Regional businesses alarmed as Australia limits working holiday visas

Fionnghuala Ni Fheinne says she is considering all her options after the visa changes. ( ABC Far North: Rosanne Maloney )

Regional Queensland businesses say changes to Australia's migration system, including introducing a ballot system for working holiday makers, will have devastating impacts.

Home Affairs Minister Tony Burke announced the changes yesterday.

Business owners are calling on the federal government to reconsider the changes, saying the focus on backpackers will not solve the housing crisis.

Around a normally lively Far North Queensland backpackers' hostel, an unusually sombre mood lingers in the air.

Irish backpacker Fionnghuala Ni Fheinne feels uncertain about her future in Australia after a shake-up of Australia's working holiday visa program.

Home Affairs Minister Tony Burke announced the changes to Australia's migration system last night, including introducing a ballot system for working holiday makers.

Among the changes, third-year working holiday visas would be limited to 5,000 backpackers each year.

The tourism and hospitality sectors in regional Queensland said the change would have devastating impacts.

Ms Ni Fheinne's shock was shared by others on working holiday visas in Cairns.

"It's a little bit scary," German backpacker Philip De Broux said.

Philip De Broux is worried the changes will complicate his hopes of working in Australia for a second year. ( ABC Far North: Rosanne Maloney )

Mr De Broux said the change may impact his hopes of a second year working in Australia.

"Now I know there are less places, which makes the competition even harder."

Peter McLeay is the owner of a Cairns backpackers hostel and a local restaurant. He said the announcement had thrown the business into chaos.

Peter McLeay says he feels betrayed by the government. ( ABC Far North: Rosanne Maloney )

"To find out last night that a backpacker will have about a one-in-six chance of getting that third year after they do everything right is just devastating for us," he said.

He said he felt betrayed by the government's decision, with backpackers making up about 90 per cent of his staff.

Peter McLeay says backpackers make up about 90 per cent of his staff. ( ABC Far North: Rosanne Maloney )

"These are roles we just can't fill with Australians … we don't get Australians applying to be a hostel manager and [similar roles], so it's going to gut the entire hierarchy of the company," Mr McLeay said.

Other tourism businesses in Townsville shared the concerns.

Local resort chief executive Tim Richardson said it was hard to employ locals and working holiday makers filled a crucial part of the community's employment structure.

"Hospitality is tough by itself; we are very highly regulated and the hours aren't sexy for young employees anymore," he said.

Tourism Tropical North Queensland chief executive Mark Olsen said he was concerned the visa changes could make Australia less appealing for working holiday makers in general.

Mark Olsen says limiting the number of international workers will devastate the tourism economy. ( ABC News: Baz Ruddick )

"We are seeing increasing cost pressures for Australia as a destination … compared to other destinations," he said.

"So to maintain our competitiveness … this is vital for us," he said.

Mr Olsen said the international workforce was a key part of the region's skill base and limiting their numbers would have devastating impacts for the tourism economy.

"We understand the capital cities are under pressure, but we would call on the federal government to reconsider.

"The downward pressure on second- and third-year numbers will impact the regions more than they impact the capital cities.

"These working holiday makers … play a vital role in our community. They put food on our tables; they're not taking the roofs off our heads."

Agriculture operations were also worried about what the visa changes meant for their industry.

David Groves, field manager at a tropical fruit farm north of Rockhampton, said focusing on backpackers would not solve the housing crisis.

He said there would be a workforce shortfall.

David Groves says the changes will be especially hard on small and medium farms. ( ABC Capricornia: Katrina Beavan )

Backpacker Fionnghuala Ni Fheinne is considering other avenues that may allow her to continue working in Australia.

"I'm frantically searching to see if I should [apply for a skilled visa]," she said.

"I have a degree in education if I should go down the skilled visa route instead, but it's kind of leaving it very last minute for me.

"We do a lot for this country; we work very hard. There's a lot of doctors here. There's a lot of nurses that aren't Australian and I just found it very shocking, to be honest, and I'm hoping that they change their mind."