Australian restaurants and hospitality businesses are reaping the rewards of the summer holiday season, with dining establishments among the biggest winners of an 80% spending surge that pumped an additional $84 million into local tourism economies.
New analysis from NAB reveals that restaurants ranked among the top-performing categories during the critical two-week period from December 20 2025, to January 4 2026, when millions of Australians descended on coastal holiday destinations.
The data, drawn from nearly 500,000 merchant terminal transactions across 20 popular beach towns, shows hospitality spending skyrocketed as vacationers traded home cooking for dining out experiences in destinations like Lorne and Lakes Entrance in Victoria, St Helens and Swansea in Tasmania, and Jervis Bay in New South Wales.
“Millions of Aussies are in holiday mode and enjoying a well-deserved break,” said Julie Rynski, NAB Executive for Metro and Specialised Business. “The mass exodus from capital cities to holiday hotspots is crucial for smaller, local economies.”
Peak season performance
The summer rush represents a make-or-break period for many restaurant operators in tourist-dependent towns, with Rynski noting that “this peak period contributes to much of their annual turnover.”
The spending analysis compared the holiday fortnight to a typical two-week period in May, revealing the dramatic seasonal shift that defines business for coastal hospitality operators. During an average May fortnight, approximately $104 million was spent across key tourism industries in the surveyed towns. That figure jumped to $188 million during the peak summer period.
Alongside restaurants, retail stores and accommodation providers saw substantial increases, with some locations posting eye-popping gains. Lakes Entrance in eastern Victoria recorded a more than 600% increase in accommodation spending, while Margaret River in Western Australia saw retail sales surge 786%.
Staffing up for success
The holiday boom creates significant employment opportunities, with operators bringing on seasonal staff to handle the crowds.
Robert Bartlett, founder of Jervis Bay Distilling Co, described the intense but rewarding nature of peak season. “Summer is by far our busiest season. Locals and visitors alike flock to the cellar door, and orders from local venues really spike,” he said.
“We bring on extra hands and pull together as a team to keep up with demand. There’s such a great energy in town—people are relaxed, happy, and enjoying themselves.”
Bartlett added that being part of visitors’ holiday experiences makes the hard work worthwhile: “It’s a buzz to be part of their holiday, and we love helping create those great summer memories.”
Extended season ahead
While many Australians returned to work this week, the window of opportunity remains open for hospitality operators. NAB’s business customers indicate they expect strong trade to continue through the Australia Day long weekend on January 27.
The data highlights quirky local trends as well, including what NAB dubbed a “bakery blitz” in Jervis Bay, suggesting that casual dining and grab-and-go food options are capitalising on beach-goer traffic alongside full-service restaurants.
The analysis underscores the vital role tourism plays in sustaining regional food and beverage businesses, with the summer spike providing crucial revenue that helps operators weather quieter off-season months.
