A housing and accommodation shortage in the South West is putting pressure on tourism and hospitality providers in the region.

A lack of backpackers has left many jobs unfilled, while people moving to the region have increased traffic and business demand, with both problems becoming worse during peak tourism periods like Easter.

Busselton Mayor Grant Henley told 6PR’s Gareth Parker housing and employment issues have created the “perfect storm” for businesses.

“We like a lot of other places in WA are critically short of accommodation,” he said.

“We have little or no rental accommodation available to people and that has been exacerbated by the moratorium issues.”

He said cafes and restaurants are unable to operate to their full capacity because of a lack of staff.

“We are experiencing shortages that would usually be met by that transient working population and the backpackers,” Mr Henley said.

“A lot of them are putting their existing staff in cotton wool to make sure that they keep them.”

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(Photo: iStock by Getty Images.)