Victoria’s lockdown could send some in hospitality to the wall, but help is on its way

Victoria is in lockdown for a second time since the pandemic hit earlier this year.

Yesterday’s lockdown announcement has hit the hotel, tourism and pub sectors hard, as they come to terms with once again having to shut down their businesses.

The latest stay at home lock down imposed by Victorian Premier Daniel Andrews, will affect metropolitan Melbourne and will run for a minimum of six weeks. 

For regional Victorian businesses there is some light at the end of the tunnel.

Certain regional Victorian areas are unaffected by the lockdown, but those that were will see accommodation providers within these receive payments of up to $225 per cancelled night as part of the government’s support fund.

The AU$5 million support package is designed to limit the damage caused by this reinstated lockdown.

The ‘Tourism Accommodation Support Program’ fund will cover bookings made from 3pm on 30 June 2020 for travel from 1 July until 29 July.

It will be used to pay regional operators of hotels, motels, caravan parks and short-term rentals $225 per night in 46 regional and rural councils. However, this is only if full refunds are returned to the consumer with no cancellation fees.

The end date of 29 July will most likely  be extended to cover the duration of the lockdown.

Reimbursement applications can be made by registering at www.business.vic.gov.au. Funds will start being paid from 13 July.

Brendan McClements, CEO of Visit Victoria, said he was glad this fund has been made available for businesses which would have lost revenue. 

“We also hope many guests will choose to postpone their trip and rebook for a later date so they can make the most of our beautiful state, when it is safe to do so,” McClements said.

“These restrictions aren’t easy, but they are so important to our effort to slow the spread of coronavirus (COVID-19) and keep all Victorians safe.”

Regional accommodation providers have welcomed the introduction of the fund with Julian Clark, CEO of Lancemore Group saying it was a welcome initiative by the Andrew’s government.

“It won’t replace lost confidence nor freedom of movement but it is helpful and appreciated, even at a symbolic level,” Clark said.

“We need to understand the government’s new strategy for containment, opening up and also dealing with future outbreaks so we can have certainty in opening up our businesses.” 

Whilst David Mansfield, COO of Quest Apartment Hotels said, “It’s a very challenging time, and we hope that the Victorian government’s support package will provide the sector with some reprieve, while the state works hard to contain outbreaks.

“We fully appreciate the importance of the measures in place however do hope this lockdown stint will be shorter and we will be able to welcome back interstate guests to Quest’s Victorian properties in the not too distant future.”