Snap COVID-19 lockdown hurt south-west tourism, support announcement can't help revenue lost

One Warrnambool operator says the state government's $143 million compensation package announced on Sunday for impacted businesses is only a "drop in the ocean".

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Deep Blue Hotel and Hot Springs marketing manager Lauren Orero said there was a significant number of bookings impacted across the venue's departments.

"We had 3500 Hot Springs Sanctuary customers impacted by the closure, of those approximately 50 per cent cancelled and we were able to rebook about 50 per cent for future dates," Ms Orero said.

"There were 400 overnight accommodation bookings impacted for the duration of the lockdown with only about 30 per cent rebooking due to hotel room availability for future dates.

"The day spa had around 65 appointments for treatments cancelled and only approximately 10 per cent of those were able to rebook.

"The revenue lost over those five days is never going to be made back. Even in instances where people were able to rebook, the overall impact on revenue is irreparable."

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The state government's $143 million package for businesses affected by the five-day snap lockdown plus an additional 50,000 vouchers of $200 would be made available for accommodation venues in both regional Victoria and Greater Melbourne.

"Year on year, Valentine's Day is a big weekend at the hotel. This year was the first opportunity for a valentines specific event in the new sanctuary and it was completely sold out before the closure," Ms Orero said.

"We were able to reschedule our Valentine's Day twilight session but only about 50 per cent of those original bookings were able to rebook.

"The grants that are available to us, while we are grateful, are a mere drop in the ocean in comparison to loss of revenue.

"While the business suffered financially our greatest concern is for the wellbeing and mental health of our staff, guests, suppliers and trade partners as the swiftness of the closure and reopening is a traumatic experience for all. The long term impacts will never be able to be quantified."

Warrnambool Best Western Olde Maritime Motel owner Raj Patel said the past weekend was busy but many bookings came last-minute.

"I was full on Saturday night and I had about 70 per cent capacity on Friday," he said. "Some people who were due to stay on Valentine's Day rebooked but only about five rooms.

"It's all last-minute bookings so they know they'll be guaranteed to get away. Thursday and Friday are my busiest days for bookings for the weekend and even corporate bookings are coming in last-minute."

Mr Patel said the additional vouchers made available by the state government would only be effective in off-peak periods.

"Some people are making forward bookings; the March long weekend is almost full for me and people are starting to book for Easter," he said.

"I'm happy with the incentives as long as they can be used in the off-peak season. We need them to help businesses during the quiet times.

"The first round was a waste as people were already travelling in January but they are a very good thing for off-peak times."

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