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Tourism Industry Warns Visa Fee Hikes Could Make Australia Less Competitive

Jul 7, 2026
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Tourism Industry Warns Visa Fee Hikes Could Make Australia Less Competitive
The Australian Tourism Export Council (ATEC) has sounded the alarm over the latest rise in visitor-visa pricing, arguing that repeated increases risk deterring the very backpackers and leisure travellers regional operators rely on. From 1 July, the Working Holiday Maker (WHM) visa climbed from AUD 670 to AUD 840 – a 25 % surge and a 65 % jump since 2022 – while the visitor (subclass 600) fee rose from AUD 200 to AUD 250. ATEC managing director Peter Shelley says the cumulative effect matters more than the single uptick: “Policy settings should encourage travellers, not price Australia out of the game.” He notes that younger visitors on WHM visas spend heavily in regional areas, filling critical seasonal jobs in hospitality and agriculture. Every extra dollar at the application stage, he argues, is a dollar less spent on local tours, hostels and cafes.

Industry groups fear the timing is awkward. International tourist arrivals only returned to 93 % of 2019 levels in the March quarter, and rival destinations such as Canada and Japan are actively subsidising working-holiday programmes to boost spending.

Tourism Industry Warns Visa Fee Hikes Could Make Australia Less Competitive


If navigating the changing fee landscape feels daunting, VisaHQ offers a one-stop online portal – – that breaks down current costs, lists required documents and guides applicants through each step for Australian visas and many other destinations. The streamlined service helps travellers understand their options quickly, potentially easing the financial sting regional operators worry about.

ATEC estimates the new fee structure could shave AUD 70 million from inbound leisure revenue over the next 12 months if even 5 % of would-be WHM applicants choose cheaper alternatives. For accommodation providers, higher visa costs compound other inflationary pressures, including soaring energy bills and wage growth. Regional hotels that depend on WHM staff each harvest have warned of labour shortages if application numbers dip. Some are already offering partial visa-fee rebates as a hiring incentive – an expense that cuts directly into profit margins. ATEC is urging Canberra to introduce a tiered structure that distinguishes between migration-reducing measures and tourism-stimulation objectives. One proposal is to credit part of the WHM fee back to travellers who complete a minimum period of regional work, thereby retaining the revenue while still incentivising length-of-stay. Whether the Government will revisit the pricing table remains to be seen, but the debate highlights the delicate trade-off between controlling migration numbers and sustaining Australia’s visitor economy.

Australian Visas & Immigration Team @ VisaHQ

VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.

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