Tourism Accommodation Australia NSW CEO Michael Johnson said hotels were sitting empty, with true occupancy rates in Sydney at less than two percent, while bills continue to roll in.
The nation’s peak tourism accommodation body said the extension of lockdowns in greater Sydney and restrictions in other parts of NSW will be a devastating blow for accommodation hotels barely managing to survive.
Tourism Accommodation Australia NSW CEO Michael Johnson said hotels were sitting empty, with true occupancy rates in Sydney at less than two percent, while bills continue to roll in.
He said staff were stood down with little support and many were beginning to flee the industry altogether.
“This is another blow to an already dire situation,” said Mr Johnson.
“Accommodation hotels are losing millions of dollars each week and have little support to keep paying the bills and to keep paying staff.
“Hotels are already facing a skills shortage without international students and working holiday makers and retaining our experienced staff is crucial if we are to mount any kind of recovery.”
Mr Johnson said the worst part of lockdowns is they destroy confidence.
“Lockdowns create uncertainty far beyond the actual restricted period,” he said.
“If people are not confident booking a trip and travelling to Sydney from regions, interstate and New Zealand we have long way to go to get out of this hole.
“Under the current lockdown most Greater Sydney hotels are closed or operating at less than two per cent occupancy, with most staff stood down,” he said.
“The ones that have managed to stay open have seen a 98 per cent drop in revenue compared to this time last month”.
Regional hotels and visitor economies are badly effected and have missed out on the busy July school holiday period altogether.
“TAA is still in communication with the state government for extra support for these hotels,” Mr Johnson said.
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