Melbourne CBD: Data reveals impact of COVID on businesses

New data has revealed the “devastating” impact COVID has had on shops in the Melbourne CBD. It comes as council prepares to ask the state and federal government for help.

The Melbourne CBD is deserted as Victoria starts a snap five day lockdown to stop the spread of COVID-19. Picture: Paul Jeffers

The future of Melbourne businesses has been dealt another blow in lockdown as council prepares to ask the state and federal government for help before JobKeeper is cut off.

Despite Melbourne reopening over the summer, prior to Victoria’s lockdown this week, in November and December tourist spending was down 91 per cent compared to the same time in 2019.

A food delivery driver rides his bike along Melbourne's Chinatown as the state is under a five day lockdown to stop the spread of COVID-19. Picture: Luis Ascui

The number of empty offices and shops in Melbourne has also increased.

Lord Mayor Sally Capp said the lockdown is “devastating” for businesses doing it tough.

“The lockdown is devastating for our business community and we know that trading conditions are going to continue to be challenging for some time,” she said.

“Queen Vic Market will continue trading because it’s essential that people have access to fresh food and vegetables.

“The general merchandise traders will need to close again on the advice of health authorities, however cafes at the market will be open for takeaway.”

In a report presented to council, data collected found 29 per cent of shopfronts are shut including 15.28 per cent which were temporarily closed due to COVID.

Report to the Future Melbourne Committee for an economic recovery update.

Of the vacant shops cafes, restaurants and takeaway vendors make up 17.4 per cent followed by retail at 10.59 per cent.

Docklands has been the hardest hit area with only 53.1 per cent of shops occupied.

City of Melbourne Economic Development Director Andrew Wear said the city will look to the state and federal government to support the city’s future including the shortfall of 64,000 international students felt across the state.

“While the return of international students is critical for the city’s recovery, the Victorian and Federal governments have not yet identified a pathway for this to occur,” he said.

“The key levers impacting the city’s economic recovery sit with the Victorian and Federal governments.

“Melbourne’s economic recovery will largely depend on their direction, policy and funding.

“To underpin business confidence, it will be important that both the Victorian and Federal governments quickly outline their plans to support continued economic recovery beyond March.”

In March essential schemes including JobKeeper and the rent relief for commercial tenants will end.

The Future Melbourne Committee will meet tomorrow (16 FEB) and propose to ask the federal government for more support for businesses and will consider requesting Daniel Andrews assists with a further economic package for businesses.