After a year of increasing interest rates and with inflation hovering above seven per cent as airfares remain high, just 6.5 per cent of holiday-makers are heading overseas this summer.

A national survey of 1500 people commissioned by Tourism and Transport Forum Australia found nearly three-quarters of people are planning a domestic holiday, with most staying in their own state.

One in six say they will take their pet with them and the most popular accommodation choice is bunking down at a friend or relative’s place.

However, the number of Australians travelling overseas is set to rise to 28 per cent within the next year, with Europe the most popular destination, followed by New Zealand and Bali.

TTF chief executive Margy Osmond says domestic tourism is booming, with a bumper summer expected.

“Thank you to all those Aussie travellers who have decided to explore their own backyard and help our local tourism operators recover,” she said on Thursday.

“While more Australians are looking to travel overseas next year, especially young people, we’re also expecting more international visitors to head Down Under.

“This will be the first summer in Australia without any restrictions since the pandemic, so we should finally see the influx of overseas tourists we’ve been waiting for.”

KEY STATISTICS:

* 46 per cent will holiday by the beach

* 63 per cent will holiday with family

* 33 per cent will stay with a friend or relative

* 31 per cent will stay in a hotel, motel or serviced apartment

* 14 per cent will stay in an Airbnb or Stayz

* 13 per cent will stay in a caravan park or campground

* 72 per cent will holiday in Australia – 54 per cent in their own state, and 18 per cent interstate

* 6.5 per cent will go overseas, 21.5 per cent won’t go away

* 28 per cent will travel overseas within the next year