Omicron is keeping people at home, with Melbourne CBD hardest hit

Around three quarters of events planned for Victoria during January and February have been cancelled or postponed as cautious Melburnians are under self-imposed isolation.

The state’s peak business group says Melbourne is experiencing an “unofficial lockdown” as cautious residents increasingly shun restaurants, cafes and retail outlets while business owners struggle to juggle isolating staff.

Around three quarters of events planned for Victoria during January and February have been cancelled or postponed, according to a bleak new industry survey.

The survey by events industry lobby group Save Victorian Events also found another 16 per cent of planned happenings are at risk of being cancelled in a new major blow for the hard hit sector.

The average income for businesses within the events industry is expected to be 68 per cent lower for the first three months of 2022 compared to the same period pre-Covid, dashing hopes that the new year would give the sector a reprieve.

Industry income has been down by about 80 per cent for the majority of the pandemic with around 85 per cent of the sector’s income coming from business events such as conferences, seminars and expos.

Royal Arcade in Melbourne CBD remains quiet as Victoria is only days away from Covid restrictions easing. Picture: David Geraghty

Save Victorian Events founder Simon Thewlis said business events were an extension of the workplace and would not pick up while work from home guidance remained in place.

“While there is a government mandate in place to work from home, be it a formal restriction or a strong health recommendation, the majority of business events will not happen,” Mr Thewlis said.

“Some events are still happening - which is great - and they absolutely need to be supported as we know events can be run safely.”

Mr Thewlis said the industry needed a fresh round of government assistance to get it through the ongoing business drought.

“If an industry cannot operate due to government mandate it is fair and reasonable that there should be financial support,” he said.

Mr Thewlis said while it was fantastic to see the Australian Open running, major events only account for about 5 per cent of overall industry revenues.

The Omicron outbreak has seen visits to retail and recreation venues – restaurants, cafes, shopping centres, museums, libraries and cinemas – drop by 25 per cent across Melbourne in the opening weeks of the year.

Trips to parks are down 20 per cent, movement through public transport hubs down by close to 70 per cent while travel to workplaces is down 40 per cent, Google mobility data shows.

Visits to Melbourne CBD outlets dropped 60 per cent as Omicron cases surged. Picture: Wayne Taylor

The city centre is again faring the worst, with retail visits down a hefty 61 per cent, park visits down 51 per cent and travel to workplaces down 51 per cent.

The drop is not as severe as the 80 per cent plunge in CBD retail visits posted during the city’s sixth and last lockdown, but comes amid a far looser approach to restrictions.

Victorian Chamber of Commerce and Industry acting chief executive Scott Veenker said anxiety over Omicron and staffing issues is taking a fresh toll on the city’s economy.

“While not officially locked down, current conditions have led to an unofficial lockdown,” Mr Veenker said.

“We are seeing low patronage numbers across the hospitality and events sectors and severe staff shortages across retail, personal services, manufacturing and deliveries.

Melbourne is not in lockdown, but Omicron is keeping shoppers at home. Picture: David Crosling

“Combined with positive case numbers and close contact isolation requirements, these factors have resulted in the forced closure of businesses or the significant scaling back of operations.”

The latest Google data runs until January 13 when the state recorded more than 37,000 new cases with 953 hospitalised.

The drop off in mobility has built over 2022, in line with concern over Omicron.

Visits to Melbourne retail and recreation venues were down 12 per cent at January 3, a figure that had grown to 22 per cent by January 10.

New density restrictions for hospitality venues came into force on January 7, while mask mandates for office workers continues to see them work remotely.

The Omicron wave is expected to peak in Victoria by the end of the month, and one health expert encouraged older Victorians to embark on a self-imposed lockdown in coming weeks.

Visits to retail outlets across Melbourne dropped by as much as 50 per cent during the last six-week lockdown that closed in-store shopping at non-essential outlets during August to October, Google data for that period shows.

The current drop in retail – 25 per cent – comes despite outlets remaining open to in store shopping.

Park visits dropped by as much as 50 per cent during the last lockdown – they are currently down 20 per cent – as it included the controversial playground closure.

Travel to workplaces fell by around 40 per cent while public transport usage was down 75 per cent, on par with current conditions.