The government’s controversial decision to slash backpacker visas will put Australian tourism jobs at risk and strip $560m from the economy.
That was the warning from the Australian Tourism Industry Council following the government’s announcement that it will slash backpackers working in regional areas by 43 per cent.
ATIC has warned regional tourism businesses will bear the brunt of any changes to Australia’s Working Holiday Maker program.
ATIC estimates the changes will strip $560 million in annual visitor spending from the Australian economy and cost 3,800 Australian tourism jobs, with the largest reduction affecting backpackers who would otherwise remain in Australia under a third visa.
Under existing arrangements, backpackers can undertake regional work to become eligible for a second or third Working Holiday Maker visa.
These requirements provide a strong incentive for backpackers to travel and experience regional and northern Australia.
Under the new cap, completing that work will no longer provide the same guaranteed pathway to a subsequent visa, fundamentally undermining the incentive for backpackers to spend months working in regional Australia.
Erin McLeod, ATIC CEO, said the changes would directly hit the regional communities that rely on backpackers as both visitors and workers.
“This is a mass cut to regional backpackers,” Ms McLeod said.
“These changes will slash longer-stay regional backpackers by 43 per cent and take over half a billion dollars in visitor spending out of the economy and cost 3,800 Australian tourism jobs.
“The biggest impact will be on backpackers seeking a third visa, who currently undertake six months of regional work to become eligible.
“Under these changes, a backpacker can do the regional work but no longer have the same certainty of securing the next visa. That takes away one of the biggest incentives for them to commit months to working and travelling through regional Australia.
“Why would a backpacker commit six months to specified regional work if there is no guarantee they will receive the visa they are working towards?
“That is why we are concerned the real regional impact could be even greater than these figures.
“Regional businesses will lose twice – they lose valuable visitors spending in their communities and they lose workers they rely on to keep their doors open.”
The impact will be particularly significant across northern Australia, where specified work arrangements have encouraged backpackers into northern Queensland, the Northern Territory and northern Western Australia.
“For businesses in northern and regional Australia, these aren’t just numbers on a migration spreadsheet,” Ms McLeod said.
“They mean fewer customers, fewer workers and less money through the doors of Australian tourism businesses.
“The Government has cut the visas, but it is regional tourism businesses and communities that will pay the price.”
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