Victoria Tourism Industry Council advises dedicated program of support required to survive latest lockdown

According to the Victoria Tourism Industry Council (VTIC), today’s announcement that Victoria will move to a combination of Stage 3 and 4 restrictions will further devastate the state’s ailing tourism and event industry.

VTIC is calling on the Federal and Victorian Governments to establish a dedicated program of support to assist the tourism, events and hospitality sector to survive this latest lockdown –starting with maintaining JobKeeper at the $1500 per fortnight level beyond the end of September date for reduction of that support.

VTIC Chief Executive Felicia Mariani advised “while we completely respect the need for these drastic measures to get the virus under control, this six-week dramatic shutdown will gut our industry and dim the prospects of making it through to the other side of this situation, for many.

“VTIC has already noted the dire circumstances confronting the tourism, events and hospitality sector in Victoria, given that the state has been unable to reactivate at the same rate as other states in the country. On Friday, we called for Victoria to have special consideration from both State and Federal Governments to support the industry in weathering the impacts of these restrictions – and that needs to start with reviewing the decision to reduce the JobKeeper payment from end-September for Victorian operators.”

Last week, VTIC released a statement on the most recent ABS figures outlining the disproportionate impact on Victoria’s tourism and hospitality sector since mid-March when restrictions commenced. It is evident that Victoria has suffered the greatest decline in jobs performance in the country, seeing a 7.3% drop against a national decline of 5.6%. The Accommodation and Food Services sector has been hit the hardest with a 24.4% decline in jobs, against a national decrease of 18.1%.

Mariani adds “these numbers reaffirm what the Victorian tourism industry has seen and felt for months now, as extended lockdown sequencing has decimated any recovery opportunities the sector might have had.

“The industry also needs to see Business Support Grant Programs reinstated as a priority. The concessional loans that are available will simply not work as operators are not prepared to take on new debt when they can see no means of generating revenue to repay that debt anytime soon.

“At the current rate of progress, the reality is that Victorian operators will likely have to endure the best part of 12 months with little or no revenue. There is no business that could have ever planned to survive in such conditions.

“These unprecedented circumstances will require the full weight of collective Government support to address the clear and extenuating challenges, before one of Victoria’s and Australia’s largest and future facing industries is diminished further.”