Opposition’s plan to cut overseas migration to ‘adversely’ impact local pubs and restaurants, industry warns

WA’s hospitality industry has said immigration cuts risk damaging local pubs, restaurants and hotels, warning it could lead to shortened trading hours and reduced services to customers.

The industry is concerned that the Coalition’s hard line on immigration could create significant labor pressures for hospitality businesses, which are already facing other challenges such as labor shortages and rising operating costs.

In his response to the Federal Budget last month, Liberal Leader Angus Taylor said he wanted to limit net overseas migration through the number of new homes completed in Australia and promised to make one of the biggest cuts to immigration in the country’s history.

Australian Hoteliers Association WA CEO Bradley Woods said there were other tools to help increase housing supply, including condos for the transition from short-term stays to the long-term rental market.

He pointed out that there are close to 10,000 homes across WA listed on short-term rental platform Airbnb.

Mr Woods said: “We have no control or influence over the completion of housing, so why should our industry suffer?” he said.

“If businesses cannot access sufficient workers, this can lead to reduced working hours, reduced services and delayed investment, so it is important that housing policy also recognizes the workforce needs of sectors such as hospitality and tourism.”

A Senate inquiry last month heard that around 40 per cent of the AHA and Hospitality Australia workforce hold some form of visa. In some venues, this figure can go up to 75 percent of the staff.

Mr Woods said accommodation and hospitality was one of Australia’s largest job-creating sectors, supporting almost a million jobs nationally and 100,000 in Western Australia.

“Hospitality has always been a major employer of young Australians, but access to an international workforce has become increasingly important to maintain normal working hours and service levels,” he said.

“In regional and remote Western Australia, migrant workers, especially holidaymakers, fill important roles that local people cannot fulfill.”

Accommodation Australia chief executive James Goodwin said Mr Taylor’s policy would “negatively” impact his industry, which relies on immigration for chefs, housekeeping, general managers and accountants.

“This will reduce our capacity, how many rooms can be offered, or it will also stop long-term investment in the economy,” he said.

“If you need to open a new hotel or undertake a major refurbishment and you are not sure you can staff the property, then you are unlikely to pursue that development.

“If the opposition wants to continue with such policies, it is vital that there is a separate hotel sector employment agreement to ensure our sector is excluded from these figures.”

The hospitality industry has also criticized Finance Minister Jim Chalmers’ capital gains tax overhaul, which would scrap the 50 per cent deduction and impose at least a 30 per cent tax on gains from the sale of shares and business assets.

It is feared that hotel owners who took financial risks to revive pubs or keep a hotel open will now face materially higher taxes when they retire, refinance or pass the business on to the next generation.

“Measures that make people anxious about investing or anxious about what their household income will be certainly reduce people’s sense of confidence in traveling and staying in our properties,” Mr Goodwin said.

Mr Woods said the hospitality industry was a highly capital-intensive sector and operators were constantly investing in venue improvements, hospitality assets, equipment and new infrastructure to remain competitive.

“There are also concerns about expansion, succession planning and the impact on the ability of small and medium-sized or family businesses to transition and continue to invest in the sector,” he said.