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Returning backpackers boost hospitality staffing shortages but it's not enough, business owners say

Business is bustling in the tourist town of Rainbow Beach in south-east Queensland, but a local restaurant owner says without international workers, they wouldn't be able to keep their doors open.

Leanne Modin has lived in Rainbow Beach for 30 years and owns three hospitality businesses in town but never imagined having so many customers.

"I've got one staff member who's working 70 hours a week," she said.

Ms Modin had already reduced operating hours due to the staffing shortage, which has continued to cripple small businesses across the country.

She said after being understaffed for 15 months, returning backpackers were finally helping fill the void.

"Of a business that's got 30 staff, to have seven of them international, that's a big thing," Ms Modin said.

"After Christmas, we're seriously going to sit down and look at probably closing two days a week just so that when we are open we've got well-rested staff."

The business is reliant on chance encounters for recruiting, like an employee finding three backpackers looking for temporary work while on a night out recently.

"If we hadn't had those girls, we wouldn't have been able to cope," Ms Modin said.

"Where are all the Australian workers? Why is it so hard after COVID?

"Everybody stopped working in hospitality; where did they go?

"They have to have gone somewhere but everybody is struggling for workers, not just hospitality."

Return of the backpackers

More than 100,000 Working Holiday Maker (WHM) visas have been granted since July, which is more than the figures for the 2021–2022 financial year and double 2020–2021.

Over the past six months, the number of WHM visas granted is on track to match pre-COVID levels.

Restaurant & Catering Australia chief executive Suresh Manickam said the uptick of international workers has helped struggling hospitality businesses keep their doors open.

However, she says more action is needed from the federal government to solve staff shortages impacting the nation.

"We need to make up for two years of zero immigration into the country," Ms Manickham said.

"In conjunction with this, we need more support in helping local Australians find jobs in hospitality, get the training they need, and to help put them on a career pathway that offers great pay, incredible opportunities and flexible work hours."

Ms Manickam said the federal government needed to process visas faster, as staff shortages remained particularly bad in remote and regional areas.

"After the borders reopened, we've seen a slow increase in staffing numbers in capital cities across Australia," she said.

"For regional and rural areas, however, it's been particularly tough but we expect that this will slowly rise now that working holiday visa holders are starting to come back."

A Department of Home Affairs spokesperson said visa applications were being processed as quickly as possible.

"The government recognises the importance of Working Holiday Makers [visas] to Australia's economic recovery during and after the COVID-19 pandemic," the spokesperson said.

 "In November 2022, 75 per cent of all Working Holiday Maker visa applications were finalised within nine days."

Here to help

Sunshine Coast cafe owner Rachel Blackmore said the number of international visitors applying for jobs and buying coffee had noticeably increased in the past two months.

"We're getting at least 10 resumes a week or more from international visitors. Through COVID there was literally none," Ms Blackmore said.

She said after struggling for staff during COVID, she now had a backlog of resumes for when she needed to hire.

Ms Blackmore hopes the number of international visitors continues to increase to also boost business.

"I do have a lot more confidence that there's more people coming through," she said.

"There's a good energy in the air and it's definitely hopefully going to pick up immediately after Christmas."

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