Australia’s hospitality industry could face greater recruitment challenges as the Federal Government moves to tighten temporary migration pathways.
Under proposed changes to the Working Holiday Maker program, second-year visas would be capped at 45,000, down from approximately 57,000 last year. Third-year places would fall from around 31,000 to just 5,000, with applicants required to enter a ballot system.
Changes to international student visas are also underway. New rules introduced in October restrict most students from bringing family members and limit their ability to extend their stay through further study. Additional restrictions on temporary graduate visas are also planned.
The potential impact on hospitality is significant. Australian Bureau of Statistics data from 2021 shows food and beverage services employed 12% of working temporary residents, the largest share of any industry.
Industry groups, including the Australian Hotels Association, have raised concerns that reducing access to overseas workers could worsen existing staffing shortages, particularly in regional areas where businesses rely heavily on working holidaymakers.
While the reforms aim to reduce migration levels and ease pressure on housing, hospitality businesses could face increased competition for staff, higher recruitment costs and difficulties filling seasonal positions.
For an industry already managing workforce challenges, the proposed changes could create further uncertainty.
