Magnetic Island’s staffing shortage crippling hospitality businesses

A staff shortage crippling hospitality businesses on Magnetic Island is forcing some hard-hit venues to cut back operating hours during the peak school holiday period.

A STAFF shortage crippling hospitality businesses on Magnetic Island is forcing some hard-hit venues to cut back operating hours during the peak school holiday period.

The chronic skills shortage has largely been attributed to the lack of affordable housing on the island, with two-bedroom rentals now fetching up to $450 a week.

Local real estate expert Theresa Spence from Compass Property said the island’s tight market of permanent rentals had completely “dwindled” in the past 18 months with a wave of homeowners now choosing to move back or sell up.

A lack of affordable long-term rentals options on Magnetic Island has been blamed for an ongoing staff shortage. Photo: William Leeroy

Maggie Lee’s Cafe owner Lee Holland said her business was still struggling “like hell” after the pandemic and now couldn’t bring on more staff to help her.

“I’m going to have to close the doors soon,” she said.

“I’m 59 years old and working seven days a week, full time just to keep the cafe open and trade isn’t doing well.”

Arcadia Village Hotel owner John Shepley said, like many hospitality businesses on the island, his pub has been under “immense pressure” to consistently stay open due to staff numbers.

He said he believed a “severe” lack of affordable long-term accommodation on the island and lower backpacker numbers were to blame for the island’s worker shortage.

Stuffed on Seafood owner George Clarke said they normally have 20-25 staff on deck and were down to just half of that until recently.

“Due to the lack of staff for about two months, we were down to opening five days a week instead of seven,” he said.

“We’ve just been able to get back to normal now that the vaccine mandate for workers has been relaxed, which is a relief because this is a busy time for us.”

School holidays are normally are a very busy time for businesses on the island. Picture: Melissa Findley

The Picnic Bay Hotel also had to pair back the operating times of their restaurant as they continue to look for a chef.

Island local Kate Nugent works at the Amaroo hotel and said they also spent months desperately looking to find a chef.

She said they were lucky to find one before the “hectic” school holiday period began, which they’re fully booked out for.

“It’s all tied in with the accommodation problems we have here; people are buying up and turning these rentals into holiday homes,” Ms Nugent said.

“We’ve lost a lot of families due to the dwindling rental market. It’s gotten very expensive. I’ve seen two-bedroom rentals up for $450 a week.”

Townsville Enterprise chief executive officer Claudia Brumme-Smith said they were working with the island community, business operators and visitors to the island to develop the Magnetic Island Tourism Masterplan.

“This will help us develop some long-term and sustainable solutions to these challenges,” she said.

Originally published as Magnetic Island’s staffing shortage crippling hospitality businesses