Tourism and visitor economy operators are warning that businesses may not be able to withstand the drastic fall in forward bookings, following devastating floods along the Murray River.
During the peak Christmas/New Year period the Murray region normally welcomes 1.87 million visitors, but a recent survey conducted by the Murray Regional Tourism Board has found more than half of the region’s tourism businesses have lost at least 40 per cent of their bookings for the peak season.
The survey is the first of three surveys aimed at determining the full impact of the floods on the tourism industry.
MRTB acting chief executive Will Flamsteed said almost 80 per cent of the 174 accommodation and tourism vendors had lost at least 40 per cent of their revenue over a three-week period.
Although the data collected only captured the loss of income as a result of the floods, he said it was important to note that the loss goes beyond the floods as this is the third season in a row that the tourism industry has been affected.
“Tourism businesses no longer have the financial buffers to withstand and recover from this disaster alone and one in five have been forced to stand down their staff,” Mr Flamsteed said.
“As many as two-thirds of tourism businesses in the region have only minor infrastructure damage or were not directly inundated by floodwaters, but they are still severely impacted by the lack of visitors and summer booking cancellations resulting in an estimated $128 million in lost income.”
The Victorian Government recently announced low interest loans of up to $250,000 for operators who have suffered significant damage to their assets or up to $100,000 for those who have had significant loss of income as a direct result of the flood crisis.
MRTB and the Victoria Tourism Industry Council have welcomed the activation of disaster recovery arrangements, however, there is still a long way to go.
The two bodies continue to advocate for grants of $75,000 for accommodation and tourism businesses to help cover loss of income and cancellations, increased limit of concessional loans of up to $500,000, funding incentives to go towards attracting high-profile concerts and events to increase visitation and financial support to be allocated to organisers of cancelled events.
MRTB has also proposed the launching of a $1 million marketing campaign across all platforms to encourage people to once again visit the region.
VTIC chief executive Felicia Mariani said operators along the Murray had been at the epicentre of devastation.
“If we want a thriving tourism industry along the Murray next Easter, we need to step up and support these businesses,” Ms Mariani said.
MRTB has just launched a new campaign called ‘Made in the Murray’ that is designed to encourage consumers to purchase products or experiences specific to the Murray region for their loved ones Christmas presents this year.
Mr Flamsteed said campaigns like this only assist in generating awareness that the Murray River region has more to offer than just fantastic river based activities.
But he said it’s not just about creating marketing campaigns and expecting people to visit the region.
“This is about enabling our industry to effectively recover, but also looking at the best opportunities to make our region more sustainable in the future,” Mr Flamsteed said.