Inquiry Into the Impact of the COVID‑19 Pandemic on the Tourism and Events Sectors
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PARLIAMENT OF VICTORIA LEGISLATIVE COUNCIL Economy and Infrastructure Committee Inquiry into the impact of the COVID‑19 pandemic on the tourism and events sectors Parliament of Victoria Legislative Council Economy and Infrastructure Committee Ordered to be published VICTORIAN GOVERNMENT PRINTER August 2021 PP No 254, Session 2018–2021 ISBN 978 1 922425 35 5 (print version), 978 1 922425 36 2 (PDF version) Committee membership CHAIR DEPUTY CHAIR Mr Enver Erdogan Mr Bernie Finn Mr Rodney Barton Southern Metropolitan Western Metropolitan Eastern Metropolitan Mr Mark Gepp Mrs Bev McArthur Mr Tim Quilty Mr Lee Tarlamis OAM Northern Victoria Western Victoria Northern Victoria South Eastern Metropolitan Participating members Dr Matthew Bach, Eastern Metropolitan Ms Melina Bath, Eastern Victoria Dr Catherine Cumming, Western Metropolitan Hon David Davis, Southern Metropolitan—substitute Member for Mrs McArthur for this Inquiry Mr David Limbrick, South Eastern Metropolitan Hon Wendy Lovell, Northern Victoria—substitute Member for Mr Finn for this Inquiry Mr Andy Meddick, Western Victoria Mr Craig Ondarchie, Northern Metropolitan Hon Gordon Rich-Phillips, South Eastern Metropolitan Ms Sheena Watt, Northern Metropolitan ii Legislative Council Economy and Infrastructure Committee About the Committee Functions The Legislative Council Economy and Infrastructure Committee’s functions are to inquire into and report on any proposal, matter or thing concerned with agriculture, commerce, infrastructure, industry, major projects, public sector finances, transport and education. As a Standing Committee, it may inquire into, hold public hearings, consider and report on any Bills or draft Bills, annual reports, estimates of expenditure or other documents laid before the Legislative Council in accordance with an Act, provided these are relevant to its functions. Secretariat Patrick O’Brien, Committee Manager Alice Petrie, Inquiry Officer Katie Helme, Research Assistant (to June 2021) Holly Mclean, Research Assistant Christianne Andonovski, Chamber and Committee Officer (to June 2021) Cat Smith, Administrative Officer Contact details Address Legislative Council Economy and Infrastructure Committee Parliament of Victoria Spring Street EAST MELBOURNE VIC 3002 Phone 61 3 8682 2869 Email [email protected] Web https://www.parliament.vic.gov.au/eic-lc This report is available on the Committee’s website. Inquiry into the impact of the COVID‑19 pandemic on the tourism and events sectors iii Contents Preliminaries Committee membership ii About the Committee iii Terms of reference viii Chair’s foreword ix Executive summary xi Findings and recommendations xvii What happens next? xxvii 1 Introduction 1 1.1 The tourism and events sectors 1 1.2 Inquiry process 2 1.3 Outline of the report 3 2 The COVID‑19 pandemic: government responses and responsibilities 5 2.1 Timeline of key events for the COVID‑19 pandemic response 5 2.2 Government responses 6 2.2.1 Border closures and restrictions 7 2.2.2 Hotel quarantine 9 2.2.3 Lockdowns 10 2.2.4 Density quotients and capacity limits 13 2.3 Commonwealth governance 14 2.3.1 COVID-19 response decision-making 14 2.3.2 Pandemic response plans 17 2.4 Victorian governance 18 2.4.1 COVID-19 response decision-making 18 2.4.2 Pandemic response plans 20 2.5 Government support packages 22 2.5.1 ANZSIC classification 22 2.5.2 Commonwealth initiatives 22 2.5.3 Victoria 25 3 The impacts of the COVID‑19 pandemic on Victoria’s tourism sector 31 3.1 The tourism sector in Victoria 31 3.1.1 Value and trends 32 3.1.2 Governance 33 Inquiry into the impact of the COVID‑19 pandemic on the tourism and events sectors v Contents 3.2 Impacts of the COVID‑19 pandemic 35 3.2.1 Economic and financial impacts 35 3.2.2 Workforce retention and skills shortages 40 3.2.3 Accommodation 43 3.2.4 Operator and public confidence 44 3.2.5 Business innovation and adaptability 46 3.2.6 Mental health 48 3.2.7 Tourism infrastructure 49 3.3 Victoria’s tourism regions 51 3.3.1 Melbourne 53 3.3.2 Great Ocean Road 54 3.3.3 Gippsland 55 3.3.4 High Country 56 3.3.5 Murray 58 4 Government support provided to Victoria’s tourism sector 59 4.1 Victoria 59 4.1.1 Visitor Economy Recovery and Reform Plan 60 4.1.2 Business Support Fund 62 4.1.3 Outdoor Eating and Entertainment Package 64 4.1.4 Other business support 65 4.1.5 Regional Tourism Investment Fund 66 4.1.6 Regional and Melbourne Travel Voucher Schemes 67 4.1.7 Visit Victoria initiatives 71 4.1.8 Working for Victoria Fund 73 4.1.9 Region-specific assistance 74 4.1.10 Mental health support 75 4.2 