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Tuesday, April 16, 2024

Hospitality sector bracing for sustained pain as restrictions ease

The ACT’s hospitality sector was already doing it tough long before lockdown was called on 12 August and will continue to operate under restrictions such as density limits for weeks after lockdown ends.

Australian Hotels Association ACT general manager, Anthony Brierley, told Canberra Daily the sector was “disappointed and frustrated” with the one person per four square metre rule in the government’s roadmap announcement earlier this week.

“By its own admission, the ACT Government is well aware that the four square metre rule is unviable for hospitality businesses,” he said. “After weeks of productive engagement, business owners are distraught and angry that their concerns have been disregarded by the ACT Government.”

Mr Brierley said the Doherty Institute Modelling supports the one person per two square metre rule once 80 per cent vaccination is reached – a number the ACT is on track to hit by mid-October.

“The ACT Government’s roadmap is twice as restrictive as the expert modelling by the Doherty Institute,” he said. “They are unnecessarily inflicting an additional six weeks of financial pain and mental anguish for hospitality businesses and employees.”

Chief Minister Andrew Barr conceded the four square metre rule is not viable for “some parts” of the sector, saying “that’s why economic supports will continue”.

“The hospitality industry doesn’t set the public health directions, nor does it set what the virus will do,” he told reporters.

“The effective choice was do we keep everything shut until December or do we allow some of the safer end of the hospitality industry to open up.

“Continuing to limit the activity in the highest risk areas that include nightclubs and the like allows other parts of the economy that had been under lockdown restrictions to gradually open up as well.”


READ MORE: Calls for ACT business support extension along lockdown ‘pathway’


Mr Barr said his government is continuing to negotiate a further package of business support for impacted businesses with Federal Treasurer Josh Frydenberg.

A range of hospitality industry licence and fee waiver schemes will continue once lockdown lifts.

“It is recognised that some industry sectors will require ongoing financial support beyond the time that the lockdown ends,” Mr Barr said.

Canberra Liberals Leader, Elizabeth Lee, said she had heard from small business owners curious to know how the financial support in place for businesses will be administered throughout October, specifically when lockdown officially ends on 15 October.

“Some businesses may technically be allowed to recommence operations but will be severely hampered by the capacity restrictions; so much so that for many businesses it will not be financially viable to open,” Ms Lee said.

“Ongoing restrictions place enormous pressure on businesses, in particular the hospitality sector.

“We need to ensure these businesses are given the support they need until the restrictions this government is placing on them are lifted sufficiently to enable them to recommence their operations in a financially viable way.”

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