Many tourism operators in the Northern Territory’s Top End fear they may not survive the upcoming wet season after a compressed and delayed dry season combined with federal government backpacker visa cuts.
Top End Roundtable Addresses Industry Threats
On or before 7 October 2026, representatives from Northern Territory tourism businesses met in Darwin with federal shadow minister for tourism David Littleproud to discuss industry challenges. Participants warned that numerous small and family-owned tourism operators face financial collapse in the coming months.
Key Challenges Impacting Tourism Operators
The Top End tourism sector is contending with multiple pressures: a late dry season delayed the peak tourism period, major weather events caused significant damage
requiring costly clean-up efforts, fuel prices have risen sharply, and airlines have reduced flights. These combined factors have compressed the tourism season and strained operator cash reserves.
Federal Immigration Policy to Cap Backpacker Visas
The federal government’s new immigration plan will cap working holiday visas at 45,000 for second-year and 5,000 for third-year applicants. This policy will reduce the total number of second and third-year backpackers by approximately 38,000 compared to 2026, sharply limiting the workforce during peak months.
Calls for Resilience Fund and Policy Revisions
Tourism Top End, which represents operators in the northern half of the NT, has urged the federal government to establish a dedicated resilience fund to help businesses navigate
the wet season. Chair Chris Chaffe said the fund should include tourism vouchers to boost bookings, targeted wage support, payroll tax relief, tax payment arrangements, and interest-free loans. He emphasized that small grants should also be available where further debt is unfeasible, adding, “We need action before businesses close their doors.”
Executive Samantha Bennett detailed that 7,200 backpackers visited the Northern Territory in the last financial year, highlighting the reliance on these workers during the three-month peak season. She warned the visa cuts will have severe repercussions on tourism, agriculture, and hospitality sectors.
David Littleproud echoed these concerns, calling for
the repeal of the working visa changes, stating, “It will bring the Territory to its knees and many other parts of the country to its knees unless they relent.” Nevertheless, he denied that the Coalition’s immigration policy would harm the NT economy.
Background Context on Tourism and Kakadu National Park
Kakadu National Park, managed jointly by the Commonwealth and traditional owners, exemplifies ongoing management challenges affecting tourism. Operator concerns over park accessibility, such as closures of popular sites like Twin Falls, add to the sector’s difficulties.
Impact on Local Tourism and Workforce Availability
Tourism operators warn the combined effects of a delayed dry season, visa reductions, and operational costs risk forcing many small and medium-sized
businesses in the Top End to close. These closures would reduce available tourism experiences and services during a season that is already shorter and less reliable, directly affecting travelers and the local employment landscape.
