Businesses in the Northern Territory are struggling due to a 30 per cent drop in occupancy rates with some forced to close down, according to a report on NT News.
Alice Springs’ Toddy’s Backpackers is closing its doors due to the steady fall in backpacker numbers over this year. A report by the Australian Hotels Associations (AHA) said hospitality traders in Darwin were down 20 to 30 per cent on the previous year.
The AHA says things are set to get much worse from July 1, 2016 when working holiday visa holders will lose the tax-free threshold of $18,000 and be required to pay 32.5 per cent tax from the first dollar earned.
The report states that budget travellers are already turning their sights to New Zealand and Canada, which have cheaper visas with less stringent requirements. A Working Holiday Maker visa in Australia is $440 compared with $150 in Canada.
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