Sydney’s once red hot hotel market has now become “the worst performing in Australia”, according to the Accommodation Association.
Sydney’s hotel revenue was down 67 per cent, while both Sydney and Melbourne were 91 per cent vacant after Easter on current bookings, adding further weight to calls that the Federal Government’s focus on regional tourism destinations needed to be expanded to the nation’s largest cities.
The Accommodation Association is one of many lobbying the government for an extension of a wage subsidy for the hotel sector beyond JobKeeper.
“The cost of redundancies at a time when revenue is failing to meet fixed costs will mean the closure of businesses for a number of owners who have exhausted their balance sheet reserves in 2020,” the association wrote in a letter to the federal government last week warning of significant job losses when JobKeeper ends.
The association is calling for an additional support package of $270 million to help the hotel sector through the continuing crisis.