even closer to home, the dollar gained almost 5 per cent on the New Zealand dollar, with $A1 currently buying you around $NZ1.16.

Sri Lanka and Vietnam also featured among five “destinations on the rise” in the recent Virtuoso Luxe Report, which named Japan as the top trending international destination for Australians in 2026.

It ranked Tokyo and Kyoto as the world’s top two cities (ahead of Paris), with the country especially popular among solo travellers and families, but also making the top 10 for honeymoons and cruises.

According to the Japan National Tourism Organisation, it wasn’t just the popular “golden route” of Tokyo, Osaka and Kyoto that showed a significant increase in stays over the past 12 months, but also prefectures such as Fukuoka, Gifu, Niigata and Iwate.

“During 2026, we are encouraging Australian travellers to take the time to travel far and wide and discover the lesser-known regions of Japan, from rural retreats and remote hiking trails to coastal camping and tranquil islands,” said Naoki Kitazawa, executive director for JNTO Sydney.

Meanwhile, for those exploring affordable destinations, travel app Skyscanner has compiled a list of the 10 destinations with the lowest fares in 2026. The good news is that Sri Lanka makes it onto that one, too.