Northern Territory tourism businesses are at serious risk of closure after multiple extreme weather events delayed the start of the dry season, compressing the tourism peak period and reducing operating time and cash reserves for many operators.
Proposed caps on working holiday visas by the federal government threaten to exacerbate workforce shortages. The new immigration plan limits second-year backpacker visas to 45,000 and third-year visas to 5,000 nationally, resulting in about 38,000 fewer backpackers arriving beyond the first year compared to 2026.
Tourism Sector Seeks Federal Resilience Fund
Tourism operators in the Northern Territory’s Top End have urged the federal government to establish a dedicated resilience
fund to help businesses survive the less active wet season months ahead. The fund would include tourism vouchers, targeted wage support, payroll tax relief, tax payment arrangements, interest-free loans, and small grants for operators unable to take on additional debt, according to Tourism Top End chair Chris Chaffe.
“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,” Chaffe said during a roundtable meeting in Darwin attended by tourism representatives and federal shadow minister for tourism David Littleproud.
Operational Challenges: Rising Costs and Natural Disaster Recovery
Operators outlined ongoing challenges including
costly fuel prices, reduced flight availability, and natural disaster recovery expenses amounting to hundreds of thousands of dollars. The delayed dry season compressed the tourism season, reducing operators’ ability to generate revenue during peak months.
Kakadu National Park, a major Northern Territory attraction managed jointly by the Commonwealth and traditional owners, also faces management issues impacting tourism operators reliant on the park.
Political Responses and Visa Policy Impact
Federal shadow minister David Littleproud criticized the immigration policy changes and called on the Labor government to abandon the visa caps, warning they would “devastate” the Northern Territory’s tourism industry and bring it “to its knees.” He denied
that the Coalition’s proposed immigration plan would negatively impact the Territory’s economy.
Tourism Top End executive Samantha Bennett emphasized the severe effects of visa limits on the Territory’s tourism, agriculture, and hospitality sectors. She noted that 7,200 backpackers arrived in the Northern Territory during the last financial year and stated, “We need those workers who will come to the Territory in the three months we’re busy.”
Impact on Small and Family-Run Businesses
The pressure from the delayed dry season and reduced workforce availability is heavily affecting small and family-operated tourism businesses, which dominate the Northern Territory tourism sector. Many operators fear closures if immediate financial support
and policy adjustments are not implemented.
