Tourism operators in the Northern Territory’s Top End are facing a high risk of business closures following a delayed dry season and planned federal government reductions to working holiday visas, according to www.abc.net.au. The combination of these factors is intensifying operational and financial pressures in the region’s tourism sector ahead of the wet season.
Roundtable Discusses Challenges Including Rising Costs and Flight Reductions
Representatives from the Top End tourism industry convened for a two-hour roundtable in Darwin with federal shadow minister for tourism David Littleproud to address sector concerns. Operators highlighted a difficult dry season marked by a delayed start to tourism activities caused by multiple major weather events.
Compounded by rising fuel prices and a decrease in flight availability, these factors have strained small and medium-sized tourism businesses throughout the region.
Federal Immigration Policy Caps Backpacker Visas, Shrinks Workforce
The federal government’s new immigration plan proposes caps restricting working holiday visas, requiring backpackers who want to stay beyond 12 months to enter a ballot system. Under this policy, only 45,000 second-year and 5,000 third-year working holiday visas will be issued nationwide. This represents approximately 38,000 fewer second and third-year backpacker visas than were granted in 2026. In the past financial year, 7,200 backpackers visited the Northern Territory, a vital workforce for peak tourism periods.
Tourism Top End Calls for Dedicated Resilience Fund Amidst Financial Strain
Tourism Top
End, representing operators in the northern half of the Northern Territory, has urged the federal government to establish a resilience fund to help businesses survive the wet season. Chair Chris Chaffe proposed a package combining tourism vouchers to stimulate bookings, targeted wage subsidies, coordinated payroll tax relief, tax payment plans, interest-free loans for businesses facing cash flow challenges, and small grants for those unable to incur further debt. “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.
Operational and Environmental Impacts Threaten Tourism Attractions
Tourism operators are
confronting clean-up costs reaching hundreds of thousands of dollars due to severe weather damage sustained throughout the region. Some businesses have ceased operations entirely because of the financial strain. Additionally, closures of prominent Kakadu National Park attractions, including Twin Falls—a park jointly managed by the Commonwealth and traditional owners—are causing concern regarding sustained visitor access and regional tourism viability.
Officials Warn Visa Cuts Will Devastate Tourism and Economy
Federal shadow minister David Littleproud warned that the proposed visa restrictions would “devastate” the Northern Territory’s tourism sector and economy, urging the Labor government to reconsider or scrap the policy. He said the changes “will bring the Territory to its knees
and many other parts of the country to its knees unless they relent.” Tourism Top End executive Samantha Bennett stated that the visa cuts would have “severe impacts” on the tourism, agriculture, and hospitality sectors across the Northern Territory. Bennett emphasized the need for backpacker workers during the Territory’s busiest three-month period.
Tourism Sector Dependent on Visa Holders and Faces Economic Uncertainty
The Northern Territory Government’s budget relies heavily on population growth, which is affected by immigration policies. The federal government’s immigration plan constitutes the largest reduction in immigration in Australian history, impacting the availability of seasonal workers crucial for tourism operations. Rising operational costs, natural disaster recovery, and restrictions
on backpacker workforce availability threaten the sustainability of many tourism businesses in the Top End.
