It's time to work and play in Australia

The backpackers are coming back – and Australia’s hospitality industry is rejoicing.

Locked out by Covid biosecurity regulations, students and working holidaymakers are now being welcomed back by an industry that has been chronically short of bar and café staff, hotel and motel workers.

Travel agents will need to take note, as accommodation options are going upmarket to attract backpackers, flashpackers and others heading for Australia to work and play.

Australian Hotels Association national CEO Stephen Ferguson said more than 100,000 positions were vacant across the sector nationally and hotels were being forced to close on certain days or reduce hours during their busiest period because “they simply do not have the staff”.

Pre-Covid, more than 250,000 working holidaymakers were employed each year in Australia, working in pubs, hotels and restaurants across the country

February 2022 marked the removal of the final major barrier for vaccinated international visitors into Australia, and in a bid to alleviate labour shortages and reduce disruption to the supply chain, the federal government is actively encouraging backpackers and international students back into the country through financial incentives.

These incentives include, for a limited time, waiving working holidaymaker visa fees.

Global hostel brand, Selina, has bedded down in Melbourne.

As backpackers return, CBRE Hotels says demand for high-quality hostel assets has remained strong despite the challenges faced by the industry.
The past year has seen several major groups enter the market, among them the Drifter Hospitality Group, which has partnered with Intrepid Travel to offer hostel accommodation across Australia and New Zealand.

Event Hospitality, known for its Rydges, QT and Atura hotel brands, has also entered the hostel accommodation industry after completing its takeover of New Zealand group Jucy Snooze. The group is known for its unique capsule-style sleeping pods.

Another major entrant is the international hostel giant Selina, who made its Australian market entry in 2021 with the Selina Melbourne, a 181-bed hostel comprising a library, cinema room, dining and kitchen area, basement bar, free Wi-Fi, live music and co-working space. Selina even offers free residency to filmmakers worldwide.

“The new asset highlights the evolution these groups are making in hostel accommodation offerings and how operators have adapted their assets in recent times,” said Hayley Manvell, associate director, CBRE Hotels.

As overseas travellers return to Australia, the federal government has released an outstanding A$75.5 million (US$56 million) approved as part of the Covid-19 Consumer Travel Support Programme.

Welcoming the extra support, Australian Tourism Export Council managing director, Peter Shelley, said, “While international visitors are now free to come to Australia, our members estimate the gap between borders re-opening and the point at which they are likely to see any meaningful business will be six to 12 months.

“This additional funding will help our ITO’s get over that last hurdle and back into the market providing support in re-tooling these businesses with the experienced staff and booking conversion activity that will be required to rebuild Australia as a destination.”