As the Federal Government gets to the pointy end of its Regional Migration Review, peak bodies for farmers, backpackers and tourism have released a new report highlighting the economic value of backpackers in the regions.
The report by Aither was commissioned by the National Farmers' Federation (NFF), Backpacker & Youth Tourism Advisory Panel (BYTAP) and Australian Tourism Export Council (ATEC).
It emphasises how Australia has the most attractive Working Holiday Maker (WHM) visa program in the world, attracting more than 200,000 WHMs to work, travel and live in Australia each year.
For WHMs to extend their visa a second year, they must first complete 88 days work in the regions - and they have option to extend their stay another year if they continue further regional work. However, the Federal Government's Migration Review Discussion Paper flags the option to remove this incentive.
The report estimates if 20,000 WHMs no longer ventured out of the cities, it would cost regional economies $203 million per year and more than 1000 jobs. However, at an industry level, the horticulture sector alone estimates the absence of this workforce would cost $6.3 billion and 127,000 jobs would be lost along the supply chain.
These peak bodies have raised significant concerns that removing the incentive would rip billions of dollars from regional economies and stymie productivity.
Comments attributable to NFF President David Jochinke
"The 88-day incentive means these visitors, mostly backpackers, leave the fast-paced city streets and immerse themselves into a true-blue Aussie experience in the regions, importantly filling vital workforce shortages.
"Backpackers are a critical workforce for farmers, comprising 14% of all farm worker jobs.
"While WHMs make up 44% of horticulture's workforce, they're also important to grains (31%), red meat (26%), and cotton (25%) during peak times.
"It's become a rite-of-passage for young visitors to get out into the regions and experience the full extent of what Australia offers. Nothing hits quite like the sunsets from the back paddock where backpackers can contribute to helping Australia produce food and fibre for the rest of the world.
"These backpackers aren't just an invaluable workforce to farmers, they contribute to the cultural fabric and economies of our regions and go home to become ambassadors for Australia."
Comments attributable to BYTAP Chair Wendi Aylward
"We welcome the Government's assurance the one-year Working Holiday Maker (WHM) visa will remain unchanged.
"WHMs contribute $3.2 billion annually to the Australian economy. They stay longer, spend more, and are a critical source of labour in regional Australia.
"But it is imperative the 88-day requirement remains in place. The Migration Review Discussion Paper has flagged this may be removed and this would be devastating for regional Australia.
"The pandemic showed us how important it is that we continue to incentivise travellers to visit and work in regional Australia. Besides filling labour shortages, WHMs spend what they earn in regional communities, and support local businesses.
"Not only are overseas backpackers vital to Australia, this is reciprocated with thousands of Australians doing the same thing.
"Every year young Australians head overseas on their own working holiday. Encouraging international travellers to live, work and travel in regional Australia gives them a unique opportunity to experience Australia in a way few can do. This is soft diplomacy working at its best."
Comments attributable to ATEC Managing Director Peter Shelley
"The WHM visa has been successful in delivering a great work and holiday experience for thousands of young people from across the world over the past 50 years.
"The visa provides a valuable cultural exchange and creates long term 'champions' of Australia as a travel destination with many travellers becoming repeat visitors.
"As we head into the next 50 years, we want to ensure the WHM program delivers great outcomes for our working holiday makers, our employers across the country, our industry, and the Australian community."
