LOOK AT THE AUSTRALIAN MODEL: Relief for UK tourism if earning threshold scrapped

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The UK Government is believed to be ready to toss out the proposed minimum earnings threshold for migrants, in order to help the tourism industry. Instead Prime Minister Boris Johnson is expected to introduce an Australian-style points-based immigration system linked to skills rather than salaries.

The intention is to significantly reduce unskilled immigration from January 2021, but the UK tourism industry has argued that introducing a minimum earnings threshold of £30,000 ($51,700) would create a staff shortage for businesses including hotels, which employ thousands of EU workers in roles that pay less than that.

According to a recent survey, a typical salary in the hospitality industry is only around £23,000 ($39,600). It also found that nearly a third of UK tourism businesses source more than half their workers from other countries in the EU. Furthermore, up to 80 percent of UK tour operators and destination management companies reported a shortage of home-grown talent with foreign language skills.

According to a report in the Express, a PM spokesperson said the Migration Advisory Committee has been asked ‘to do a separate piece of work on the £30,000 minimum earnings threshold’.

“I think it is worth pointing out that that obviously reflects the immigration system set out by the former government.

“The Prime Minister is looking at an Australian-style points-based system which is something slightly different.”

A government review is to be released next week.

“Removing the £30,000 earnings threshold for migrants post-Brexit shows that the Government has been listening to the concerns of the tourism industry,” said UKinbound CEO Joss Croft.

“This would be a positive step forward, however we still have a significant and growing skills shortage in the UK, caused not least by low levels of language skills, high employment and a lack of recognition amongst UK nationals of the career opportunities in tourism and hospitality.

“The Government therefore needs to ensure that language skills are recognised as a key skills shortage if it is to introduce an Australian-style immigration system post-Brexit. The Australian system also allows regional variations, which would help address business needs for the UK too.”