Accor Warns of Hotel Closures Without “Urgent Support”

Described as Australia’s “most powerful hotel boss”, Accor Pacific CEO Simon McGrath has warned that hotels will be forced to close in the face of plummeting occupancy levels.

Speaking to The Australian, he said hotels across Australia were drawing up plans to “hibernate and close” as a consequence of inadequate government support.

He told the newspaper that “business owners are at breaking point and there will be closures. Many don’t have the means to keep going past September.”

He urged State and Federal governments to put aside their “bickering” over border closures, which impacted tourism more than any other sector, and to set a “set an opening date to bring an end to the current uncertainty”.

“Having the courage to commit to a date will give people confidence and unite our country behind a common goal.”

The article reported: “Mr McGrath called on Canberra to urgently reinstate support packages such as JobKeeper, saying tourism was in a worse state than last year, when it commenced the funding program”.

Journalist Lisa Allen also cited Jerry Schwartz, “one of the country’s largest private hotel owners” who has shut the Rydges Sydney Central, which employs 400 staff.

“We are dependent on government support to keep surviving. It really is a serious situation,” he was quoted as saying.

AHA|SA PRESIDENT BACKS CALLS

AHA|SA President, David Basheer, called on the Government to revert to the original criteria of financial assistance for venues negatively affected by COVID-19- inspired Public Health Orders.

“To offer assistance solely based upon what restrictions exist in your locality has heavily discriminated against some tourism and hospitality outlets,” he said.

“CBD accommodation venues have operated at minimal occupancy for weeks due to the heavy border closures, with little upside forthcoming. And of course, to get any occupancy, their rates have taken a pounding.

“Every week, they are getting left further behind as our pre-COVID-19, $8.1 billion visitor economy shrinks.

“These venues, some of which are small and family operated, should not be expected to exhaust all their working capital or go deeper into debt simply to satisfy the health needs dictated to them.”