Hospitality’s Roadmap for Recovery: Accommodation Australia calls for action ahead of Federal Election
AA’s 24 key recommendations span skills development, migration, tourism, short-term rental reforms, energy, tax and small business support
With a federal election on the horizon, Accommodation Australia has delivered a clear blueprint for the hospitality sector’s recovery, urging the next government to address critical staffing shortages, soaring costs, and tourism challenges.
In its comprehensive pre-budget submission, the industry body has outlined 24 key recommendations across six broad categories: skills, migration, tourism, short term rental reforms, energy, and tax and small business support measures.
Accommodation Australia CEO James Goodwin stressed the urgency of these reforms, highlighting the immense strain on the sector’s workforce.
“Our sector is predicted to grow by 59,400 jobs in the next five years, and we can barely keep up with staffing as it is,” Mr Goodwin said.
He emphasised the need for changes to skilled visa programs and rules around Working Holiday Makers, along with greater efforts to attract young Australians into the industry.
“We need to increase employer incentives for food trade apprentices and reintroduce hospitality traineeship incentives,” he said.
While major events and seasonal tourism provide temporary boosts, Mr Goodwin warned that the sector continues to struggle with low international tourism numbers and rising cost-of-living pressures.
“Operating and compliance costs have risen dramatically, and the data indicates these are increasingly being absorbed by hotels and motels,” he said.
Although the accommodation sector is on the road to recovery, uncertainty remains, and he urged the future government to prioritise the needs of accommodation providers and their workforce.
He highlighted the importance of increased funding for Tourism Australia and fostering greater competition among airlines, as international tourism numbers remain at just 88 percent of pre-pandemic levels.
Mr Goodwin also called for a national framework to regulate short term rental accommodation like Airbnb and Stayz.
“At a minimum, this should include registration of all short term rental properties, a cap of 90 days per year, with scope for local governments to impose lower caps, and DA approval for properties seeking to rent out above the cap,” he said.
Such measures, he noted, would help return housing to the long-term rental market, particularly in popular tourist areas where hotel staff often struggle to find accommodation.
Energy costs were another key concern, with Mr Goodwin urging the next government to implement tax incentives, subsidies, and support programs in collaboration with state and territory governments.
“Hotels also need continued access to gas. Gas is essential not only for hot water heating but also as the primary energy source for cooking. Moves by some jurisdictions to limit gas access have caused significant concern,” he said.
The accommodation sector currently employs more than 110,000 people nationwide as their main job, with tens of thousands more in supplementary roles. Over 57 percent of the workforce is female, and 40 percent of jobs are based outside capital cities.
Last financial year, the Accommodation and Food Services industry contributed over $60 billion to the Australian economy.
As the election draws closer, Accommodation Australia’s detailed submission highlights the importance of decisive action to secure the industry’s future growth and stability.
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