Move over, Bali: the new #1 Asian destination for Aussie travellers revealed

Japan has overtaken Bali as Australia's favourite Asian destination for the first time, heating up a long-building traveller debate: which is better?

In February, 103,360 Australian travellers returned from Japan compared with 101,630 from Indonesia (in which Bali is the most popular destination), Australian Bureau of Statistics data shows.

The number-one destination for Aussies in February was New Zealand.

According to Flight Centre Travel Group global leisure CEO, James Kavanagh, a number of factors are tipping the scales in Japan's favour.

"The AUD to Yen exchange rate has been giving Australian travellers genuine value on the ground, airfares have become more competitive as connectivity improved, and February is a smart time to go - particularly for skiing - because you're getting great snow conditions without the peak season price tag," Mr Kavanagh told Explore.

But what's really driving the Aussie exodus to Japan is word of mouth.

"Japan has grown rapidly over the past three years, and every returning traveller comes home raving about their time there," Kavanagh said.

"Friends and family recommendations remain the single biggest influence on travel decisions, and Japan has benefited enormously from that cycle of advocacy. It's now creating its own momentum, and I expect that to continue."

Dr Garth Lean, senior lecturer in tourism and heritage studies at Western Sydney University, said Japan offers "a kind of safe novelty for Australians".

"It feels different, distinctive and exciting, but it is now much more familiar and achievable than it may once have seemed," he said.

Whether you choose Japan or Bali for your next holiday all comes down to your individual holiday preference. What kind of break would you like?

"If someone wants a broader all-round trip with cities, regional travel, seasonal variety, food and a stronger sense of contrast, I would probably lean toward Japan," Dr Lean said.

"It offers more obvious variety across the year. A destination that can draw people for powder snow in winter, blossoms in spring and autumn leaves later in the year has a very strong tourism proposition. Japan is also a very safe country."

He said Indonesia - particularly Bali - is stronger in a different way.

"It is easier for many Australians to use as a quick break, a repeat trip, or a warmer holiday," Dr Lean said.

"Bali and Indonesia have a lot of resort infrastructure, so they may be the better option for a beach-focused resort break. Indonesia is also a cheaper destination overall and will likely appeal more to budget-conscious travellers."

If you're after beachy, wellness and surf culture vibes, Indonesia is your go-to.

But for food, snow, blossoms and autumnal blossoms, Japan would suit you best.

February is a big month for snow bunnies in Japan, so that has likely affected the number of people heading to the Land of the Rising Sun for the last month of the northern winter.

But Japan's star has been rising for a long time now.

"More than 1 million Australians visited Japan in 2025, which suggests knowledge, confidence and word of mouth have all grown," Dr Lean said.

he said Japan remains strong, but he would "hesitate to say" it has permanently overtaken Indonesia.

"February 2026 was very close, and Indonesia still has enormous advantages in proximity, ease and habitual appeal for Australians," he said.

"Overall, Indonesia also remains cheaper than Japan and will continue to appeal to more budget-minded travellers."