SA government announces $40m rescue package for hospitality and tourism businesses

Tourism, hospitality and fitness business owners have welcomed a $40m rescue package – but say tough density restrictions are the real problem.

A new $40m Covid support package for SA’s hospitality, tourism and fitness sectors has been welcomed by industry groups but business owners have warned it won’t be enough if tough density restrictions remain in place well into the new year.

Peak lobby groups, including the Australian Hotels Association SA, Business SA and the SA Tourism Council, said the relief money, which offers businesses cash grants of up to $22,000, liquor licence waivers and payroll tax deferrals, would help operators battling with the reintroduction of strict venue capacity limits.

But concerns remain among business owners that the financial support won’t last long if restrictions – which limit hospitality venues to just 1 person per 4 sqm indoors and 1 person per 2 sqm outdoors, and gymnasiums and fitness centres to 1 person per 7 sqm – aren’t lifted soon.

Simone Douglas, from Hospo Owners Collective, said the cash grants were “chump change” for hospitality operators struggling to make ends meet.

Peel St in Adelaide. Picture: Matt Loxton

“The reality is for a large percentage of hospitality businesses who will narrowly miss out on the $22,000 as well as those that qualify for the $6000-$8000 … it’s chump change at best mitigating some of the losses incurred in the last two weeks, never mind helping them to survive into the future,” she said.

Simon Kardachi, owner of top Adelaide restaurants including Fugazzi Bar and Dining Room, Shobosho and Osteria Oggi, said he was grateful for the grants but his businesses were “still hamstrung” at 25 per cent capacity.

“This isn’t sustainable even with the grants as thankful as we are for them,” he said.

“In perspective the grants at the highest level equate to $2500 a week over the December and January periods – but who’s to look a gift horse in the mouth?”

Restaurateur Simon Kardachi, left, with Laura and Max Sharrad at Fugazzi restaurant in Leigh Street, which has closed due to crippling Covid regulations. Picture: Brenton Edwards

Australian Hotels Association SA chief executive Ian Horne said employees need as much support as business operators while restrictions remained in place.

“These support packages assist venues … but the provide no tangible support for the thousands of South Australians stood down or had hours curtailed due to these harsh restrictions,” he said.

“The greatest contribution the Government can make to the viability of venues and preservations of jobs is to remove these restrictions as soon as possible.”

Business SA chair Nikki Govan said the relief money was pleasing but urged the government to consider scaling payments based on turnover and number of employees.

“Business SA welcomes the Treasurer’s flexibility to consider more support should these restrictions continue. We also seek clarification on the potential to defer payroll tax for all South Australian businesses who can demonstrate that the Omicron restrictions have impacted them,” she said.

Initial grants of up to $11,000 will be paid to businesses from next Tuesday and the second after their application is assessed.

South Australian Treasurer Rob Lucas. (Photo by Kelly Barnes/Getty Images)

Treasurer Rob Lucas said up to four thousand SA businesses would qualify for the automatic payments.

“We said all along we have two priorities: save as many lives as we can, and we’ve done remarkably well there, even with the sad circumstances of the last two days, and to save as many jobs and businesses as we can,” he said.

“We can’t save them all but we’ve done remarkably well as our economic growth figures show.”

The government’s support package includes:

– GRANTS of up to $22,000 for eligible tourism and hospitality businesses and gyms, which includes automatic payments of up to $11,000 for businesses that previously received the Additional Covid Business Support grant.

– BUSINESSES can also get another grant of up to $11,000 by applying, if their turnover dropped by 30 per cent in the two weeks starting December 27.

– ELIGIBLE businesses other than hospitality, tourism and gyms can apply for an $8000 grant while affected major events that were cancelled or postponed can receive grants of up to $100,000.

– PAYROLL tax deferral for tourism, hospitality and gyms affected by the trading restrictions upon application to RevenueSA and some liquor licence holders can have the remaining half of fees waived.

Premier Steven Marshall called it a “pretty expensive package”, as it was revealed at a press conference this afternoon.

“Omicron is a game changer, but by working together we will rise to the challenge and get through this,” Mr Marshall said.

“As the virus changes, our response must also change, and that is why we are announcing this significant financial support package for hospitality and tourism businesses and gyms impacted by density restrictions.