Working holiday visa changes drive backpackers away from Far North Queensland
Far North Queensland tourism, hospitality and farming leaders warn new working holiday visa rules could worsen worker shortages and leave businesses unable to meet demand.
PEOPLE & COMMUNITY
Far North Queensland tourism and agricultural leaders say changes to Australia’s working holiday visa program are already driving backpackers away from the region and could create serious workforce shortages.
The concerns come as the region enters a busy tourism period, with strong visitor demand during the school holidays but growing uncertainty about whether hotels, restaurants, farms and tourism operators will have enough staff to operate at full capacity.
Geoff York, chief executive of Crystalbrook Collection, said some second-year working holiday-makers had already left the region after the Federal Government announced changes to the visa system.
“We’ve had some second-year working holiday-makers depart already,” Mr York said.
Working holiday-makers account for about 45 per cent of the 500 employees across Crystalbrook Collection’s Cairns hotels, restaurants, bars and day spa.
Mr York said many workers were reluctant to remain in regional Australia for another six months when doing so would only give them the opportunity to enter a ballot for a potential third-year visa.
“The odds are one in six for qualifying, which is not favourable,” he said.
He warned that businesses could face staffing problems similar to those experienced during the COVID-19 pandemic, when tourism operators struggled to reopen at full capacity.
Geoff York, chief executive of Crystalbrook Collection, said some second-year working holiday-makers had already left the region after the Federal Government announced changes to the visa system.
“We’ve had some second-year working holiday-makers depart already,” Mr York said.
Working holiday-makers account for about 45 per cent of the 500 employees across Crystalbrook Collection’s Cairns hotels, restaurants, bars and day spa.
Mr York said many workers were reluctant to remain in regional Australia for another six months when doing so would only give them the opportunity to enter a ballot for a potential third-year visa.
“The odds are one in six for qualifying, which is not favourable,” he said.
He warned that businesses could face staffing problems similar to those experienced during the COVID-19 pandemic, when tourism operators struggled to reopen at full capacity.
“I manage two hotels with 300 rooms each, yet I may only be able to fill 250 of those,” Mr York said.
Under the existing working holiday visa system, backpackers seeking a second-year visa must complete 88 days of specified work in regional or remote parts of Australia.
The new rules will be introduced progressively over the next year and will place a cap on subclass 462 visas. Applicants for first, second and third-year visas will be required to enter a ballot.
Tourism Tropical North Queensland chief executive Mark Olsen said working holiday-makers played an important role in adventure tourism because of the languages and cultural knowledge they brought to the workforce.
“During our peak season, which coincides with school holidays, we are witnessing staff departures from the region,” Mr Olsen said.
He said multilingual workers were particularly important for activities including diving, bungee jumping, snorkelling and whitewater rafting, where clear communication could be essential for visitor safety.
“Effective communication in their native languages is crucial,” Mr Olsen said.
Mr Olsen also said tourism businesses needed workers to stay long enough to develop specialist skills, including roles such as dive masters.
He rejected suggestions that working holiday-makers were adding significantly to Far North Queensland’s housing pressures.
“Ninety per cent of their accommodation is in hostels or on farms, making their impact on housing minimal,” he said.
Cairns Chamber of Commerce chief executive Patricia O’Neil said the proposed visa changes could have “devastating” consequences for several industries.
She said the effects could extend beyond tourism and hospitality to aged care, childcare, labour hire and construction.
Agricultural producers are also concerned about the impact on the region’s seasonal workforce.
Joe Moro, president of FNQ Growers, said the Government was effectively dismantling the working holiday visa program for agriculture.
About one-third of the 15,000 agricultural workers in Far North Queensland are working holiday-makers, according to Mr Moro.
The region is widely regarded as one of Australia’s major fruit-growing areas and depends on international workers during peak harvesting periods.
Mr Moro said backpackers might be less willing to complete difficult farm work for six months if there was no certainty they could obtain a third-year visa.
He said some workers could instead choose to travel as tourists rather than undertake physically demanding agricultural work.
“The dedicated individuals who enjoy staying in Far North Queensland are now less likely to pursue a second or third year,” Mr Moro said.
With the lychee harvest approaching, Mr Moro warned that farms could face a shortage of workers at a critical time.
He said existing employees could be placed under greater pressure, creating potential safety risks in the workplace.
Farmers might initially absorb the additional costs of labour shortages, he said, but some crops could eventually be left unharvested.
That could reduce supply and contribute to higher prices for consumers.
Federal Pacific Island Affairs Minister Pat Conroy said Pacific workers could help fill some of the vacancies left by working holiday-makers who leave regional Australia.
“We have thousands of Pacific Islanders ready to take on these jobs,” Mr Conroy said.
He said employing Pacific workers was “in Australia’s national interest” and suggested the country should look to the Pacific for labour rather than relying on workers from other regions.
Leichhardt MP Matt Smith called for political cooperation to create a more effective visa system for regional businesses.
“Until that happens, we have limited options available,” Mr Smith said.
He said he would continue working with tourism and hospitality operators in the region to help them secure the workers needed to meet demand.
Queensland Sport Minister Tim Mander described the Federal Government’s proposed changes as “crazy”, but said the policy would not prevent Queensland from preparing for the 2032 Brisbane Olympic and Paralympic Games.
“We will be prepared, not only in Cairns but throughout the state,” Mr Mander said.
He predicted major development across Queensland during the five and a half years leading up to the Games.
However, tourism operators, farmers and business leaders say the immediate challenge is finding enough staff to meet current demand.
They argue that the working holiday visa changes could make Far North Queensland less attractive to backpackers, increase pressure on regional businesses and worsen labour shortages across tourism, hospitality and agriculture.
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