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Coastal hospitality sector pushes for Designated Area Migration Agreement as backpacker ballot looms

Oct 9, 2026
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Coastal hospitality sector pushes for Designated Area Migration Agreement as backpacker ballot looms
Holiday towns along New South Wales’ Mid North Coast are scrambling to replace the backpackers who keep pubs, cafés and motels running. An ABC News report on 9 October quotes publican Harry Barry, whose venues employ 80 working-holiday visa holders, warning that the federal government’s new ‘backpacker ballot’ will cap second-year Working-Holiday extensions at 45,000 places – well below last year’s 57,000 approvals. Third-year places will shrink to just 5,000. Fearing an exodus of seasonal staff, business leaders are lobbying for a Designated Area Migration Agreement (DAMA) that would let regional employers sponsor semi-skilled overseas workers in hospitality, agriculture and tourism. Thirteen DAMAs already operate nationwide, but only one covers NSW. Regional Development Australia Mid North Coast says consultations are under way to build a business case for Home Affairs. DAMAs offer concessions on English, skills and salary thresholds, making them a flexible alternative when Working-Holiday supply tightens. However, they require proof that local recruitment has failed and involve state endorsement plus federal labour-market testing. Companies hoping to use the instrument should start gathering vacancy data, advertising evidence and workforce-planning projections now. The episode illustrates how headline migration cuts can ripple through regional economies. Mobility advisers should brief clients with coastal or agritourism operations on the ballot mechanics, compare DAMA versus standard Temporary Skills Shortage (subclass 482) pathways, and watch for potential industry-specific labour-agreement models the government may fast-track if labour shortages bite.
Source: ABC News

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