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Visa changes spark labour shortage concerns for outback Australia

Published 15/01/2024, 12:22 pm
© Reuters.  Visa changes spark labour shortage concerns for outback Australia
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The recent amendments to the Working Holiday Maker (WHM) scheme, affecting visa requirements for backpackers, especially those from the United Kingdom, are causing apprehension among outback business operators in Australia.

UK and Australia forging closer ties

These changes, arising from a new free trade agreement between Australia and the UK, could potentially lead to a staffing shortage in the peak tourist season in remote areas.

Historically, under the WHM scheme, backpackers were obliged to complete 88 days of regional work, often involving fruit picking or hospitality, to be eligible for a second-year visa.

This requirement, colloquially known as the '88 days', has been integral to the Australian backpacking experience, directing visitors towards regional employment.

But from July 1, British backpackers will no longer need to fulfil this condition to apply for up to three visas.

This alteration could increase the number of UK travellers in Australia but also risks diverting them from outback regions to more popular coastal destinations.

In the 2022-2023 period, more than 38,000 WHM visas were issued to UK citizens, with significant numbers also granted to individuals from France and Ireland.

Will backpackers overlook the outback?

The change in visa requirements is seen as a double-edged sword; while it may boost post-COVID travel from the UK, concerns are growing that it may lead backpackers to overlook the outback, which heavily relies on this seasonal workforce.

The outback's significant dependence on backpackers, especially during the high tourism season, has been a longstanding feature of its economy. The relaxed visa requirements might pose challenges for regions that have traditionally benefited from the influx of transient workers.

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Despite these concerns, there is hope that the lifestyle and experience of rural and regional areas will continue to appeal to potential labour in the form of backpackers or other workers.

Read more on Proactive Investors AU

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