With NZ cost of living if you factor in higher labor costs it will make everything even more expensive relative to income. Cheap temporary labor is great not only for the companies, it's good for the consumers too, bringing prices down and availability up. The backpacker is in and out, dosen't need medical care, social security and other services.

Many of the jobs that are low paid backpacker frendly, the locals aren't to keen to do. If you don't have them there, many busineses will close down, because margins can't support 100% local staff.