Hotels across Sydney and Melbourne are facing closure with the sector calling on the federal government for a $900 million relief package to help save over 300,000 jobs as the coronavirus epidemic shuts down tourism.
In a statement to be sent to the Morrison government,signed by industry chief executives,it says hotels are operating at 10 per cent and below in occupancy rates and need reforms to the Fair Work Act to protect jobs.
The federal government is expected to build on the assistance it announced in its initial stimulus package for the tourism and hotel sector but it will be much broader because of the threat to the overall economy.
"Our sectors have now collectively experienced the economic double impact of bushfires and Covid19. In March 2020 our sectors are beyond pain,we are facing extinction,"the statement to the government says.
"Current economic modelling shows that over the course of this year we will likely see over 300,000 job losses in the sector. For example,within the accommodation sector,hotels are facing occupancies of 10 per cent or less across the country,and will have no other recourse but to close.
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"The harsh reality is that there is no longer any demand and therefore no work for most of our industry."
The chief executive of Mulpha Australia,Greg Shaw,said his group had"not made any firm decision"but said with hotels across the sector looking at forward bookings,"it's a grim picture".
"It is hard to see,by looking at forward bookings of the next four-six weeks,how some hotels can keep operating,"he said.