Warrnambool waiting on what will flow from Commonwealth Games legacy funding

Premier Daniel Andrews on Tuesday announced the state had abandoned hosting the 2026 games and $2 billion earmarked for staging the event would be redirected across sporting infrastructure, social housing and tourism in regional Victoria.

With the south-west region overlooked for hosting any events despite a major push for a scenic marathon along our spectacular coast, there was hope tourist dollars would flow to the region which was so hard hit by the pandemic.

Warrnambool had hoped to secure $2 million to upgrade sporting facilities so it could host athletes for training or practice matches and get a share of $30 million for tourism promotion as part of a joint regional cities bid. But that is now in doubt.

While other host cities like Ballarat, Geelong, Shepparton and Gippsland will still get their promised upgrades to sporting infrastructure, Warrnambool is left wondering if it will get a slice of new housing and tourism promises.

Member for Western Victoria Jacinta Ermacora said she was confident regional Victoria would capture the benefits of the Commonwealth Games without the costs of hosting the event.

Mr Andrews said when the Commonwealth Games needed a host city to step in at the last minute, the state was willing to help - but not at any price, and not without a big lasting benefit for regional Victoria.

Mr Andrews said the choice couldn't be clearer - $6 billion was just too much.

With the games now off the table, the government has promised $2 billion to ensure regional Victoria "still receives all the benefits that would have been facilitated by the games - and more".

A new $1 billion regional housing fund will deliver more than 1300 new homes - a mix of social and affordable housing. The government will work with councils, regional partnerships and communities to determine the right mix of stock and locations for each region.

A new $150 million regional tourism and events fund will ensure regions have "the best of everything" on offer with new events, new attractions and more accommodation.

A new $60 million regional community sport development fund will deliver new projects including aquatic centres, indoor stadiums, lighting upgrades and walking and cycling paths. There will also be $40 million for an all-abilities sport fund.

The government says more details about the $2 billion regional package would be revealed after consultation with sporting codes, councils, tourism bodies and the community.

Mayor Debbie Arnott said the goal of Regional Cities Victoria - which represents the 10 biggest councils in the state including Warrnambool - was for tourists to not just visit the hubs but come further.

"We were hoping to really have some bang with our buck with tourism. That's what we were aiming for here to get some training teams and some tourist dollars," she said.

"I feel real empathy for the athletes who have trained hard and setting themselves those targets. They have to start their preparation a long way out. That's been taken away from them."

Regional Cities Victoria chair Andrea Metcalf said the proposed statewide tourism package would not deliver the same benefits as broadcasting the best of regional Victoria into billions of loungerooms around the world.

The group is still calling for repairs and upgrades to sporting facilities in other regions outside the hubs.

The dumping of the games comes on top of the Victorian Government's decision to axe the Regional Jobs and Infrastructure Fund in the 2023-24 budget and, without it, councils no longer have the same access to funding co-contributions from the Federal Government, she said.

"This is a disappointing day for the 1.5 million people - a quarter of all Victorians - who call regional Victoria home and had excitedly welcomed the Commonwealth Games...," Cr Metcalf said.

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