Lodges, gyms, and health studios bear the brunt of the financial constraints


The lobby of the Brighton Savoy Hotel. Source: Supplied.

The easing of coronavirus restrictions across Victoria has left some industries, including tourism and gyms and gyms, bearing the brunt of the economic brunt of the government’s public health strategy.

From Thursday at midnight, restrictions in metropolitan Melbourne will be eased, allowing retail, hospitality and beauty services to reopen with some restrictions. However, indoor exercise facilities, including gyms and gyms, will remain closed for another week.

Metropolitan accommodations can accept bookings from single households or couples, and regional hotels can accept bookings from single households plus two adults.

The ongoing restrictions mean that tourism businesses in the Victoria area will not receive influx of customers on long weekends as Melbourne residents are banned from traveling more than 15 miles for no essential reason.

Jennifer Lee, director of the Brighton Savoy Hotel, tells SmartCompany that the fourth lockdown was a “deal changer” for her company.

“Companies cannot work with constant interruptions without receiving financial compensation. This lockdown is a bit of a deal changer, ”says Lee.

The Brighton Savoy Hotel is a 60 room event venue, four function rooms, two boardrooms and a restaurant.

While applying for assistance from the state government, Lee said the grants available in no way match the overall loss in sales caused by the restrictions.

“I have more than $ 20,000 a week on a weekly payroll without being able to bargain,” she says.

“We’re losing about $ 120,000 a week in sales.”

Victoria entered her fourth lockdown on May 27, sparking calls for continued support for companies that no longer have JobKeeper’s safety net.

While the Victorian government has announced support for businesses directly affected by the restrictions, including the hospitality, arts and tourism industries, business groups say that is not enough.

The Victorian Chamber of Commerce and Industry supports easing restrictions but said it was not “the snapback we were hoping for”.

Paul Guerra, chairman of the board of directors of the Beginning Chamber, said in a statement that not every company in the state will be able to operate starting tomorrow, and some will “continue to lose money every day until restrictions are further relaxed.”

Lee, who runs the 4-star hotel her father took over in 1960, says the state and federal government can offer more support to businesses.

“Reintroducing JobKeeper or a similar program would help,” she says.

Additionally, Lee says, wage tax breaks, property tax breaks, and other federal tax exemptions would help her business survive.

“The majority of our key workers have been with us for 10, 12 or even 25 years. We’re more than a company, we’re more than an employer, we’re actually part of the community, ”she says.