One of Australia’s largest hospitality groups has pushed back against growing calls to cut immigration, warning pubs, hotels and tourism operators would struggle to find staff without migrant workers.

The Australian Hotels Association (AHA) has launched a fresh advertising campaign as immigration becomes a central political issue, with Labor, the Coalition and One Nation all proposing measures to reduce migration.

The AI-generated ad begins with a man standing in front of a giant red button beneath a sign reading: ‘Press button to run Australia without migrant workers.’

‘What’s the worst that could happen?’ he asks before pressing the button.

The campaign then shows a series of comic consequences, including customers forced to clean hotel rooms themselves, pubs unable to find chefs and supermarket shoppers paying $47 for an apple.

‘As changes to Australia’s migration policy are being considered, it’s important to understand the real economic and social impact of any changes, particularly in regional NSW,’ the association said on social media.

‘Employing staff from overseas is rarely the first choice for NSW hotels. But when a position can’t be filled locally, there is often no alternative, and the cost is significant. Sponsoring an overseas skilled worker such as a chef costs a venue around $35,000.’

The group also defended working holiday makers, stating they play a critical role in regional Australia.

The AHA released an artificial intelligence ad campaign criticising moves to reduce migration 

‘Working holiday makers are also essential. They are motivated, mobile and willing to travel to wherever seasonal work exists in hospitality and accommodation,’ AHA NSW said.

‘AHA NSW supports a balanced approach to migration that recognises the vital role international workers play in keeping our industry and our communities thriving.’

The campaign comes as One Nation leads calls for a dramatic reduction in migration, proposing cuts of 750,000 temporary visa holders over three years and pushing net overseas migration into negative territory.

The Coalition has also announced plans to tighten migration settings, promising to cut annual migration levels by about a third in its first year if elected, and reduce the number of temporary visa holders by 650,000 over four years.

Under its proposal, the Coalition would also halve the humanitarian intake to 10,000 places, and overhaul Labor’s changes to backpacker visas.

Deputy Liberal Leader Jane Hume on Wednesday said she had spoken with the AHA about the campaign and argued the Coalition’s policy would focus on attracting skilled workers, not cutting access to labour entirely. 

‘I’ve spoken to the AHA, and in fact we had an integration call with them just last week,’ she said.

‘They understand what we’re trying to do.’

Jane Hume (pictured) said that Australia would not have an ‘imported underclass’  of workers

‘The number of immigrants has been too high. We want to reduce the number, but more importantly, we want to shift the focus from unskilled migration to skilled migration.’

Hume said the Coalition deliberately left working holiday makers untouched and would reverse Labor’s proposed ballot system for backpackers because regional businesses depend on them.

‘We haven’t touched working holiday makers,’ she said.

‘In fact, we’re going to unwind the ballot process Labor announced because we think it will have a terrible effect on jobs in regional Australia.’

Asked how hotels, aged-care facilities and hospitality venues would cope without lower-skilled migrant workers, Hume rejected the idea Australia should rely on a permanent guest worker class.

‘What you’re effectively saying is that it’s okay to create a guest worker class,’ she said.

‘I don’t think that’s what Australians expect.’

‘When you go to Dubai and other places like that, you see a workforce that can resemble an imported underclass. That’s not who we are. It’s not Australian.’

Pauline Hanson (pictured), Labor and the Coalition have called for a cut to temporary visas 

Nationals leader Matt Canavan argued migration policy should be considered alongside broader economic reforms, blaming government spending for worsening labour shortages.

‘When you massively ramp up spending on programs like the NDIS, workers are drawn into government-funded roles they might otherwise perform in private businesses,’ he said.

‘So migration policy shouldn’t be considered in isolation.’

Labor is also seeking to lower migration levels, targeting net overseas migration of 245,000 by July 2027 and 225,000 annually thereafter.

The government also wants to reduce the number of working holiday makers eligible for second and third-year stays, while strengthening enforcement measures against visa overstayers.