Major employers in Far North Queensland are reporting a decrease in staff due to recent modifications to working holiday visa regulations, which are set to be implemented over the next year. These changes will limit the number of working holiday-makers from specific countries, prompting concerns about future staffing levels.
The federal government has suggested that workers from the Pacific Islands will help fill the labor shortages created by these adjustments. However, with the current tourist season in full swing, businesses in the region are anxious about their ability to meet demand moving forward.
Geoff York, the CEO of Crystalbrook Collection, noted that some employees on second-year working holiday visas are already opting to leave. “We have already seen departures among second-year working holiday-makers,” he stated. According to Mr. York, nearly 45 percent of the 500 staff across their Cairns-based hotels, restaurants, bars, and day spa hold working holiday visas.
Many of these workers are reluctant to commit to another six months of regional employment required to qualify for the third-year visa lottery, which offers only a one in six chance of success. “That’s not an enticing prospect,” he remarked. He warned that the industry might face staffing shortages akin to those experienced during the COVID-19 pandemic, making it difficult to operate at full capacity despite strong demand. “I manage two hotels with 300 rooms each, but I might only be able to fill 250 of those rooms,” he added.
To qualify for a second-year working holiday visa, applicants must complete 88 days of work in regional or remote Australia. The new regulations, which are being phased in over the next year, will impose caps on the 462 visa category and require applicants to enter a lottery for first, second, and third-year visas.
Tourism Tropical North Queensland is advocating for the government to reverse these changes, especially during the peak school holiday season when many employees are leaving the area. Mark Olsen, the organization’s CEO, emphasized the importance of working holiday-makers for maintaining safety in tourism activities, as they bring valuable language skills essential for effective communication with international visitors.
Mr. Olsen also highlighted the need for workers to remain long enough to develop essential skills for specific roles, such as dive masters. He dismissed concerns regarding housing shortages in the Far North, pointing out that the majority of these workers typically reside in hostels or on farms, which do not considerably impact local housing availability.
Patricia O’Neil, CEO of the Cairns Chamber of Commerce, echoed these concerns, stating that the visa cuts would have detrimental effects on various sectors, including aged care, childcare, labor, and construction.
Joe Moro, president of FNQ Growers, expressed frustration, stating that the government’s actions have effectively dismantled the working holiday visa process for the agricultural sector, where approximately one-third of the 15,000 workers on local farms are from this program. As one of Australia’s leading agricultural regions, farmers depend on these international workers to fill labor gaps during peak harvest times.
With the lychee harvest approaching, Mr. Moro expressed concerns about insufficient staffing, which could pose safety risks for overworked employees. Although farmers may absorb some short-term costs, he cautioned that some crops might go unharvested, ultimately leading to increased prices for consumers.
In response to staffing gaps, Federal Pacific Island Affairs Minister Pat Conroy stated that there are thousands of Pacific Islanders ready to take on these roles, emphasizing that this solution aligns with Australia’s national interests and is preferable to sourcing workers from other regions.
Leichhardt MP Matt Smith called for collaboration among political parties to establish a more effective visa system. He indicated that until a new system is devised, options for addressing the labor shortage remain limited. Mr. Smith pledged to work alongside the local tourism and hospitality sectors to secure the workforce they need in the interim.
On a different note, Queensland Sport Minister Tim Mander criticized the federal government’s proposed changes, labeling them as “crazy,” although he assured that they would not impact preparations for the 2032 Brisbane Olympics. “We will be prepared, not just in Cairns, but throughout the entire state,” he affirmed, promising significant progress in the coming years leading up to the Games.
