Flooding dumps multi-million-dollar hit on Hobart retailers

HOBART’S mega-storm will cost millions in lost trade, insurance claims and clean-up expenses, as the city’s retailers look for a Mother’s Day rebound.

Flooding on the corner of Market Place and Collins St after the Hobart Rivulet broke its banks. Picture: SAM ROSEWARNE

HOBART’S mega-storm will cost millions in lost trade, insurance claims and clean-up expenses, as the city’s retailers look for a Mother’s Day rebound.

The CBD resembled a ghost town on Friday as residents heeded police and council warnings to stay away.

Two days out from Mother’s Day, several businesses couldn’t open because of water damage or staff trapped by road closures and damage to their own homes.

They included newly opened fashion giant H&M, grocer Salamanca Fresh and the Tasmanian Museum and Art Gallery.

Cat and Fiddle Arcade owner Gerard O’Brien said some stores, including H&M, had suffered water damage.

“It was a once-in-a-hundred years tough storm, it was a massive event,” Mr O’Brien said.

“It did challenge us overnight.”

Myer’s new store, which was hit by major flooding when the Hobart Rivulet was breached during construction, suffered only minor leaks.

Matt Hooper, a service agent at Avis in Market Place, surveys the damage to the vehicle fleet. Picture: SAM ROSEWARNE

Tasmanian Chamber of Commerce and Industry chief Michael Bailey, who was one of many to close his organisation’s office, said business was not yet considering the cost in lost trade.

“They’re just checking to make sure what they need to do to keep their staff safe,” he said.

“We haven’t had any businesses who are worried about the financial impact, it’s more the personal impact at this point that they’re worried about.”

But Mr Bailey said many Hobart retailers would be writing Friday off.

“Obviously there will be a time when the economy will be impacted by this,” he said.

“Retailers will have a very quiet day, if not completely absent from trade.”

Insurance claims with RACT had hit 300 by late on Friday, with around 500 expected in total.

The insurer, which has about 30 per cent of the Hobart market, was likely to pay out more than $1 million, chief executive Trent Sayers said.

Most were for water and tree damage, with inner-Hobart, Kingston and Clarence hardest hit.

“It’s going to be a multiple million-dollar event by the time you take account of commercial and domestic losses, particularly given some of the CBD issues and impacts,” Mr Sayers said.

“It is shaping up as being up there in terms of the significance of the events that we’ve seen.”

Businesses at the eastern end of the CBD took the brunt of flooding as the convict-built rivulet struggled to cope.

Staff at The Old Woolstore hotel banded together to help with the clean-up after the foyer, kitchen, restaurant, and bar was flooded.

Chief operating officer Alan Nelson said the carpet in the foyer would need to be ripped up.

“It was probably three to four inches deep at least through the foyer, and it just ran straight down through the restaurant and bar areas and through the kitchen,” Mr Nelson said.

Mr Nelson said no hotel guests were affected by the flooding, and was hopeful of resuming normal service on Saturday.

Hobart City Council staff will be called in over the weekend to work with the State Emergency Service on a clean-up expected to take several days.

Lord Mayor Ron Christie said it could cost up to $5 million.

Alderman Christie said it had been important to keep people out of the city for non-essential trips because of several road closures.

“People were listening and they were very proactive in avoiding the city or just staying home,” he said.

“Weather depending tomorrow, come in and start shopping.”

Mr O’Brien was confident retailers would make up some of the losses on a busy Mother’s Day eve.

“Would you go shopping today if you didn’t have to?” he said.

“They’ll be double tomorrow.”

Many Sandy Bay businesses will remain closed on Saturday with power outages continuing to affect the suburb.