Many tourism businesses in Australia’s Northern Territory (NT) risk closure during the upcoming wet season following a difficult dry season and new federal backpacker visa caps, industry representatives warned on 7 October 2026.
The NT’s Top End region faced multiple operational challenges in 2026, including elevated fuel prices, fewer domestic flights, and recovery costs from severe weather events that delayed the start of the tourist season. Cleanup efforts from these natural disasters have cost some operators hundreds of thousands of dollars, with some losing their businesses entirely.
Industry Calls for Dedicated Resilience Fund
Tourism Top End, representing operators in the northern NT, is urging the federal
government to establish a resilience fund to support businesses during the quieter wet months. Tourism Top End chair Chris Chaffe proposed a comprehensive package that includes tourism vouchers to boost bookings, targeted wage subsidies, coordinated payroll tax relief, flexible tax payment options, and interest-free loans for viable businesses experiencing cash flow gaps.
Chaffe also called for small grants where additional debt is impractical, stressing urgent intervention: “We are seriously concerned that rising costs and a compressed tourism season will leave small and medium operators without the cash reserves to survive the coming Wet,” he said. “We need action before businesses
close their doors.” The fund would help address challenges related to prolonged flight shortages and rising operational expenses.
Federal Backpacker Visa Caps and Industry Response
The federal government plans to cap working holiday visas, mandating backpackers to enter a ballot for stays beyond 12 months. The number of second-year visas will be limited to 45,000 and third-year visas to 5,000 annually. This policy will reduce the total number of extended backpacker visas by approximately 38,000 compared with figures in 2026.
In the 2025-26 financial year, 7,200 backpackers arrived in the NT, providing crucial seasonal labor. Tourism Top End executive Samantha Bennett warned the visa changes would severely
impact tourism, agriculture, and hospitality sectors, which rely heavily on these workers. “We need those workers who will come to the Territory in the three months we’re busy,” she said.
Federal shadow tourism minister David Littleproud criticized the visa caps, stating the policy would devastate the NT’s tourism industry and other parts of Australia unless the government reverses course. “It will bring the Territory to its knees and many other parts of the country to its knees unless they relent,” Littleproud said.
Backpacker Workforce and Seasonal Challenges
The NT tourism sector depends significantly on backpacker labor, especially during the compressed dry season running into the
quieter wet season. Operators face a shortened peak period to generate revenue ahead of months with less visitor activity. Rising fuel costs and disruptions caused by extreme weather events have further squeezed already tight profit margins.
Ongoing concerns over the management of key attractions, particularly in Kakadu National Park, add to the pressures. Longstanding issues like the closure of popular sites such as Twin Falls have affected the visitor experience and operators’ viability.
Political Engagement and Industry Advocacy
Tourism Top End representatives met with David Littleproud in Darwin for a roundtable to discuss these challenges. Operators emphasized the need for federal support both financially and
in immigration policy to stabilize the tourism workforce and secure the survival of small and medium enterprises ahead of the wet season.
Chaffe emphasized that without targeted assistance, many family-run tourism businesses and local employers face collapse due to the combined effects of visa restrictions, weather disruptions, and operational cost increases.
