Struggling businesses face further setbacks as residents living in Melbourne’s hot spots cancel holiday bookings

Tourism businesses on Melbourne’s fringe say being wedged between the virus capital and regional Victoria is keeping customers away.

Karma Kinglake has had to cancel bookings from people living in Melbourne’s locked-down suburbs. Image/ Hamish Blair

Accommodation owners on Melbourne’s fringe have already started cancelling bookings from residents living in Melbourne’s COVID-19 hot spots as stage three restrictions came into effect overnight.

It comes as Victoria recorded 77 new cases of coronavirus today.

Police have also started to patrol entry points to Melbourne’s 10 COVID-19 hot-spot postcodes.

Residents living in the affected areas will only be allowed to leave their homes for four reasons: grocery shopping, care giving, daily exercise and school or work purposes.

Karma Kinglake owner Steve Neil told NCA NewsWire he had already received several cancellations from people living in the virus-riddled suburbs.

“The rolling back of lockdown is definitely another setback,” he said.

“These school holidays we’ve actually been pretty busy, there has been a demand for people and families to get out, but it is looking uncertain again after this period.”

Mr Neil said three customers from interstate had cancelled their bookings after Premier Daniel Andrews announced on Tuesday the suspension of all international flights landing into Melbourne until July 15.

“Even though they’re international flights, we have a lot of our customer base coming from interstate, but they’ve been scared off – everyone is being told to avoid Victoria, but it’s Melbourne that’s worse off, and Kinglake happens to be in the middle of Melbourne and regional Victoria.”

Victorian chief health officer Brett Sutton announces 77 new cases of coronavirus across the state on Thursday. Image/ Ian Currie

PENT-UP DEMAND

Regional tourism is thriving despite a new wave of lockdown laws enforced across Melbourne suburbs, according to Dayelsford Macedon Tourism CEO Steve Wroe.

But he warned any further lockdown on Melbourne’s metropolitan areas could result in less families visiting and the area’s economy drying up.

“The level of demand coming into our region since June 1 has been unprecedented,” Mr Rowe said.

“And the bookings are consistent until August. We are fortunate in our proximity to Melbourne and that the food and nature we offer is something Melburnians couldn’t wait to get after being in lockdown.

“Some individual businesses are affected by the latest lockdown and have had to cancel bookings, but as a whole Dayelsford and Macedon tourism is in a good position.”

GOVERNMENT ASSISTANCE

Regional Victorian accommodation businesses losing income as a result of this week’s lockdown on 36 Melbourne suburbs can seek support payments, the State Government announced this morning.

Cash from a $5 million fund will be available to businesses including motels, caravan parks and short-term rentals such as Airbnb.

But properties would need to prove losses due to the new restrictions. Payments of up to $225 per cancelled booked night will be paid, with conditions including full refunds are provided and no cancellation fees are levied.

The $5 million support package follows one-off $5000 payments that will be made to eligible businesses in Melbourne’s 10 hot-spot postcode areas.