The National Retail Association has called for immediate government assistance as the Australian hospitality industry faces up to an 80% drop in patronage due to the "coronavirus effect".
CEO Dominique Lamb told the Courier Mail “consumers should have no concerns” about eating out or shopping at retailers in or near suburbs with high densities of Asian Australians.
“Coronavirus and its impact on retail is just the latest challenge to face the sector, following a summer of devastating drought and bushfires, as well as a flat economy more generally," she said.
“The NRA is calling on all state governments to provide a temporary 12-month payroll tax ‘holiday’ to provide immediate financial relief to relevant businesses so that they can hire more staff and boost productivity.
“We’re advocating that businesses who have been directly impacted by the devastating bushfires and the outbreak of the coronavirus be exempt from any changes emanating from the Annual Wage Review."
China's lockdown and travel bans are expected to cost the Australian hospitality industry and the economy generally billions of dollars.
Linda Lau of Jimmy's Place in Dickson told the Canberra Times that in her 18 years of trade this had been the "worst time" and there had been a 30% decline in business.
Lau said the decline had been from Chinese customers and the travel ban had played a significant role.
Many of the regular customers at Jimmy's Place were students, who were stuck in China and unable to travel back to Australia.
In Sydney’s Chinatown, ABC News reports business is down between 60-80%, with many restaurant managers saying they can only stay afloat for a few more weeks.
“We may not be killed by the virus but instead killed by the business environment,” said Victor Tan, manager of New Chilli House, which is losing $10,000 a week.
Meanwhile, Ryde in the city’s north reports some businesses have seen a 50-80% drop in turnover.
The City of Ryde Council in Sydney is seeking to establish a $500,000 Small Business Hardship Fund to support businesses affected by coronavirus fears.
In Melbourne, many Chinatown businesses have reportedly been forced to shut down for several weeks and others are closing earlier.
Shark Fin House has closed its doors, possibly permanently, after more than 30 years.
Co-owner Gabriel Chan told The Age patronage has dropped by 80% since news of the coronavirus outbreak, prompting staff to be let go.
In Adelaide, that’s been the case for several restaurants already, meaning lay-offs and uncertain futures. It's a similar situation in Brisbane, with restaurant owners in Sunnybank and Fortitude Valley telling the Courier Mail they face losing their businesses as they struggle to pay wages and are forced to lay off staff or slash hours.
Lamb said the Australian hospitality industry had been exposed to the “coronavirus effect”, driving shopper numbers down 60%.
“There is really no risk of people contracting anything,” she said.
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