Visa fee hikes raise concerns for tourism competitiveness

The Australian Tourism Export Council (ATEC) has warned that rising visitor visa charges risk making Australia a less competitive destination, with the industry body arguing repeated fee increases could deter international travellers and working holiday makers.

From July 1, 2026, the cost of a Working Holiday Maker (WHM) visa increased from $670 to $840, while the Visitor visa (subclass 600) rose from $200 to $250. Since 2022, the WHM visa fee has climbed from $510 to $840, representing an increase of almost 65 percent.

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ATEC Managing Director Peter Shelley said the industry was disappointed by the latest increases, describing them as part of a broader pattern that risks undermining Australia’s appeal in the international market.

“The industry is incredibly disappointed by this decision,” he said.

“The concern isn’t simply this latest increase, it’s the cumulative impact, with the WHM visa increasing by around $200 in the past two years alone.”

Shelley questioned the long-term strategy behind the increases, arguing they fail to recognise the important contribution working holiday makers make to tourism businesses and regional communities.

“We understand the Government’s focus on managing net migration, but WHM visitors are fundamentally different,” he said.

“They are temporary visitors who come to Australia, travel throughout the country, spend money with local businesses, support regional communities, contribute to seasonal workforce needs and then return home.”

ATEC said higher visa costs also send an unhelpful message to international travellers at a time when Australia is competing with destinations including Canada, New Zealand, Japan and the United Kingdom for visitors.

According to the organisation, international travellers increasingly compare destinations based on value, affordability and ease of access, meaning higher visa fees can influence travel decisions before visitors even book their flights.

ATEC also warned the increases could have a disproportionate impact on younger travellers, who often combine extended holidays with seasonal employment and contribute significant spending across regional Australia.

Shelley said international visitors remain a vital part of Australia’s visitor economy, supporting accommodation providers, tourism operators and local businesses across the country.

“Whether they’re visiting for a holiday or spending a year working and travelling around Australia, these visitors bring new money into the country, support businesses across our tourism sector, contribute to regional economies and then return home,” he said.

He urged the Federal Government to ensure future policy settings support growth in international tourism rather than making Australia a more expensive destination.

“If Government is serious about growing the visitor economy and supporting regional Australia, policy settings should encourage international visitors, not gradually price Australia out of the global tourism game.”