A Call to Action: Seize a Larger Slice of the Pie
Established in 2018 Youth Tourism Victoria (YTV) is an organisation dedicated to promoting and supporting youth tourism in the state of Victoria, Australia. The organisation plays a key role in advocating for youth-focused travel experiences, creating partnerships within the tourism industry, and ensuring that Victoria remains an attractive destination for young visitors from around the world.
A 16% Cut in Approvals Will Hit Us Hard
Victoria’s economy will face significant challenges due to the newly announced 16% cut in Student Visa approvals across Australia. This cut means Victoria, more than other states, will feel the effects due to its heavy reliance on international students as a key economic driver.
Key Impacts
Economic Losses: International students currently contribute between AUD 5.06 billion and AUD 7.09 billion annually to Victoria’s economy, supporting 75,000 to 210,000 jobs. With a 16% reduction in Student Visa approvals, the number of international students in Victoria will decrease, resulting in economic losses ranging from AUD 750 million to AUD 1.78 billion and job losses between 12,000 and 33,600.
Economic Opportunities: Conversely, increasing WHV arrivals by 5-15% could generate between AUD 945 million and AUD 1.035 billion in additional economic contributions, helping to offset some of the losses from the student visa cuts.
This report highlights the substantial opportunities presented by the Working Holiday Visa (WHV) market to strengthen Victoria’s economy, while emphasising the strategic actions needed to mitigate the potential economic and employment impacts of the 16% cut in Student Visa approvals.
Victoria traditionally receives around 30-35% of Australia’s total international student arrivals. With the national cut, Victoria will experience a higher proportionate reduction in student numbers, which will directly impact its economy and job market. International students have long been a critical part of Victoria’s economy. They contribute significantly through tuition fees and living expenses, supporting a wide range of industries, from education to hospitality. However, the federal government’s recent announcement of a 16% cut in Student Visa approvals threatens this vital economic contribution.
Conversely, the WHV market, which brings in hundreds of thousands of young travellers each year, offers a potential avenue to mitigate some of these losses. WHV holders not only contribute economically but also travel more extensively across the state, spending regionally and supporting local economies outside metropolitan areas. Additionally, they play a crucial role in shoring up seasonal employment gaps in industries such as retail, agriculture and hospitality during busy periods. This report explores the potential economic impact of the 16% cut in student visas and the opportunities presented by increasing WHV arrivals
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