Immigration Support for the Tourism & Hospitality Industry
New Zealand's labour shortage isn't a new issue. However, it has worsened for employers and businesses in the tourism and hospitality industry due to the impact of Covid-19.
The Government has made changes to rebalance the NZ immigration system. These changes aim to fill skill shortages after the pandemic led to NZ's closed borders.
The Government wants to help the New Zealand immigration system align with a national goal of increasing NZ business productivity and supporting economic growth. However, at the same time, NZ's hospitality and tourism industries are key to why so many overseas travellers choose New Zealand as a top destination, coming in as the 3rd most popular destination.*
What Is Happening In the New Zealand Labour Market?
As a part of the Government's rebalance announcement, the new Accredited Employer Work Visa (AEWV NZ) was introduced and requires employers to be accredited if they want to promote job vacancies overseas and hire migrants.
The AEWV scheme requires employers to pay a median wage of NZ$27.76 for migrant workers to qualify for an NZ working visa. The median wage will increase to NZ$29.66 in April 2023.
For an interim period, the Government has also implemented sector agreements to help employers fill skill gaps. These agreements allow some exemptions to the median wage requirements for hiring migrant workers under the AEWV NZ guidelines for specific occupations and sectors. This allows employers in the specific sectors an extension of time in order to make changes.
How Has the Rebalance Affected NZ Tourism & Hospitality?
Under the AEWV scheme, all employers, including those in the tourism and hospitality industry, had to meet all of INZ's requirements. However, the hospitality and tourism industry criticised this policy and claimed that the new thresholds were unrealistic.
Under the new AEWV Scheme, employers must prove they:
- Have been operating their business for at least 12 months.
- Are registered with Inland Revenue and operating in NZ
- Have a good record with INZ.
- Have a complete employment agreement that meets employment standards.
- Can pay migrant workers the salary you have offered them.
- Have systems that help ensure migrant employees comply with their visa terms.
- That there is no available New Zealand resident/citizen.
For the migrant workers to qualify for the AEWV, they also had to meet INZ's requirements:
- Work for an accredited employer.
- Be paid at least the median wage of NZ$27.76 per hour.
- Have a clean criminal history.
- Meet the health requirements.
- Have the required job qualifications and experience.
The Response From the Tourism & Hospitality Industry
Businesses across the country stated that it wasn't within their budgets and couldn't afford to employ workers at almost NZ$28 an hour for an entry-level position. This is a valid issue for New Zealand, not just businesses, as our economy relies widely on what tourism and hospitality produce.
Tourism plays a crucial role in New Zealand's economy. Before Covid-19, tourism generated a direct contribution of NZ$16.4 billion to the GDP and a further indirect contribution of NZ$11.3 billion to New Zealand’s total GDP annually. It's the country's biggest export industry in terms of foreign exchange earnings and accounts for approximately 20% of total exports.**It also employs one in seven New Zealanders.
The hospitality industry supports tourism and is essential for New Zealand's economic growth. While many businesses were closed or greatly restricted over the Covid-19 lockdowns, hospitality typically generated NZ$6.8 billion to GDP annually and NZ$14.6 billion through supplier purchases and staff expenditures.***
The Impact on the Tourism & Hospitality Industry
For months, restaurants have been forced to turn away patrons due to staff shortages. Unfortunately, this has also been the case for other hospitality establishments and parts of the tourism industry.
Staffing shortages have resulted in restaurants and hotels closing rooms, cutting menus and limiting occupancy to cope. The limited amount of staff has also put pressure on the existing staff to extend their hours.
The national worker shortage within the tourism and hospitality industry has already seen a massive increase in wait times. Opening hours have been limited, along with declining service quality due to overworked staff.
Overall, there are just not enough New Zealanders to fill the tourism and hospitality worker gap.
What Is the Future Of Tourism & Hospitality In NZ?
New Zealand's hospitality industry is entering its busiest time of the year, with summer approaching fast. It is estimated that this industry needs another 30,000 workers to join and for businesses to cope with the summer season.
"As the world recovers from COVID-19, labour shortages continue to be a persistent ongoing global symptom," Immigration Minister Michael Wood stated.
The build-up to summer and the staff shortage complications NZ has already faced have contributed to the Government's amendments to the AEWV and Working Holiday Visa rules. They are providing more support to the tourism and hospitality sector.
What Are the Immigration Rules Being Amended?
The new changes act as support to help the industry take practical steps towards New Zealand businesses working more productively and operating with more resilience. However, this support might not last forever but is just a temporary extension to allow the industry more time to transition.
