VISA COST WORRYING INDUSTRY

Immigration New Zealand is planning to double the costs of work visas to close a $43 million deficit – a move which has the hospitality industry worried.

The price of a work visa is set to rise 54 percent, with seasonal workers, those on working holidays and humanitarian schemes exempt.

There will also be an increase in the employer accreditation fee – currently sitting at $1775 – which allows companies access to a streamlined recruitment process for workers on migrant visas. The proposal does not specify how much the increase will be, but it also has potential employers worried.

Submissions on the proposal, which closed at the end of July, show that the increases are almost universally regarded to be a bad idea within the hospitality industry.

Restaurant Association CEO Marisa Bidois said that virtually all 2000 members of the association opposed the move.

"Most believe that this would intensify and increase the pressure on an already challenging work recruitment market for our industry,” she said. “The majority of our members as well believe that an increase in fees would act as a deterrent for prospective migrant workers coming to New Zealand."

In a survey earlier this year, the Restaurant Association released the results of a survey asking members what they thought would be the most significant challenges facing the industry in 2018. Lack of skilled employees was ranked as the number one challenge for hospitality business owners, with worries about the new government changing immigration policy playing into those fears.

“Skilled migrants play a crucial role in supporting the shortfall of workers in the hospitality industry, so it is important that the industry can continue to employ migrant workers where no suitable New Zealand candidates can be found,” Bidois said at the time.

Bidois met with the Immigration Minister earlier this year where he gave his assurance that government will continue to work with businesses to ensure they can access the skills needed to remain viable in business.