In Far North Queensland the school holiday tourist season is booming but businesses fear they will not be able to keep up with demand in future.
Following the federal government's changes to working holiday visas, Crystalbrook Collection chief executive Geoff York said his staff were already hesitant to stay.
"We've had some second-year working holiday-makers leave already," he said.
Mr York said 45 per cent of the company's 500 employees across its Cairns hotels, restaurants, bars and day spa were on working holiday visas.
But he said many of those workers would not risk another six months of regional work to "potentially qualify" for the third-year ballot.
"It's a one in six chance that you'll qualify, so that's not good," Mr York said.
He said the industry could face shortages similar to those experienced during the COVID-19 pandemic and that operating at full capacity would not be possible despite "tremendous demand".
"I've got two 300-room hotels and I may only be able to fill it to 250 rooms," Mr York said.
Backpackers wanting a second-year working holiday visa must work 88 days in regional or remote Australia.
Under the changes progressively being rolled out over the next 12 months, 462 visas will be capped, and applicants will have to enter a ballot when applying for first, second and third-year visas.
Safety issue
Tropical North Tourism said the industry in northern Australia wanted the government to scrap the changes.
"It is our school holidays — this is one of our peak seasons and we've got staff who are leaving the region," chief executive Mark Olsen said.
He said working holiday-makers from various countries brought language skills that helped keep visitors safe.
"Whether that's skydiving, bungee jumping, diving, snorkelling, whitewater rafting, we need to be able to speak to them effectively in their language," he said.
Mr Olsen said the industry also relied on workers staying long enough to build skills in roles such as dive masters.
He said the argument for housing was not relevant in the Far North.
"Ninety per cent of their accommodation is in a hostel or on a farm, so they are not a significant contributor to a housing shortage," Mr Olsen said.
Cairns Chamber of Commerce CEO Patricia O'Neil said the cuts would also be "devastating" for aged care, childcare, labour and construction.
Higher food costs
FNQ Growers president Joe Moro said the government had "basically terminated the whole process of the working holiday visa" for the farming sector.
He said working holiday-makers made up about a third of the 15,000 workers on Far North Queensland farms.
As Australia's "third-biggest fruit bowl", growers relied on the international visitors to fill gaps during peak harvests, Mr Moro said.
He said workers would be less willing to do the "hard work" on farms for six months when a third year was not guaranteed, preferring to visit the region as tourists.
"The better people and the people that love staying in Far North Queensland want to do a second and third year," Mr Moro said.
"They will not do that anymore."
With lychee season about to start, he said growers were worried about having enough staff and that the shortage created a safety issue for other staff, who were at risk of being overworked.
Mr Moro said farmers would absorb the costs in the short-term, but some crops might not be harvested.
"At the end of the day consumers will pay for it with higher prices," he said.
Pacific workers
Federal Pacific Island Affairs Minister Pat Conroy said Pacific workers were the answer to filling gaps left by working holiday-makers in regional Australia.
"We've got thousands of Pacific Islanders who are ready to do these jobs," Mr Conroy said.
The minister said bringing in Pacific workers was "in Australia's national interest" and preferable to recruiting from other parts of the world.
Leichhardt MP Matt Smith urged other parties to "come to the table" so a better visa system could be decided upon.
"Until such a time as that happens, we're left with very few levers that we're able to pull here," he said.
Mr Smith said he would keep working with the local tourism and hospitality industry in the meantime to ensure they get the workforce they need.
Meanwhile, Queensland Sport Minister Tim Mander said the federal government's proposed changes were "crazy", but would not affect construction and preparation for the 2032 Brisbane Olympics.
"We will be ready, not just here in Cairns, but right across the state," he said.
"Over the next five and a half years you will see much more progress and a whole range of different issues to show you that we are ready for the Games."
