Hospitality operators on NSW coast push for migration pact as backpacker visa caps loom

A federal decision to cap second-year backpacker visas at 45,000 places is sparking concerns among hospitality businesses in New South Wales’ coastal towns, where seasonal workers are essential. Harry Barry, director of North Coast Hotel Group, which has employed 80 backpackers in the past two years, says many are now considering leaving because the guarantee of a further 12-month extension has vanished. Seek lists more than 130 open hospitality jobs in the Coffs Harbour area, highlighting the depth of the shortage.

In response, Barry and other regional operators are backing a push for a Designated Area Migration Agreement (DAMA) that would permit semi-skilled migrants to fill these gaps. DAMAs, already in place in 13 Australian regions, have helped places like Cairns and Townsville sustain their economies, and the NSW government is reportedly studying a state-led version. Stakeholders such as Madeleine Lawler and Patricia O'Neill stress that such agreements are intended only after local recruitment efforts have failed.