Tourism & Hospitality Median Wage Exemption Extended
The Government initially responded to tourism and hospitality concerns in May 2022 and provided a threshold exemption of NZ$25 per hour until April 2023. However, they have announced that the median wage exception for tourism and hospitality will increase from NZ$25 to NZ$28.18 in April 2023.
The exception will end in April 2024, when roles in tourism and hospitality must be paid at the median wage of NZ$29.66.
Chef Qualification AEWV Requirement Removed
The Government removed the qualification requirement for chefs hired through an AEWV on 18 October 2022. This increases NZ's options and allows the country to recruit chefs without formal qualifications (equivalent to a New Zealand Certificate of Cookery Level) who are top-rated, high-skilled or experienced to come to NZ while labour market conditions are tight.
Seasonal Snow & Adventure Tourism Sector Agreement Announced
Following the threshold exemption, a new 'seasonal snow and adventure tourism' agreement has been announced to help employers find workers under the AEWV guidelines.
This sector's agreement aims to support the seasonal needs of migrant labour below the median wage, with a threshold of NZ$25 an hour, 90% of the median wage. This percentage gradually increases until the agreement ends in 2025.
Working Visa Holiday Changes
In August 2022, the Government announced changes to increase access to working holiday makers, meaning more people can visit and work in New Zealand.
Capped schemes not yet filled had their cap doubled on 8 September 2022 and remain open.
The Government also announced that the closed schemes have specific re-opening dates, as listed below.
- Malaysia - 8 September 2022
- Uruguay - 13 September 2022
- Argentina - 15 September 2022
- Chile - 22 September 2022
- Taiwan - 29 September 2022
- China - 11 October 2022
- Hong Kong - 18 October 2022
- Brazil - 20 October 2022
- Vietnam - 25 October 2022
- Mexico - 27 October 2022
- Philippines - 1 November 2022
- Hungary - 3 November 2022
- Slovakia - 8 November 2022
- Austria - 10 November 2022
- Poland - 15 November 2022
- Lithuania - 17 November 2022
- Peru - 22 November 2022
- Turkey - 24 November 2022
- Portugal - 1 December 2022
There are extra places for working visas added (and for schemes that are currently closed, extra places that will be added in the near future) for different working holiday schemes for various countries and territories, as listed below.
- 3000 - Korea
- 1200 - Czech
- 1150 - Malaysia
- 1000 - Argentina, China
- 940 - Chile
- 600 - Taiwan
- 400 - Hong Kong
- 300 - Brazil, Singapore
- 200 - Israel, Mexico, Uruguay
- 100 - Austria, Croatia, Estonia, Hungary, Latvia, Lithuania, Peru, Philippines, Poland, Slovakia, Slovenia, Thailand, Turkey, Vietnam
- 50 - Malta, Luxembourg, Portugal
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Sources
*According to Google's search results (as described by NZ Herald)
**Tourism Industry Aotearoa
***Hospitality New Zealand
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Latest Updates
Our team keep ahead of all the latest immigration developments and post updates regularly. Stay up to date by signing up to our newsletter and get these updates directly to your inbox.
Migrant Worker Residence
Today the government announced a pathway to residence for migrant workers who are living and working in New Zealand. Applications open on 1 December 2021 for the first wave who are eligible to apply. The second wave can apply from 1 March 2022. The deadline to lodge an application is 31 July 2022 or else they will miss out on this one off opportunity.
Skilled Migrants Opportunity
Today the government announced a pathway to residence for people living and working in New Zealand. Applications open on 1 December 2021 for the first wave eligible to apply. The second wave can apply from 1 March 2022. The deadline to lodge an application is 31 July 2022 or else you miss the boat.
New Employer Accreditation Process
The government has moved the introduction of the new employer accreditation process across to mid-2022. At the same time, the Minister of Immigration announced new work visa rules for migrant workers who are already in New Zealand and working full time.
Skilled Migrant Changes
The government has increased the median wage to $27 per hour from 19 July. Any Skilled Migrant residence application lodged after this date will need to include a skilled job offer that pays at least $27 per hour. For some lower-skilled occupations, the minimum pay rate increases to $40.50 per hour.
Work Visa Rules
From 19 July 2021
- The median wage used to assess Essential Skills Work Visa applications increases from $25.50 per hour to $27 per hour.
- Applicants paid below the median wage may be granted a work visa for up to 24 months. The usual 6-month visa validity restriction is suspended until mid-2022.
- In certain cases, the labour market test is waived and in some cases, it will still apply.
