Coalition's migration cuts threaten regional hospitality businesses

The Coalition has unveiled its migration policy, which the Australian Hotels Association (AHA) warns will disproportionately impact small businesses already facing staffing challenges. The policy includes what the Coalition describes as the largest cut to immigration in Australian history, with plans to reduce net overseas migration to 100,000 and cut the stock of temporary visa holders by around 650,000 over four years. The policy also aims to be budget-neutral.

Key elements of the policy include reversing Labor’s ballot system and caps for second- and third-year Working Holiday Maker visa extensions. The Coalition plans to differentiate visa fees based on regional and non-regional areas, with exemptions for regional areas. Opposition Leader Angus Taylor emphasized the need for skilled migration over mass migration, stating that migrants should fill critical skills gaps and contribute to the economy.

AHA National CEO, Paul Ferguson, expressed concern that the policy places an excessive burden on small businesses, particularly in regional areas. He noted that the hospitality sector has long struggled with worker shortages, now exacerbated by competition from other sectors like aged care and the NDIS. Ferguson warned that without Working Holiday Makers and backpackers, some regional pubs and hotels may have to close.

The Labor Party previously outlined its migration reforms in September, focusing on updates to the skilled migration program for several key sectors but excluding hospitality. While the AHA acknowledges the need for migration reform, it advocates for a balanced approach that does not harm regional hospitality businesses.