Google AI


Modern Australian

Working holidaymakers bring in $3bn each year – so, how will Australia ensure they come back?

  • Written by: Sarah Gardiner, Deputy Director, Griffith Institute For Tourism, Griffith University
Working holidaymakers bring in $3bn each year – so, how will Australia ensure they come back?

Working holidaymakers will be one of the first international visitor markets to return to Australia in 2022.

But as global travel slowly resumes and many young people start thinking about working overseas again, global competition for this market will be intense. Australia will need to out-compete other destinations to bring working holidaymakers back, particularly those from Europe.

There were more than 300,000 working holidaymakers in Australia per year before the pandemic. The absence of these workers resulted in a loss of more than A$3.2 billion in visitor spending in 2020. It has also created critical labour shortfalls, particularly in regional Australia.

With borders reopening, the Australian government needs to rethink its working holiday program. It needs not only to make it easier for young travellers to come back, but also have a better understanding of their goals and expectations of a fulfilling working holiday experience.

Working holidaymakers stay longer and spend more

The working holiday visa program was established in 1975 as a cultural exchange initiative. Working holidaymaker visas are available for young people (mostly aged 18 to 30) and typically last for one year, though there can be opportunities to extend this. Australia now has reciprocal agreements with 45 countries.

The program has remained open throughout the pandemic to people from eligible countries. Yet, visa applications declined by an astonishing 99.5% in 2020. People were free to apply for working holiday visas, but the closed borders prevented them from actually coming.

Working holidaymakers spend more and stay longer than any other international visitor. On average, they spend A$10,400 per trip and stay 149 nights. In comparison, other international visitors to Australia spend A$5,211 per trip and stay 32 nights, on average.

One-third of working holidaymakers come from the UK, Germany and France. However, there is a growing demand in Asia. In 2019, almost 29% of working holidaymakers were from Japan, South Korea and China.

Combining study with a working holiday is particularly attractive for young people from Asia. As such, reactivating this market after the pandemic is critical to rebuilding Australia’s international education sector.

According to Tourism Australia, the most popular jobs for working holidaymakers are waiter, farmhand, construction worker and childcare worker. New South Wales, Victoria and Queensland were the most affected by the absence of these visitors – the three states accounted for 83% of working holiday jobs in 2019.

But this doesn’t mean working holidaymakers stay in capital cities. In fact, they disperse more widely around the country than other international visitors.

These travellers have been sorely missed in regional Australia, which have suffered from crippling labour shortages during the pandemic. Cairns, Port Douglas and other areas in northern Queensland have been the most severely affected.

This year, the Queensland government launched the A$7.5 million “Work in Paradise” scheme, offering a A$1,500 incentive to lure young Australians to work in tourism and hospitality jobs in regional Queensland.

Extending this program to overseas workers could be instrumental in bringing foreign working holidaymakers back to Queensland as borders reopen.

How Australia can bring them back

As a first step to restarting this market, the Australian government has removed the visa application charge for those working holidaymakers who were previously granted a visa but were unable to come to Australia because of the pandemic.

They have also relaxed some visa requirements, such as allowing working holidaymakers to work for one employer for up to 12 months (up from six months previously). This is aimed at encouraging holidaymakers to take jobs in the tourism and hospitality industry.

Negotiations are also underway as part of the Australia-UK free trade agreement to extend the reciprocal working holidaymaker agreement between the countries. This includes increasing the age eligibility from 30 to 35 years, and having no job-specified work requirements. The visa duration could also be extended from one to three years.

But luring working holidaymakers back will require more than just loosening the rules. We need to delve deeper into what motivates these young people to take a working holiday trip, particularly to Australia.

In the past, these travellers have worked in low-skilled, low-paid jobs. This experience has also been seen as a “gap year” between high school and university.

Read more: Morrison's opening of the door to international students leaves many in the sector blindsided and scrambling to catch up

But those in Generation Z have different life aspirations than previous generations. Many are increasingly focused on kick-starting their careers, and taking a year off to travel abroad may be less attractive.

So, for destinations like Australia, it’s important to offer opportunities for young people to use their working holiday to gain critical skills and experience for their careers, not just make money to travel. The Gold Coast-based Global Work and Travel Company, for example, now offers overseas internships so young people can advance their professional skills while gaining international travel experience.

Internships are one way to give young travellers different work experiences. Shutterstock

Some backpacker accommodations have also closed or shifted to other purposes during the pandemic. So, one thing local leaders can do is ensure there is adequate low-cost accommodation to support returning travellers.

The government also needs to make it affordable and easy to travel to Australia. Subsidising airfares to get them here, making it easier to find job vacancies, and providing low-cost or free transport out to the regions would help.

Employers also need to ensure holidaymakers are well-treated and have an enjoyable work experience. This requires stronger mechanisms to ensure employers are complying with the legal requirements around fair pay and adequate workplace conditions for those on temporary visas.

Improving the working holiday experience can have long-term benefits for the country. Research shows that many visitors develop a deep emotional attachment and affinity for Australia during an extending working holiday stay and return multiple times throughout their lives.

They can develop an understanding of Australian society and our economic and business practices during their experience. As such, they can help build future trade and investment opportunities between Australia and other countries.

So, making working holiday travel easy, fun and safe is not only vital to getting Australia’s tourism industry back on track – it’s critical for the country’s long-term engagement with the world. We need to make this a priority in 2022.

Authors: Sarah Gardiner, Deputy Director, Griffith Institute For Tourism, Griffith University

Read more https://theconversation.com/working-holidaymakers-bring-in-3bn-each-year-so-how-will-australia-ensure-they-come-back-172771

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...