Regional Queensland warns Canberra: working-holiday visa cuts will cripple tourism and hospitality

In Townsville on 9 October, business owners and local MPs staged a coordinated media push to highlight the economic fallout of proposed federal migration cuts. A Guardian investigation found that working-holiday makers account for more than 60 per cent of staff in some north-Queensland hospitality businesses, with employers already advertising roles at above-award rates but receiving few domestic applicants. The campaign comes as both major parties contemplate caps on second- and third-year working-holiday visas and stricter eligibility for student visas in response to housing-affordability concerns. Stakeholders argue that regional economies, which cannot easily lure skilled Australians, would bear the brunt of sudden intake reductions. “We need every hand we can get,” said Townsville café owner Sydney Schetter, herself a Canadian working-holiday maker facing departure next month. Tourism bodies warn that backpackers injected A$3.2 billion into the national economy pre-pandemic and remain the backbone of seasonal labour in agriculture and hospitality. Modelling by Queensland’s Chamber of Commerce suggests a 25 per cent drop in WHM arrivals could cost the state 9,000 jobs and A$480 million in visitor spending over two years. Policy uncertainty is already influencing recruitment: some employers are switching to labour-hire firms that source Pacific workers under the PALM scheme, while others are considering automation or reduced opening hours. Mobility advisers note that regional sponsorship visas (subclass 494) are ill-suited to casual baristas and hostel cleaners, leaving a potential labour-market gap if WHM numbers fall. Canberra has signalled it will consult with the tourism and agriculture sectors before finalising any ballot or cap mechanisms, but north-Queensland operators say decisions made in the coming months will determine whether they can staff the 2026-27 summer peak season.