Labor’s Backpacker Debacle Threatens to Decimate Territory Tourism

A kangaroo at left and an emu at right support a five sided plaque with images of a cross, a bird, a swan, a lion and more between them. They stand on supports with flowering branches all around them. Above the plaque is a star and below the word: Australia. The whole image is black on a white background.

THE HON DAVID LITTLEPROUD MP
Shadow Minister for Emergency Management
Shadow Minister for Tourism
Federal Member for Maranoa
 

7 October 2026

The Albanese Labor Government’s recent decision to slash Working Holiday Maker (WHM) visa holders by more than 40%, and the introduction of a ballot system, poses a devastating threat to the tourism and hospitality sectors in the Northern Territory, dozens of senior leaders have warned at an industry roundtable convened in Darwin today.

Last month, the Government announced it will implement a ballot system for backpackers who want to stay in Australia beyond one year, with eligible applicants for a second year WHM visa to be reduced from 57,000 to 45,000, while those wishing to apply for a third year will be cut from 31,000 to just 5,000.

Shadow Minister for Tourism David Littleproud, who attended and addressed the roundtable, slammed Labor’s cuts to backpackers, pointing to modelling commissioned by the Australian Tourism Industry Council (ATIC) that highlights the impact of the new measures on the sector.

“Backpackers are a crucially important part of the economic and social fabric of the Northern Territory, especially in tourism. They help these businesses get through seasonal peaks when local workers aren’t available. For Labor to target this cohort is an insult and a disgrace,” Mr Littleproud said.

“Introducing a ballot system makes no sense. The Government is basing our migration system on a raffle, rather than on merit, and this will harm the Northern Territory’s reputation as a tourism destination and deter backpackers by adding uncertainty to their visa conditions.”

“According to ATIC, the lottery system for second and third year WHM visas will ultimately result in a 70 per cent reduction in total intake, around 65,300 fewer backpackers working, contributing and spending in regional Australia. That’s a $1.65 billion hit to visitor spending, and puts 11,000 regional jobs at risk,” Mr Littleproud said.

“Even accounting for the Government’s current projections of a 43 per cent cut to WHMs, ATIC says the Northern Territory would still lose 1,200 backpackers, 300,000 nights, and $18.5 million from its economy.”

Mr Littleproud today announced that a Coalition Government would reverse Labor’s ballot system and caps for second and third-year WHM visa extensions.

“A Coalition Government will scrap Labor’s ballot system and caps altogether. Instead, we’ll differentiate between Working Holiday Makers in regional and non-regional areas, by raising visa fees with an exemption for those heading to regional Australia,” Mr Littleproud said.

“This is about backing the regions that actually rely on this essential workforce, not punishing them with a lottery that treats migration like a raffle.”

Under the current Government, Mr Littleproud also said the tourism sector should be given the same WHM assurances recently granted to the National Farmers’ Federation, given operators face similar seasonal workforce pressures to agriculture.

“What the Northern Territory tourism industry needs right now is certainty, clarity and support. Instead, all they’ve received is uncertainty, silence, and neglect under Labor.”

“Many Northern Territory operators have already endured a tough year, marred by federal funding cuts, public fuel anxiety, visa delays, high operating costs, and endless red tape. These WHM cuts are yet another blow for hardworking operators who don’t deserve this treatment from their own Government. 

Chief Executive Officer of Tourism Top End (TTE), SamanthaBennett, said many Northern Territory tourism operators were doing it tough.

“There were around 7,200 Working Holiday Maker visa holders in the Northern Territory in the year ending June 2026. For the Territory, these young travellers are incredibly important because they contribute twice — they provide an essential workforce for tourism businesses, particularly in our regional and remote areas, and they are also visitors who travel, stay and spend money in our communities,” Ms Bennett said.

“For the Territory, this is ultimately about getting the policy settings right. Working Holiday Makers are both an essential workforce and an important visitor market, particularly for regional and remote Australia.”

“Our concern is that the proposed changes weaken the incentive for Working Holiday Makers to complete regional work and stay longer in our regions. We are asking the Australian Government to reconsider these settings and ensure the program continues to encourage Working Holiday Makers into regional Australia, where their contribution to both our workforce and visitor economy is significant.” 

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