New Report Highlights Economic Importance of Backpackers in Regional Areas

As the Federal Government’s Regional Migration Review nears completion, peak bodies representing farmers, backpackers, and the tourism sector have released a new report underscoring the economic value of backpackers to regional communities.

Commissioned by the National Farmers’ Federation (NFF), the Backpacker & Youth Tourism Advisory Panel (BYTAP), and the Australian Tourism Export Council (ATEC), the report by Aither emphasizes Australia’s appeal as a destination for Working Holiday Makers (WHMs). Attracting over 200,000 WHMs annually, Australia boasts one of the most attractive WHM visa programs globally.

WHMs must complete 88 days of regional work to extend their visa for a second year, with an option for a third year upon further regional work. However, the Federal Government’s Migration Review Discussion Paper proposes removing this incentive. The report estimates that if 20,000 WHMs cease working in regional areas, it would cost regional economies $203 million per year and over 1,000 jobs. In the horticulture sector alone, this workforce’s absence could lead to losses of $6.3 billion and 127,000 jobs along the supply chain.

NFF President David Jochinke remarked: “The 88-day incentive encourages backpackers to leave the cities and engage in a genuine Aussie experience, filling crucial workforce gaps. Backpackers are essential to farmers, comprising 14% of all farm workers. In horticulture, they make up 44% of the workforce and are equally vital to grains (31%), red meat (26%), and cotton (25%) during peak seasons. Beyond labour, these backpackers enrich the cultural fabric and economies of our regions, becoming ambassadors for Australia.”

BYTAP Chair Wendi Aylward emphasized: “We appreciate the Government’s assurance that the one-year WHM visa will remain unchanged. WHMs contribute $3.2 billion annually to the Australian economy, staying longer, spending more, and crucially supporting labor in regional areas. It is essential that the 88-day requirement remains. Removing it, as suggested in the Migration Review Discussion Paper, would devastate regional Australia. WHMs not only fill labour shortages but also inject their earnings back into regional communities, supporting local businesses. Encouraging international travellers to live, work, and travel in regional Australia provides a unique cultural exchange and promotes soft diplomacy.”

ATEC Managing Director Peter Shelley added: “The WHM visa has provided an excellent work and holiday experience for thousands of young people worldwide over the past 50 years. It fosters valuable cultural exchange and creates long-term champions of Australia as a travel destination, with many becoming repeat visitors. As we move forward, we aim to ensure the WHM program continues to deliver great outcomes for our working holiday makers, employers, the industry, and the Australian community.”

Key Points from the Report:

• WHMs can work and travel anywhere in Australia for the first year, with extensions requiring specified regional work.
• In 2022-23, there were 224,431 WHMs in Australia.
• WHMs, aged 15-29, make up 27% of tourists but contribute 45% of visitor spending.
• WHMs directly contribute $726 million to regional economies, with 44% of tourist dollars spent in these areas.
• Each 10 WHM visas granted create one full-time Australian job.
• Tourism job vacancies surged by 176% in June 2023 compared to 2019, with around 17,000 openings, especially in regional areas.
• 57% of farms face recruitment challenges, with WHMs filling significant gaps.
• WHMs constitute 14% of all farm workers, with horticulture (44%), grains (31%), red meat (26%), and cotton (25%) heavily dependent on them.
• The absence of WHMs in horticulture would result in a $6.3 billion loss.

Read the full report here.

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