Tourism operators across the Top End of the Northern Territory fear multiple business closures during the approaching wet season after a challenging peak period in 2026 and upcoming changes to backpacker visa arrangements. Representatives urged the Federal Government of Australia to implement a dedicated resilience fund to offset the financial strains.
Federal Government’s New Visa Policy
The immigration policy introduced caps on working holiday backpacker visas, aiming to limit overall immigration. Under the new system, second-year backpacker visas will be capped at 45,000, while third-year visas will be limited to 5,000 annually. This represents a cut of about 38,000 fewer second and third-year backpackers compared
to 2026.
Backpackers wishing to stay beyond 12 months will be subject to a ballot system to allocate visas under the new quota framework.
Operational and Environmental Challenges
Tourism Top End members highlighted impacts from a delayed start to the tourism season caused by several major weather events earlier in 2026. These unforeseen environmental disruptions, combined with soaring fuel prices and a reduction in flight availability, have increased operational costs. Some operators face clean-up expenses in the hundreds of thousands of dollars due to damage from extreme weather.
These factors compressed an already seasonal dry season, crucial for business revenue, diminishing cash reserves among
small and medium enterprises.
Backpacker Workforce and Economic Impacts
In the last financial year, 7,200 backpackers visited the Northern Territory, filling critical roles in tourism, agriculture, and hospitality. Samantha Bennett, a Tourism Top End executive, said, “We need those workers who will come to the Territory in the three months we’re busy.” The reduction in available second and third-year working holiday visas threatens to reduce essential seasonal labor during peak business periods.
Calls for Financial Support and Political Responses
Tourism Top End chair Chris Chaffe called for a dedicated federal fund to help businesses survive the quiet months of the wet season. He detailed a suggested package including tourism vouchers designed to
stimulate bookings, targeted wage support, payroll tax relief, tax payment arrangements, interest-free loans for businesses facing temporary cashflow shortages, and small grants where debt is not viable.
Chaffe emphasized the urgency: “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 also highlighted the need for better management of Kakadu National Park, a major tourism destination co-managed by the Commonwealth and traditional owners, citing longstanding operational challenges and closures of popular sites such as Twin Falls.
Federal shadow minister for tourism David
Littleproud attended a two-hour roundtable with Top End tourism operators in Darwin. He strongly opposed the backpacker visa cuts, warning, “It will bring the Territory to its knees and many other parts of the country to its knees unless they relent.” Littleproud urged the federal Labor Government to abandon the visa caps, describing the impact on the industry as devastating. He also rejected claims that expanded immigration was necessarily detrimental, stating, “It’s not true to say that just letting people in is the right thing to do.”