Commonwealth 77 4.2.1 JobKeeper Payment 77 4.2.2 Tourism Aviation Network Support Program 78 5 The impacts of the COVID‑19 pandemic on Victoria’s events sector 81 5.1 The events sector in Victoria 81 5.1.1 Composition of the sector 84 5.1.2 Governance 86 5.1.3 Value of the events sector 89 5.2 Impacts of the COVID‑19 pandemic 91 5.2.1 Economic impacts 93 5.2.2 Operator and public confidence 97 5.2.3 Insurance coverage 101 5.2.4 Loss of industry status and workforce challenges 103 vi Legislative Council Economy and Infrastructure Committee Contents 5.2.5 Mental health 106 5.2.6 Regional areas 108 5.2.7 Events in Melbourne 110 6 Victoria’s events sector: ongoing restrictions and government support 111 6.1 Ongoing restrictions on events 111 6.1.1 COVID-19 Public Events Framework 112 6.1.2 Approvals process 116 6.1.3 Information and assistance 120 6.1.4 The need to revise events guidance 123 6.1.5 Density quotients and venue capacity 128 6.1.6 Additional financial costs 132 6.2 Government support 132 6.2.1 Victoria 133 6.2.2 Commonwealth 140 7 Future support measures for the tourism and events sectors 143 7.1 Ongoing challenges for the tourism and events sectors 143 7.2 Restoring confidence 144 7.2.1 Suppression strategy 144 7.2.2 Vaccination thresholds and public guidance 147 7.3 Tourism 148 7.3.1 Governance 148 7.3.2 Skills shortages 150 7.4 Events 151 7.4.1 Governance 152 7.4.2 Insurance 159 7.4.3 Events vouchers 170 7.4.4 Workforce challenges 172 Appendices A About the Inquiry 175 B Government support measures 183 Extracts of proceedings 199 Minority report 203 Inquiry into the impact of the COVID‑19 pandemic on the tourism and events sectors vii Terms of reference Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors On 18 February 2021 the Legislative Council agreed to the following motion: That this House requires the Economy and Infrastructure Committee to inquire into, hold public hearings in Melbourne and regional Victoria to identify key issues and areas of concern, and report by 30 June 2021, on the impact of the COVID-19 pandemic on the tourism and events sectors and provide recommendations for State Government support measures that will restore the tourism and events sectors to their critical role in the Victorian economy and restore lost jobs. viii Legislative Council Economy and Infrastructure Committee Chair’s foreword It is now more than 18 months since the first COVID-19 case was recorded in Australia. We have all been affected in some way by the global pandemic, and the unprecedented challenges it has brought. Victoria’s tourism and events sectors are among the industries most affected by the impact of this virus. The tourism industry relies on people being able to move about freely, and the events sector cannot exist without people being able to come together safely. Both of these have been difficult and at times impossible during the pandemic. The Government-led effort to keep the public safe during 2020 meant making significant sacrifices, particularly for those in the tourism and events sectors. Fortunately, the tourism sector in Victoria began seeing the green shoots of recovery at the beginning of 2021. Although it must be noted that this recovery is not uniform across the whole state, with Melbourne still facing significant challenges due to the ongoing effect of border closures and lockdowns. Unfortunately, the events sector is taking longer to recover. Victoria has long been the events capital of Australia. A remarkable range of skilled operators and technicians help our economy stay strong and bring joy, not just to Victorians but, as the Committee learnt, to people across the world. Just how important events are to us can be measured by how much we have missed them in our lives. It is a sector we are rightfully proud of and one that deserves our support. With that support, I am convinced that our tourism and events sectors will bounce back strongly from this global pandemic and thrive once more. I know that this has been a very difficult Inquiry for many people to participate in. On behalf of the Committee, I would like to thank everyone who shared their experiences with us, including the ongoing uncertainty many face. Your courage in speaking up was greatly appreciated by every member of the Committee. We also heard inspirational stories of hope from both the tourism and events sectors, businesses and workers who are determined to keep going. This determination makes me optimistic that the many talented people we are lucky enough to have here in Victoria, working in collaboration with the Government and a public eager to offer its support, will see our State recover strongly from the COVID-19 pandemic.