Visa changes will worsen jobs and skills shortages, hospitality bodies warn
The government said its focus is on attracting the skills Australia needs, but the industry has warned it is not the right approach
The nation’s hospitality bodies are voicing concerns over changes to Working Holiday Maker visas, and continued twelve-month delays to process skilled visas.
Minister for Home Affairs, Tony Burke MP, announced the changes in an address to The National Press Club last week. Reforms include changes to the Working Holiday Maker Program to introduce a ballot system for years two and three of visas, with a regional work requirement.
The government said its focus is on attracting the skills Australia needs, supporting economic growth and productivity, and ensuring migration settings work for Australian workers and communities.
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Minister Burke said: “The government supports immigration but is opposed to anyone rorting the immigration system.
“Almost everyone who comes to Australia is a good guest in our country. These reforms are to ensure that our migration system can be better targeted to the current needs of Australia.”
Australian Hotels Association (AHA) CEO Stephen Ferguson opposed the reforms. “Targeting working holiday makers makes no logical sense – they are a motivated and mobile workforce who help fill seasonal work, especially in the regions.”
“The lottery for second-and-third year working holiday makers will create skewed outcomes,” Mr Ferguson said.
“In the third year, only one in six can win a ticket. This will do nothing but stop people undertaking six months remote work in their second year. It will distort the supply of essential workers in remote and regional Australia.”
Accommodation Australia CEO James Goodwin said in regards to skilled visas, the industry was concerned the Government’s changes further de-prioritises a sector already suffering from a chronic skills shortage.
“It is ridiculous that a skilled occupation like a chef can take up to 12 months to process – there are 7000 chef and cook vacancies in Australia right now,” AA CEO James Goodwin said.
“The hotel industry needs migration due to chronic workforce and skills shortages – we simply can’t fill all the vacancies locally now – and it’s only going to get worse.
“What’s lost in all this talk about migration numbers is that fundamentally Australia as a nation has a huge workforce challenge here.
“It will now be harder for hotels to access the workers we need and the changes will increase competition in an already tight labour market,” Mr Goodwin said.
Related AccomNews story: Workforce and visa challenges lead agenda in the nation’s capital
The Australian Tourism Industry Council (ATIC) has also raised concerns, after the Federal Government’s announcement that it will slash backpackers working in regional areas by 43 percent. ATIC estimates the changes will strip $560 million in annual visitor spending from the Australian economy and cost 3,800 Australian tourism jobs, with the largest reduction affecting backpackers who would otherwise remain in Australia under a third visa.
ATIC CEO Erin McLeod said the changes would directly hit the regional communities that rely on backpackers as both visitors and workers.
“The biggest impact will be on backpackers seeking a third visa, who currently undertake six months of regional work to become eligible. Under these changes, a backpacker can do the regional work but no longer have the same certainty of securing the next visa. That takes away one of the biggest incentives for them to commit months to working and travelling through regional Australia,” Ms McLeod said.
“Why would a backpacker commit six months to specified regional work if there is no guarantee they will receive the visa they are working towards?
“That is why we are concerned the real regional impact could be even greater than these figures.
“Regional businesses will lose twice — they lose valuable visitors spending in their communities and they lose workers they rely on to keep their doors open.”
“The Government has cut the visas, but it is regional tourism businesses and communities that will pay the price.”
division of the Australian Hotels Association, and the Australian Chamber of Commerce and Industry (ACCI)
have come together to make their position clear: they say they are aghast by the lack of any industry consultation of a policy that will have significant consequences for their sector. They warn that if these measures are followed through, the consequences for Australian businesses, workers and the broader economy will be immediate and dire.
