Kimberley businesses fear visa changes will slash backpacker numbers

Businesses in Western Australia's north are concerned that recent changes to the Working Holiday Maker visa program will deter backpackers from choosing to work in remote regions where they are most needed.

The federal government has announced changes to the program, which could influence the decisions of backpackers coming to Australia in the future. Zac Cederholm, an American barista who manages a cafe in Kununurra, about 3,000 kilometres north of Perth, said he would not have ventured to the remote area if the visa extension options weren't available.

"I did come here to work towards my third year visa, and if that wasn't an option, I would never have come here," Zac Cederholm said.

Under the current system, backpackers wanting to extend their visas for a second or third year must work in regional or remote Australia — 88 days for a second year, and six months for a third. However, under the government's changes, which are being progressively rolled out over the next year, backpackers will also have to enter a ballot, with third-year extensions capped at 5,000, down from 31,000 this year.

Cederholm said these changes would make it less attractive for backpackers to come to remote Australia, where they currently do essential jobs like picking fruit, stacking shelves and serving tables. Many businesses in the Kimberley are staffed by backpackers.

"If you can have staff that stay around for potentially six months, that's consistency, that's reliability," he said.

Cederholm also noted that the visa changes would do little to ease some of the region's ongoing issues like housing, with most temporary migrants in the Kimberley living in hostels, dongas and share houses.

"I don't know any backpackers that have taken up single houses," he said.

Australia's North West Tourism chief executive Bill Tatchell said he was calling for common sense in relation to "essential" backpackers. He described the policy as "incredibly frustrating" and said it would reduce the incentive for backpackers to undertake regional jobs.

"Fundamentally, there's an economic loss and it's just beggars belief a decision can be made that can have such an impact in regions," Mr Tatchell said.

East Kimberley Chamber of Commerce chief executive Keda Bond said businesses were "definitely nervous" about the future. She said the reduction in third-year visas would be "devastating" for the region, which relied on seasonal workers.

"If five businesses close in one of our towns, like Kununurra, for example, that is felt by the whole town, the whole region, and there is an actual reduction in services," Ms Bond said.

Bond described the reform as a "kick in the gut" for remote businesses, already struggling after changes to visa processing priorities to curb net overseas migration.

Haydn Sale, general manager of Yougawalla Pastoral Company, which is reopening a major abattoir near Broome, said the abattoir Pindan Beef Company struggled with skilled workers, with only one application from an Australian resident and a number of skilled workers whose visas were "held up in the system".

"I was pleasantly surprised that you can get into Parliament House and you can rattle around and make your case," Mr Sale said.