The Lunar New Year is in full swing along Darling Harbour.
The warm, humid air carries the scent of sea bass and the sticky sweetness of dumpling sauce. Streets glow in vibrant hues of red and gold as jetpack lion dancers soar across the harbour, and dragon boats thunder through Cockle Bay, uniting Australians of all ages and backgrounds in celebration.
But behind the colour and joy lies a long and evolving history of the Lunar New Year in Sydney and across Australia.
First laying its roots in the 1850s during the gold rush era, Chinese migrants marked the occasion within tight-knit community circles.
By 1862, publications such as The Sydney Morning Herald were reporting on the festival noting that "the coming in of the Chinese new year was duly celebrated on Wednesday week by the Chinese shopkeepers of Sydney with ceremonies peculiar to themselves."
Fast forward to 2026, the festival is now embraced by almost two million Australians who identify with Chinese, Vietnamese, Korean, Malaysian or Singaporean heritage.
Lunar New Year is being celebrated by many cultures.
Dr Daozhi Xu is an ARC DECRA Fellow in the School of Humanities at Macquarie University. She explains that Lunar New Year is a special time for both herself and those who celebrate, noting the unique and diverse ways it unfolds across cities and communities.
"The new year is celebrated through family reunion, enjoying food and fireworks, and visiting temples," says Xu.
"These also include lion dances, public parades, together with various performances and activities in Chinatowns.
"For a long time, Lunar New Year was mainly observed within the Chinese communities. Since the implementation of the multicultural policy in the 1970s, it has been increasingly popular among the general public. Nowadays, the festival has become a symbol of multiculturalism in Australia."
Beyond its ability to foster social cohesion, the festival is also auspicious for Australia's tourism industry and broader economy.
According to ANZ Bank data, customer spending during the 2025 Lunar New Year period rose by 4.1 per cent, with total card transactions reaching approximately 5.1 billion. Data from Destination NSW further captures the festival's growth, with Sydney Airport welcoming more than 600,000 passengers from Greater China during the Lunar New Year period.
Tourism data from 2025 also recorded travel between China and New South Wales increasing by 128 per cent, while Vietnam followed with 104 per cent growth. Travel from South Korea rose by 64 per cent.
In these figures, Australia's story of multiculturalism comes into focus.
Reflecting on the 1901 Immigration Restriction Act, which made attempts to preserve a white nation, and the post-Federation perception of migrants as outsiders to the 'Aussie' milieu, festivals like Lunar New Year offer communities an opportunity for healing.
2026 is the Year of the Horse.
"I think cultural recognition, in particular holidays like Lunar New Year, represent so many good wishes universal among other communities as well," says Xu.
"And as this celebration continues to evolve in Australia, it will definitely help to improve the diaspora of communities and reflect the success of multiculturalism in Australia."
However, there is still room for improvement.
Unlike celebrations like Easter and Christmas, the Lunar New Year remains excluded from Australia's list of official public holidays despite new legislation in NSW introducing an additional Anzac Day holiday.
"I think it would be a great idea to recognise Lunar New Year as a public holiday," says Xu.
"It will significantly enhance cultural diversity and increase the sense of belonging among Chinese diasporas in Australia."
It's within these calls for change that brands and mainstream businesses have begun responding to public pressure, recognising the Lunar New Year as a significant commercial and cultural moment in Australia.
The occasion is now leveraged in a variety of ways, from targeted social media campaigns celebrating Asian cultures to fashion labels incorporating traditional Lunar New Year prints into their collections, and major retailers such as Coles curating their online platforms to spotlight Asian food products at the forefront of dedicated content hubs.
Online, public engagement with Asian cultures has been just as pervasive.
Dubbed the 'Becoming Chinese' trend by social media users, viral TikTok and Instagram reels have showcased non-Asian creators adopting Chinese customs, language, fashion, and traditions, reflecting a broader curiosity about cultural exchange and appreciation.
This enthusiasm also extends into popular culture. Labubu dolls, an elf-like character created by Kasing Lung and popularised through collaborations with Pop Mart have become highly sought-after collectibles among Australian consumers.
While such trends could appear fleeting, they signal something more enduring: Asian aesthetics and cultural references are increasingly resonating with mainstream audiences in Australia.
As for how this will impact the future of the cultural festival?
The Lunar New Year is set to keep growing, driven not only by trends or brands but by communities who, much like the festival's early beginnings, understand its importance as an integral and interconnected part of Australia's multicultural identity and evolving national story.
"We do not see the celebration as individuals, but rather the collective," Xu says.
