Aussies are going to this Asian hotspot instead.
Australians' love affair with Japan continues as Tokyo remains the favourite international summer holiday destination for Aussies.
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However, in a surprise twist Singapore is now the second most popular international summer holiday destination, overtaking Bali, according to the Summer Travel Outlook by Expedia and Wotif.
Bali now places third, followed by Osaka in Japan, Dubai in the UAE, Queenstown in New Zealand, Bangkok and Phuket in Thailand, Nadi in Fiji and Honolulu in the USA.
These placings show Aussies continue to be lured by island holiday spots which offer a wide range of all-inclusive accommodation options.

It's a global trend, with almost half of travellers across 19 countries polled by Expedia and OnePoll saying they are likely to stay in an all-inclusive hotel in 2025.
When it comes to trending overseas destinations, Hakuba in Japan, Port Villa in Vanuatu, and Taipei in Taiwan had big hikes in numbers, the summer report showed.
It also revealed the most popular domestic destinations, excluding capital cities: Gold Coast, Sunshine Coast, Port Stephens, Cairns and Coffs Harbour.
Great value can be had with summer accommodation rates under $250 a night in Darwin in NT, Launceston in TAS, and Orange in NSW, the report found.

Overseas, the destinations with the best accommodation rates under $350 are Ho Chi Minh City in Vietnam, Las Vegas in USA, Kuala Lumpur in Malaysia, Auckland in New Zealand, and London in the UK, according to the report.
Expedia Group travel expert Sarah King said if you're flexible with your dates, you can grab bargains.
For instance, travelling overseas in late January can be almost 120 per cent cheaper than the lead up to Christmas week, she said.
"Our hot tip for domestic travel is to consider season swapping by visiting a destination in its traditional off-season," Ms King said.
"For example, Tropical North Queensland regions like Townsville or Cairns can offer up to 22 per cent off over the summer, as well as unique experiences such as wet season wildlife and waterfalls."
The best day to travel domestically to avoid the crowds over summer is a Sunday, and the least busy week to travel is the second last week of January, according to Wotif.
January 26 and Sundays are generally the cheapest days to travel internationally over the Christmas holidays, and avoid December 23 if you can, because it is likely to be the busiest, Wotif said.
A report from Compare the Market found flights out of Sydney and Melbourne are generally cheaper from December 3 to 5, and 10 to 13.

The Summer Travel Outlook naming Singapore the second most popular international holiday destination for Aussies coincides with Singapore Airlines' low-cost brand, Scoot, announcing three new Asian routes from Singapore.
Phu Quoc in Vietnam, Padang in Indonesia, and Shantou in China, will be serviced by Scoot with flights direct from Singapore from December and January.





