Australia’s tourism sector has reacted with fury to the Government’s decision to cap second-year Working Holiday visas at 45,000 and third-year visas at just 5,000 via a new ballot. In a statement on 18 September, the Tourism & Transport Forum (TTF) said the reforms remove at least 38,000 potential visitors and seasonal workers compared with last year—and were imposed without industry consultation. Chief Executive Margy Osmond described the policy as “an extraordinary slap in the face” for operators still recovering from the pandemic and coping with high fuel and labour costs. TTF research indicates Working Holiday Makers (WHMs) spent AU$4.4 billion in Australia last year—25 per cent of it in regional areas where labour shortages are acute. Under the new rules, completing 88 or 180 days of specified regional work is still mandatory before entering the ballot, but no longer guarantees an extension. British citizens remain exempt under the UK–Australia Free Trade Agreement, creating what businesses fear will be a two-tier system favouring one source market over others such as Germany, France and South Korea. Industry leaders are demanding faster visa processing (currently trending at three months) and the inclusion of tourism and hospitality on the Government’s priority processing list, which presently covers construction, healthcare and agriculture. Some firms have already downgraded summer staffing forecasts and are exploring Pacific Labour Mobility placements, though onboarding timelines and skill mismatches remain obstacles. If no concessions are forthcoming, tourism operators predict higher room rates, shorter trading hours and lost export revenue during Australia’s busiest travel quarter. Corporate travel managers should expect tighter capacity on regional tours and hospitality services from December onward and build contingencies into event planning.
Source: TravelTalk
