1. Global Mobility News
  2. /
  3. Australia
  4. /
  5. Hospitality sector warns of crippling skills gaps as political parties race to slash migration

Hospitality sector warns of crippling skills gaps as political parties race to slash migration

Oct 14, 2026
·
Hospitality sector warns of crippling skills gaps as political parties race to slash migration
Australia’s $71 billion hospitality and tourism industry has launched an unusual, and highly visual, social-media campaign depicting an Australia where cafés sit idle, hotel guests change their own sheets and aged-care residents bid farewell to their carers. The Australian Hotels Association (AHA) produced the clip after all major political parties committed—without economic modelling—to steep cuts in net-overseas-migration (NOM). AHA chief executive Stephen Ferguson told ABC News that 7,000 chef and cook vacancies already exist and warned that “there are simply not enough Australians to fill them.” Business groups have been growing louder for months, arguing that post-pandemic pent-up demand, a construction boom and an ageing population have collided with near-record domestic unemployment to create a structural labour shortage. Independent research commissioned by the Federation of Ethnic Communities’ Councils of Australia (FECCA) and released yesterday shows 70 percent of small-business owners believe migrant workers are essential to operations; 87 percent see multiculturalism as an “economic strength.” Immigration Minister Tony Burke insists the government’s plan to taper NOM to 225,000 by 2028 is “sensible,” but industry worries that headline caps ignore granular skills gaps. One Nation proposes temporarily driving NOM negative; the Coalition wants a two-year 100,000 cap. Analysts at Deloitte Access Economics calculate that every 10 percent cut in skilled migration removes roughly $6 billion from GDP over five years, predominately through lost labour income and consumption. For global-mobility managers the campaign is a reminder to watch the political cycle closely. Employers dependent on employer-sponsored visas (TSS 482 and permanent subclasses 186/189) face a tightening nomination ceiling and potential salary-threshold hikes in the next Budget. Companies in hospitality, aged-care and construction should revisit workforce planning models, accelerate Labour-Agreement negotiations and broaden regional recruitment if the political arithmetic continues to favour lower intakes. Practical take-away: anticipate longer lead-times and higher compliance risk for employer-sponsored visas in 2027 allocations. Engage industry associations early to join sector-wide advocacy, and quantify vacancy-backfill costs so finance teams grasp the commercial stakes of immigration cuts.
Source: ABC News

How VisaHQ can help

VisaHQ simplifies the visa application process for individuals and businesses. Check current travel requirements, prepare the required documents and manage your application online through the VisaHQ Australia portal.

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.

Editorial Policy
×