Work Visa Rules
From 30 June 2021
- Employer Accreditation and Approval in Principle applications are now closed.
- No new Employer Accreditation applications (including renewals) will be accepted until the new process goes live in mid-2022.
Employer Accreditation Becomes Mandatory
Employers of migrant workers must become accredited from 1 November 2021 before work visa applications can be processed. Most employers are not accredited. Those that are accredited will have to roll into the new system when it goes live in late September.
Work Visa Rules
From mid-2020 (delayed)
- Government to negotiate and introduce Industry Sector agreements setting minimum conditions for industries that heavily rely on overseas workers. Sectors include; residential care, meat processing, dairy, forestry, road freight transport, tourism, and hospitality. Construction, horticulture, and viticulture may also be included.
Skilled Migrant Changes
Skilled occupation "Dairy Cattle Farmer" spilt into three occupations. New occupations are: "Dairy Farm Manager", "Assistant Dairy Farm Manager" and "Dairy Herd Manager". Each sit at different skill levels, therefore, the award of points will depend on pay rates, job tasks and other requirements.
Work Visa Rules
From 15 February 2021
- Dairy Cattle Farmer job offers are now assessed by three new occupation descriptions: Dairy Farm Manager, Assistant Dairy Farm Manager and Dairy Herd Manager. Pay rates and job tasks will determine how long a work visa is valid. Take advice.
Skilled Migrant Changes
The government has deferred the fortnightly selection of Expressions of Interest from the Skilled Migrant pool for six months (to be reviewed in April 2021). Invitations to Apply for Residence remain suspended. The last selection from the Skilled Migrant pool took place on 18/03/2020.
Work Visa Rules
From 7 October 2020
- Introduction of "Oversupply" and "Undersupply" occupation lists used to assess Essential Skills Work Visa applications when a job offer pays less than the median wage.
- Employers offering jobs to migrant workers where an occupation is on the "Oversupply" list will not get Skill Match reports issued by Work & Income. Solid evidence of genuine attempts to find a local to fill the job will be critical for approval.
Skilled Migrant Changes
The government added four new occupations that are now regarded as skilled employment and may qualify for job offer points under the Skilled Migrant Category. These are:
Aged or disabled carer, Bicycle mechanic, Driller and Nursing Support worker.
Work Visa Rules
From 27 July 2020
- Essential Skills work visa applications are now assessed based on the current median wage (NZD $25.50 or more per hour.).
- Job offers paying below the median wage require employers to pass the labour market test* and secure a Skills Match Reports from WINZ (work visas granted for a maximum of 6 months).
Skilled Migrant Changes
Anyone invited by Immigration NZ to apply for residence under the Skilled Migrant Category where their invitation is dated between 1 November 2019 and 15 April 2020 (inclusive) has now been granted an additional six months to lodge their residence application.
Work Visa Rules
From 27 May 2020
- Regional Skill Shortage List goes live. 15 regions around New Zealand list occupations reflecting local skill shortages in each region. The labour market test is not mandatory provided the job offer matches the occupation and region plus the visa applicant has qualifications and/or work experience set out on the list.
Skilled Migrant Changes
The government has deferred the fortnightly selection of Expressions of Interest from the Skilled Migrant pool. This means Invitations to Apply for Residence are also suspended. Malcolm Pacific Immigration does not anticipate selections to resume until after the general election held on 17 October 2020.
Skilled Migrant Changes
Immigration NZ is now prioritising Skilled Migrant Residence applications where the main (principal) applicant meets the criteria:
- Has employment paying double the median wage which is currently NZD $51 per hour OR NZD $106,800 per annum; OR Has New Zealand occupational registration and is required to hold valid registration to lawfully carry out their job.
Work Visa Rules
From 24 February 2020
- Wage or salary thresholds increase for Essential Skills Work Visas applications lodged on or after 24/02/2020 (labour market tested; read more here).
- Higher Skilled employment increases to $38.25 or more per hour ($79,560 per annum*)
- Mid Skilled Employment increases to $21.68 or more per hour ($45,094 per annum*)
Work Visa Rules
From 7 October 2019
- Base salary to qualify for a Work to Residence Visa (WTR) supported by an accredited employer increases from $55,000 per annum to $79,560 per annum (or $38.25 per hour).
- Pay rates for WTR visas are now reviewed annually.
- Work visa applicants paid less than $79,560 per annum by accredited employers need to apply under other work visa categories.
Skilled Migrant Changes
The government recently added more occupations that are now to be regarded as skilled employment and may qualify for job offer points under the Skilled Migrant Category. In order to qualify for points, the job must be paying at least the current median wage (or higher for certain occupations) at the time the residence application is lodged.
