New research suggests the Australian Government should relax Working Holiday Visa (WHV) guidelines, allowing travellers to extend their stay by working in regional tourism and hospitality industries.
The research, commissioned by the Australian Tourism Export Council (ATEC), shows existing guidelines deprive regional tourism and hospitality businesses of much-needed labour, while hampering additional potential earnings of up to $28 million annually in GDP.
Currently, backpackers must complete 88 days of regional work in agriculture, mining, or construction to be eligible for a 12 month visa extension. ATEC advocates changing this requirement so backpackers can extend their stay by completing regional work in tourism or hospitality instead.
“ATEC believes there is a strong case for adjusting the WHV that will bring significant benefits to Australia’s global tourism competitiveness, regional communities, and the overall economy,” ATEC General Manager Felicia Mariani said.
“The current situation only sees around 22 000 people heading to regional areas to find work. There are 162 000 WHVs issued each year; this means there are another 140 000 potential WHV visitors who could contribute to Australia’s wider economy.”
According to the International Visitor Survey for September 2011, travellers on a WHV stayed an average of eight months and spent over $13 200 per trip. Visitors contributed almost $600 million to regional economies last year alone.
“Regional Australia is more economically reliant on tourism generated revenue than metropolitan Australia,” Ms Mariani said. “The growth of the backpacker visitor sector (brought about by the proposed changes to WHV requirements) would be of significant advantage to local communities.”
WHV recipient and Sydney resident Fionnuala Mc Geough said she chose to visit Australia because of its booming economy and the increased chances of finding work.
“I have considered regional work, not only to receive a WHV extension but also to have the opportunity to see some of Australia’s agricultural landscape,” she said. “My university qualification is in Art History, so a position in the tourism industry would be ideal.”
An economic analysis of the proposed changes has been conducted by the Centre for International Economies (CIE), and the ATEC is in talks with the Government to implement the proposed changes. “We are hopeful the Government will see the benefits of the proposed changes and will move quickly to implement them,” ATEC media spokesperson Julia Smith said.
“This will be a very positive step for the Australian economy.”
By Rebecca Cleaver
