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The Victorian Government has announced that the state will enter a new seven-day lockdown following an overnight rise in the number of COVID-19 cases.

The rising Coronavirus crisis follows 12 new cases emerging overnight, with more than 70 exposure sites, including the MCG and Marvel Stadium.

The latest announcement will further impact a range of leisure industry sectors which have already endured three previous lockdowns.

A new report from Victoria University and Victoria Tourism Industry Council (VTIC) shows that the impact of bushfires followed by the pandemic wiped $19.5 billion in visitor spending from the Victorian economy in 2020,

The report found that two-thirds of businesses lost between 75% and 100% of their income and that business insurance has risen by up to 400% in bushfire-affected areas, making it unaffordable for many.

Lead researcher Dr Joanne Pyke, Director of the School for the Visitor Economy at Victoria University, said the majority of those hit by the double crises were struggling.

Dr Pyke advised “the industry is depleted emotionally, financially and physically.

“At the same time, they need to quickly rebuild their businesses, often without the finances, support and workforce that they need to do so.”

Victoria Tourism Industry Council Chief Executive, Felicia Mariani said the state must lead the way in implementing strategies to address current vulnerabilities in the tourism system and increase resilience to future crises.

Mariani stated “our sector is not just scrambling to recover from the double crises of the past year; we’re also looking to build resilience and plan for a next inevitable crisis.

“The sector had already been facing a challenge in attracting enough skilled seasonal workers and Covid has amplified that problem by cutting off our overseas supply of backpackers, students and other workers. This shortage of staff resource is definitely hampering the sector’s ability and pace to recover.”

Dr Pyke said governments needed to implement targeted strategies to support industry in recovery, as many measures had not been helpful in the Victorian context, adding “funding cheap airfares to take tourists to other states has had a negative impact on tourism recovery in Victoria, which relies heavily on people travelling within the state to fill the overseas tourist shortfall.

“But possibly one of the most significant issues is the dramatic increase in business insurance cost in bushfire areas. Businesses can’t plan for the next crisis or build resilience if they are not assured of the ability to be able fund their recovery after a disaster.”

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