Australia's Hotel and Tourism Outlook This 2022

The Federal Budget of Australia for 2022-2023 provides some targeted support for businesses in the travel and hotel industry. In addition, the investment in trainee programs and efforts to minimise the cost of living for Australians provide many Australians hope for the future. 

According to Pacific CEO Sarah Derry, "the budget will help the economy, households and community, and is a good step forward."

"We urge the Government to do more for our cities to help them return to stability and to support the skills shortage."

Michael Johnson, the Chief Executive of Tourism Accommodation Australia (TAA), was optimistic about this year's budget's effect on the hospitality industry. However, he also shared his setbacks in unnoticed areas. 

"We were hopeful that we would see a reduction in the beer excise—we haven't seen that, which is disappointing," Johnson told HM (Hotel Management).

"We were also hopeful of some support with FBT in food, beverage and accommodation, which hasn't gone through either. From that perspective, it's been a little frustrating."

International Employees 

The budget has approved an additional 11,000 Working Holiday Maker visas, which is good news for the hospitality industry, which has been crippled by a labour shortage due to border closures. 

Accommodation Association of Australia (AAoA) President, Leanne Harwood, welcomed the move.

"Our sector, more than most, is struggling with the loss of skills and people across all levels," Harwood said.

"While the Accommodation Association continues to invest in developing our own strategies to attract, retrain and retain people, we applaud the increase of country caps for work and holiday visas by 11,000 places. Working holiday makers make up an important part of our workforce, filling 250,000 jobs prior to the impact of COVID."

The AAoA and TAA agreed that it was disappointed that the Working Holiday Maker visa rebate scheme, which is due to end on 19 April, will not be extended.

"[TAA has been] asking for an extension of the incentives for Working Holiday Makers and international students put in place this year to make Australia a more attractive destination," Johnson said.

"We're still working with the government on that, and hopefully, we will have some success."

Paul Hutton, the Vice President of Hilton APAC Area and Head of Australasia, expressed the need for more government action in terms of labour shortages. 

"Our team members are at the core of all that we do, and the availability of labour is the single biggest challenge for our industry right now," Hutton said.

"The industry as a whole has been impacted by the pandemic, and retaining, and re-hiring strong talent is absolutely critical to our recovery."

"Although the relaxation of working visa laws is welcome, we need to see investment in our industry and encourage the Australian Federal Government to do everything they can to expedite visas for hospitality professionals, international students and backpackers."

A Boost in Skills 

The budget included  $365.3 million to create an extra 35,000 trainees to address the country's skill shortage. This is also an extension of the Boosting Apprenticeship Commencement wage subsidy.

As per Johnson, this will be vital in surviving the labour meltdown. 

"I think the increased focus on skills [in this budget] will assist us. There's a lot of indirect assistance that will flow through to industry," he said.

Moreover, Frydenberg also announced $1.6 billion in tax relief to support businesses with less than $50 million yearly turnover to upskill their workers and shift to digital. 

"[AAoA is] currently working our way through the detail of various small business incentives, including the ability to instantly write-off assets which are in place until 30 June 2023, along with the opportunity for businesses with an annual turnover of less than $50 million to benefit from a range of initiatives under the Digital and Skills Tax Boost package," Harwood said.

The $146.5 million budget for tourism includes the formerly announced $75.5 million for tour providers and travel agents. And $60 million for marketing to bring back international tourists, while the $6.8 million will go to the government's Thrive 2030 strategy. 

In addition, Johnson pointed out that additional funds for Tourism Australia are a sure win. 

"That is critical and something that was in our pre-budget requests," he said. "They need that additional funding in such a competitive international arena. That's certainly been positive."

Harwood welcomed these tourism initiatives saying they would help Australia stand out.

"The challenges our hotels, motels and accommodation providers face are not disappearing any time soon, and the sooner we see tourism normalise, the better," according to Harwood.

RosterElf: Rostering Made Easy 

RosterElf’s cloud-based payroll and rostering software truly is a game-changer. Say goodbye to roster conflicts and chase employees for their availability to work. Instead, employees can easily update their availability to work and notify managers about it through a smartphone app. 

Staff set the times and days they can work, and RosterElf does the rest. Our software then automatically suggests available employees to fill shifts. 

What are you waiting for? Time to take your rostering and payroll game to the next level and boost your business’ performance. Call us now at 1300 353 000, and our team will be more than happy to assist you. 

To get a clearer view of how our app works, enjoy 30-day access to our tool for free!


Have Questions?

We Have The Answers

What impact will the 2022-2023 Federal Budget have on Australia's hotel and tourism industry?

The 2022-2023 Federal Budget provides targeted support for the hotel and tourism industry, including additional funding for tourism marketing, support for businesses, and an increase in Working Holiday Maker visas. These measures aim to alleviate labour shortages, enhance skills, and stimulate international tourism.

How does the increase in Working Holiday Maker visas benefit the hospitality sector?

The additional 11,000 Working Holiday Maker visas will help address the labour shortage in the hospitality sector by bringing in more international workers. This is crucial for the industry, which has struggled with staffing issues due to pandemic-related border closures.

What are the key budget measures to address skill shortages in the hotel industry?

The budget allocates $365.3 million to create an extra 35,000 traineeships and extends the Boosting Apprenticeship Commencement wage subsidy. This investment aims to enhance skills development and provide a steady stream of qualified workers for the hotel industry.

How will the budget's tax relief measures support small businesses in the tourism sector?

The budget offers $1.6 billion in tax relief to businesses with annual turnovers below $50 million, facilitating worker upskilling and digital transitions. This includes asset write-offs and the Digital and Skills Tax Boost package, helping small businesses enhance their operations.

What are the tourism-specific initiatives included in the 2022-2023 Federal Budget?

The budget includes $146.5 million for tourism, with $75.5 million for tour providers and travel agents, $60 million for international marketing, and $6.8 million for the government's Thrive 2030 strategy. These initiatives aim to revive the tourism industry and attract international visitors.

How are industry leaders responding to the 2022-2023 Federal Budget?

Industry leaders like Sarah Derry and Michael Johnson are optimistic about the budget's impact on the economy and hospitality sector. However, they express concerns about unaddressed areas such as the beer excise and support for food, beverage, and accommodation.

Important Notice

The information contained in this article is general in nature and you should consider whether the information is appropriate to your needs. Legal and other matters referred to in this article are of a general nature only and are based on RosterElf's interpretation of laws existing at the time and should not be relied on in place of professional advice.

RosterElf is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by us concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article.

RosterElf disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on this information.