Cairns business and tourism operators are warning that proposed changes to Australia's Working Holiday Maker visa program could create serious workforce problems across Far North Queensland, particularly for tourism, hospitality and other industries that rely on seasonal and temporary workers.

Reports of possible changes to the visa system have raised concerns among businesses across the region. Options being considered include reducing the period some working holiday makers can remain in Australia from 12 months to six months and removing access to second- and third-year visa extensions. However, no final decision on these proposed changes has been announced by the federal government.

Cairns business operators say working holiday makers have become an important part of the local workforce because many tourism and hospitality businesses struggle to recruit enough Australian workers for available positions. The issue is particularly significant during busy tourism periods, when restaurants, catering companies, accommodation providers and other visitor-focused businesses need additional staff.

One Cairns hospitality operator said working holiday makers make up around half of the front-of-house workforce at one of his businesses. His businesses employ approximately 40 working holiday makers over the course of a year, and he argued that removing access to these workers could force operators to reduce opening hours or scale back services.

The concern extends beyond individual businesses. Tourism is one of the major economic drivers of the Cairns and Far North Queensland region, with restaurants, hotels, tour operators, attractions and other businesses depending heavily on visitor numbers and the ability to provide services.

Tourism representatives have also warned that a shortage of workers could affect the visitor experience. If businesses cannot recruit enough employees, they may have difficulty operating at full capacity, particularly during peak periods. Some operators could potentially reduce trading hours or limit the number of customers they can accommodate.

The issue is also relevant to regional agriculture, where temporary workers play an important role in seasonal operations. Industry representatives say the availability of working holiday makers helps businesses fill positions that can be difficult to recruit for locally.

The proposed changes come as the federal government works to reduce net overseas migration and manage visa demand. Working holiday visa applications from a number of countries have faced restrictions or delays, adding to uncertainty for businesses planning their workforce requirements.

Federal representatives have acknowledged concerns raised by tourism industry groups and indicated that the government remains focused on ensuring Australia has the workers required by key industries. Officials have also pointed to the importance of maintaining a migration system that supports Australia's broader workforce needs.

For Cairns, the debate is particularly significant because the local economy is closely connected to international and domestic tourism. Businesses rely on a steady supply of workers to keep restaurants, accommodation, tours and other services operating during periods of high demand.

Industry representatives are calling for any changes to be carefully considered and for tourism and regional businesses to be protected from sudden workforce shortages.

While the proposed visa changes remain under consideration and have not been formally introduced as a final policy, the response from Cairns businesses highlights the potential local economic consequences of changes to Australia's temporary migration and working holiday programs.