New restrictions hit events and hospitality sector on long weekend

South West businesses are preparing for devastating financial losses this long weekend as events are cancelled following venue capacities being slashed as part of the Level 2 restrictions coming into effect on Thursday morning. As part of the Level 2 restrictions announced by Premier Mark McGowan, venues must follow a 2sqm rule and 150-person capacity limit with seated-only service, while stadium events are to be capped at 50 per cent capacity. Children in Year 3 and up will now have to wear masks at indoor public settings, including while at school, leading some WA parents to pull their children out of class as a temporary measure. But the full effects of the restrictions are being felt in the South West hospitality and events sectors, businesses that had been hoping for a long-weekend boom to recoup recent financial losses now feeling they could go to the wall within weeks. The Burlington Hotel publican Fleur Mayne said the popular late-night venue had already seen business drop by more than 50 per cent since the introduction of proof-of-vaccination requirements and mask rules. Low patron numbers forced the owners to close the venue’s live-music area, the Indi Bar, for the past two weekends in a row. “It feels like March 2020 again,” she said. “It’s hard enough to pay the bills when there’s no money coming in at all. “Things were just starting to pick up and now this has happened.” Businesses further south are also feeling the pinch. General manager at Busselton’s Shelter Brewing Company, Paul Maley, said his venue was forced to reduce its capacity by almost 80 per cent for the long weekend, a time when his and other hospitality businesses count on increased earnings to tide them over during the low season. “Hospitality businesses make the most of high value (periods) and hold on in low trading periods,” he said. “While we’re happy to carry the bag a bit, when 30,000 can go to the stadium and the casino gets the 4sqm rule, it does seem a bit unfair for Shelter and other breweries in the South West to only have a 150 person cap. “We understand the line needs to be drawn somewhere but I do think if you’ve got one rule for the casino and the stadium (that is) grossly unfair.” Another casualty of the new restrictions is the South West Craft Beer Festival planned for Busselton this weekend, organisers announcing the cancellation of the highly-anticipated outdoor event on their Instagram account hours after Mr McGowan’s announcement. On Wednesday, March 2, Mr McGowan announced a $72 million COVID-19 Business Assistance Package for small and medium businesses affected by the Level 2 restrictions. The new package includes a $66.8 million Small Business Hardship Grants Program, $2.8 million towards payroll tax relief for large hospitality businesses and $2.1 million for a COVID-19 Commercial Sporting Franchises Support Program. “My Government is committed to doing everything we can to help protect WA businesses, local jobs and the economy from the full brunt of COVID-19,” Mr McGowan said. “We know that WA is about to enter its rockiest month but under these Level 2 measures businesses can continue to operate safely, so I encourage everyone to do the right thing, follow the health advice and support local businesses. We will get through this, together.” State Opposition Leader Mia Davies said the Government’s “ad hoc” support programs were “a drop in the ocean” for small businesses. “When you make a decision that’s going to impact people’s lives and livelihoods, and you’ve had time to prepare for that knowing that they were going to be required to deal with the Omicron outbreak, there should have been a great deal more support on offer,” Ms Davies said. “There needed to be greater support for these businesses, organisations, and community organisers who are struggling with the constant change of rules, and the lack of clarity.” Shadow small business minister Steve Thomas backed up her comments, saying the Government’s response was not good enough. “We’ve had three compensation packages announced in three weeks because the situation keeps changing,” he said. “Business needs clarity and consistency to be able to survive. This is simply not good enough.” Ms Davies said when it came to the new mask-wearing requirements for children in Year 3 and above “the Department of Health has absolutely outsourced that responsibility to each school”. “They’re struggling to meet the requirements. It’s just another burden on a school community that’s not needed,” she said. “It seems remarkable that we’re scrambling from day to day to try and deal with new restrictions, new rules at a time where people need clarity and less confusion.” Australian Hotels Association WA chief executive Bradley Woods said the Level 2 restrictions would make trading unviable for some venues, while others would have to lay off staff. WA Events Industry Association chair Tim Kennedy said Level 2 restrictions would “wipe out” nearly the entire month of March, with nearly 170 events at risk of cancellation. Other restrictions coming into effect on Thursday include capping indoor private gatherings at 10, no spectators at community sport except parents or guardians, no visitors at hospitals, seated service only at venues, and a 50 per cent capacity limit for entertainment venues such as theatres or stadiums. The same 150-person limit will also apply to gyms and other fitness venues, museums, galleries and places of worship. The 50 per cent capacity limit will also apply to entertainment venues with forward facing seats such as theatres and cinemas. Hospital visits will also be banned except for spouses, parents, carers and birth partners — although exemptions are available on compassionate grounds.