Regional Queensland businesses say changes to Australia's migration system, including introducing a ballot system for working holiday makers, will have devastating impacts.
Home Affairs Minister Tony Burke announced the changes yesterday.
Business owners are calling on the federal government to reconsider the changes.
Irish backpacker Fionnghuala Ni Fheinne feels uncertain about her future in Australia after a shake-up of Australia's working holiday visa program.
Among the changes, third-year working holiday visas would be limited to 5,000 backpackers each year.
Ms Ni Fheinne's shock was shared by others on working holiday visas in Cairns.
"It's a little bit scary," German backpacker Philip De Broux said.
Mr De Broux said the change may impact his hopes of a second year working in Australia.
Peter McLeay is the owner of a Cairns backpackers hostel and a local restaurant.
Other tourism businesses in Townsville shared the concerns.
Local resort chief executive Tim Richardson said it was hard to employ locals and working holiday makers filled a part of the community's work structure.
Tourism Tropical North Queensland chief executive Mark Olsen said he was concerned the visa changes could make Australia less appealing for working holiday makers in general.
Mr Olsen said the international workforce was a part of the region's skill base and limiting their numbers would have devastating impacts for the tourism economy.
David Groves, field manager at a tropical fruit farm north of Rockhampton, said focusing on backpackers would not solve the housing shortage.
Backpacker Fionnghuala Ni Fheinne is considering other avenues that may allow her to continue working in Australia.