Work Visa Rules
From 1 November 2021
- Work to Residence Visa (Accredited Employer and Long Term Skill Shortage) applications close.
- Applications lodged on or before 31 October 2021 will be processed under current visa settings.
Mandatory Vaccination Required for Travel
From 1 November 2021 anyone who is not a NZ citizen must be fully vaccinated (unless exempt) before travelling to New Zealand. Fully vaccinated means your last dose of vaccine was given at least 14 days before travelling and it was an approved vaccine.
Employer Accreditation
Applications for employer accreditation closed at the end of June 2021. Applications lodged before the closure date are still being processed. New applications for accreditation open on 9 May 2022. The process will be quite different to what employers have experienced in the past. Businesses will need to meet minimum standards.
2021 Resident Visa
Wednesday, 1 December is fast approaching and it is estimated that around 16,000 individuals and families can apply in the first wave for the 2021 Resident Visa opening next month. It is exciting for the thousands of people who have been waiting patiently to become residents that finally the finish line is in sight.
2021 Resident Visa
The first wave of applicants can apply from 1 December 2021. Around 16,000 applications are expected in this first wave. The second wave opens on 1 March 2022. In total, the government expects approximately 110,000 applications that will include about 165,000 people.
2021 Resident Visa
The second group of workers who can apply online for the 2021 Resident Visa that opens on 1 March 2022 are those who hold an eligible work visa and either meet "Settled", "Skilled" or "Scarce" as set out above. In total Immigration NZ estimate around 110,000 people will qualify to apply for this visa.
2021 Resident Visa
The first group of workers who can apply online for the 2021 Resident Visa that opens on 1 December 2021 are those that on 29/09/2021:
- Had lodged a residence application under the Skilled Migrant Category (SMC) or Residence from Work category; OR Had lodged an SMC Expression of Interest (EOI) in the SMC pool that included at least one dependent child aged 17 or above.
2021 Resident Visa
Is this the only requirement to qualify for residence? No. In addition to the eligible work visa criteria workers also need to be regarded as one of the following:
- Settled.
- Skilled.
- Scarce.
2021 Resident Visa
People who were lawfully in NZ (or in Australia when the travel bubble closed between April and July 2021) on 29/09/2021 need to meet the visa eligibility criteria:
- Workers in NZ who held an eligible work visa on or before 29/9/2021 and on the day they apply for residence; OR Applied for an eligible work visa on or before 29/9/2021 and the work visa application is subsequently approved and still hold an eligible work visa on the day they apply for residence.
2021 Resident Visa
The government has introduced a limited pathway to residence for people who are already living and working in New Zealand. Applications open on 1 December 2021 for the first wave of people eligible to apply. The second wave opens on 1 March 2022. The deadline to apply for the 2021 Resident Visa is 31 July 2022.
Critical Purpose Visitor Visas
A small number of critical health workers (taking up jobs for six months or longer) or specialist workers (taking up jobs that are for longer than six months) who were granted border exemptions may also have eligibility for the 2021 Resident Visa. They will need to have arrived in NZ and lodge a 2021 Resident Visa application.
Policy Decision Key Dates in 2022
- July 4. Applications open for the new Accredited Employer Work Visa.
- July 31. Applications for the 2021 Resident Visa close.
- August. Skilled Migrant Residence category scheduled to reopen.
- August. A new pathway to residence for people earning 200% or more of the median wage.
*Excludes high-risk countries.
Policy Decision Key Dates in 2022
- February 13. Fully vaccinated Kiwis plus certain other travellers entering NZ from the rest of the world* can skip MIQ.
- April 30. The border starts a phased reopen to fully vaccinated foreign nationals.
- April 30. The Productivity Commission reports back to the government on immigration settings.
- May 9. Applications open for mandatory Employer Accreditation.
*Excludes high-risk countries.
Work Visa Categories Closing
The work visa categories set to close are:
- Essential Skills Work Visa
- Essential Skills Work Visa – approval in principle
- Work to Residence (Talent – Accredited Employer)
- Work to Residence (Long Term Skills Shortage)
- Silver Fern Job Search Work Visa (closed October 2019)
- Silver Fern Practical Experience Work Visa.
The Green List
From September 2022 people holding job offers in a small number of occupations may apply for residence. Some occupations are a direct pathway to residence and others require a period of two years or longer before applying.
There are qualification and/or occupational registration requirements to meet. Establishing if an overseas qualification matches the NZ equivalent qualification before applying is paramount for success.