State government pays for cancelled bookings at some south-west Victorian motels after hotspot cancellations

But many other businesses said the payments were of little use to them because they already had no bookings from areas with heightened stay-at-home orders.

The government is offering payments up to $225 a night for regional motels, caravan parks and short-term rentals such as Airbnbs that have had losses due to cancellations from certain Melbourne postcodes.

Port Campbell's Port O' Call Motel owner Jarrod Watene said up to four cancellations had come from guests in hotspot areas this week.

"It will definitely keep things ticking over this week," Mr Watene said.

"We are taking anything we can get at the moment. I think it was quite generous."

Mr Watene said he expected the payment would be a one-off with no further bookings from lockdown areas expected.

But Warrnambool's Best Western Olde Maritime Motor Inn owner Raj Patel this week had 14 cancellations, none from hotspot areas, costing the business $4350.

"People are scared," Mr Patel said. "Since the announcements there was quite a few cancellations."

Mr Patel said he would welcome wider reaching support such as extending JobKeeper for tourism businesses and eventually promoting Warrnambool and the region as a destination.

The Big4 Port Fairy Holiday Park's Kathleen Miller said the site had no cancelled bookings from hotspot areas.

"We have had a couple of cancellations from people getting tested and can't travel," Ms Miller said.

"They haven't been in the hotspots."

Warrnambool's Elm Tree Motel owner David Sargent said any wider support for accommodation providers should come later.

"Throwing a lot of money at it at this stage is wasted," he said.

"I think we need to see what comes out in the wash post September, post the fall off of JobKeeper."

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.