$20 million of tourism trade stripped from Lorne after Black Christmas bushfire, report reveals

THE Christmas Day bushfire has likely stripped $20 million from Lorne’s economy in the peak holiday period, a report has revealed.

A fire truck drives on the fire damaged Great Ocean Road on Sunday, December 27, 2015, in Separation Creek, Victoria, Australia. Picture: Hamish Blair

THE Christmas Day bushfire has likely stripped $20 million from Lorne’s economy in the peak holiday period, a report has revealed.

The impact of the Wye River blaze leaves Easter as a key time for Great Ocean Road businesses desperate to recoup lost income.

Tourism bodies and political leaders, including Treasurer Tim Pallas, have estimated the losses across the region would top $50 million.

A Surf Coast Shire report details the financial fallout of the bushfire, which destroyed 118 homes, forced major events to be relocated or cancelled and kept tourists away.

Lorne was badly hit, with Surf Coast Shire economic develop­ment and tourism manager Matt Taylor stating revenue nosedived over the 10-day Christmas-New Year holiday period.

“During the peak time ... a daily economic loss of up to $2 million across the township could have been experienced,” Mr Taylor said in the report.

The long-burning bushfire led to accommodation vacancies being seen along the ­Torquay-Lorne coast over that period for the first time.

Providers were forced to drop prices to below winter season levels and scrap the minimum night stay policy to help fill rooms.

Mr Taylor said retail, accom­modation and supply chain businesses were all ­affected.

“The township evacuation on December 26 and the ­extreme fire threat to Lorne impacted negatively on the majority of Lorne traders, who saw a 10-30 per cent decrease in trading across a variety of sectors,” he said.

Lorne’s streets have been quiet compared to usual. Picture: Peter Ristevski

The continued threat of fires also led to major events.

The relocation of Falls Festival to Mt Duneed had a big impact, as the 16,000-strong crowd did not go to the coast.

Some Lorne traders reported reductions of 30 to 60 per cent on this alone, with accommodation sites seeing five-­figure losses.

The cancellation of New Year’s Eve fireworks in Torquay and Lorne also hampered trade, with fewer people ­attending the beaches and foreshore areas or outlets. Parts of Torquay were hit harder by a power outage on New Year’s Eve, causing “substantial losses” for retailers, especially stores at Surf City.

The fire destroyed 98 homes and holiday houses at Wye River and 18 at Sepa­ration Creek.

A view of the fire ravaged sidings of the Great Ocean Road. Picture: Jason Sammon

The blaze continued to burn in steep and inaccessible terrain for several weeks, posing problems for firefighters.

In Anglesea, retailers were hit hard between Christmas and New Year, with trade ­reduced by up to 70 per cent on key days.

However, some businesses saw trade returning to normal in early January.

It was better news in Win­chelsea, where completion of the Princes Highway works and a major exhibition combined to produce “the best summer in years”, according to the report.

The Dressmaker costume exhibition at Barwon Park Mansion attracted up to 1000 people daily, driving up takings by 50 per cent in the town.

Apollo Bay, which also suffered, is in Colac Otway Shire.

Originally published as $20 million of tourism trade stripped from Lorne after Black Christmas bushfire, report reveals