The Australian tourism sector has expressed strong opposition to proposed changes in working holiday-maker (WHM) visas included in the Albanese government’s immigration reform, warning that stricter visa limits could seriously damage the industry and broader economy. Industry leaders caution that any reduction in WHM visa duration or availability could result in significant job losses and a substantial decline in tourism revenue.

The Department of Home Affairs has already reported extended processing times for WHM visa applications and temporarily suspended submissions from around two dozen countries after annual quotas were reached. Further concerns have emerged over the possibility that visitor visas, currently valid for 12 months, could be shortened to six months under the new framework.

The Australian Tourism Industry Council (ATIC) highlighted that working holiday-makers are not permanent migrants and should therefore be exempt from net migration reduction targets. ATIC chief executive Erin McLeod said tourism and hospitality businesses depend heavily on these visa holders to maintain operations, especially during peak seasons. “Australians understand the value that backpackers and other international tourists bring. They do not want regional businesses and jobs sacrificed simply to reduce the official headline migration number,” McLeod said.

Data as of June 30 shows there were 225,648 individuals on subclass 417 and 462 visas, down from 258,974 in March. Sydney’s Captain Cook Cruises employs about 350 working holiday-makers over an 18-month period, according to general manager Nick Lester. He described these employees as essential for meeting seasonal demand and emphasized the mutual benefits, including the contribution those workers make to regional economies after their tourist season ends. “The tourism industry is dependent on these sorts of people. They’re usually happy people, we pay them well, and when the season’s over they spend that money in the regions,” Lester said. He expressed concern that scaling back the program would be shortsighted.

Graham Chapman, director of Blue Mountain Tours, noted that although his company does not rely directly on backpackers, partners such as wineries and farms would be adversely affected by changes to working holiday-maker visa policies. “They need a quick fix because immigration is in the news nowadays, it’s headline news and if this is their quick fix, it’s the dumbest quick fix on the planet,” Chapman said.

Similarly, Kenneth Wagner, managing director of KPAT Hotels, warned that attempts to reduce headline migration figures could produce unintended negative impacts on the tourism sector. The tourism industry collectively argues that these visa reforms risk undermining jobs and visitor spending, potentially creating a $3 billion shortfall in the economy. Without the labor supply provided by working holiday-makers, many businesses fear they will be forced to reduce operating hours, cut services, or even close.