Tourism operators in Northern Territory’s Top End face financial collapse due to a delayed start to the dry season combined with rising fuel costs, reduced flights, and natural disaster cleanup expenses following extreme weather events earlier in 2026.
Impact of Federal Visa Caps on NT Workforce
The federal government’s new immigration policy caps working holiday visas at 45,000 for second-year and 5,000 for third-year visas nationwide, reducing Australia’s supply of backpackers by approximately 38,000 compared to 2026.
In the last financial year, 7,200 backpackers entered the Northern Territory, providing essential workforce support during the crucial three-month peak tourism period.
These visa reductions threaten to exacerbate labor shortages in
tourism, hospitality, and agriculture sectors in the NT.
Calls for a Dedicated Resilience Fund to Support Tourism Operators
During a roundtable meeting in Darwin with federal shadow tourism minister David Littleproud, Tourism Top End representatives advocated for a fund to help businesses cope with the coming wet season.
This fund would include tourism vouchers to boost bookings, targeted wage support, payroll tax relief, tax payment arrangements, and interest-free loans for viable operators facing cashflow issues.
Tourism Top End chair Chris Chaffe said, “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
added, “Small grants should also be available where taking on more debt is simply not a workable solution.”
Industry Leaders Urge Federal Government to Reverse Visa Policy
Tourism Top End executive Samantha Bennett highlighted the importance of backpacker workers, stating, “7,200 backpackers came through the NT in the last financial year. We need those workers who will come to the Territory in the three months we’re busy.”
Federal shadow tourism minister David Littleproud warned that the visa caps would “devastate” the industry and “bring the Territory to its knees,” urging the government to scrap or exempt the NT from these changes.
Littleproud also rejected claims that Coalition immigration policy
would hurt the NT economy, stating, “It’s not true to say that just letting people in is the right thing to do.”
Closure of Kakadu National Park Attractions Affects Visitor Experience
Kakadu National Park, managed by the Commonwealth and traditional owners, continues to experience closures of popular sites such as Twin Falls, limiting tourism options in the NT’s Top End.
Chaffe called for better management of Kakadu and assistance for operators facing increased costs from natural disaster recovery, reduced flights, and fuel prices, cautioning, “We need action before businesses close their doors.”
