New restrictions pose challenges for large venues

Hospitality operators are calling for substantial support packages from the state government and level two COVID-19 restrictions to be removed as soon as possible to reduce job losses and save businesses. 

On Monday, Premier Mark McGowan announced a 150-person cap on hospitality venues from March 3, as part of level two restrictions.

The announcement took many in the industry by surprise, after last week Mr McGowan suggested the four-square metre rule would be implemented.

Shelter Brewing Co general manager Paul Maley said the move unfairly targeted large hospitality venues like his brewery, which had capacity for 700 people. 

“Unfortunately, providing some relief for the small cafes has absolutely put the boot into large venues like Shelter and made it very difficult,” Mr Maley told Business News.

“We will be reducing our capacity by almost 80 per cent and that seems a little unfair when the casino can operate with four-square metre rule [and] 30,000 people can attend a footy game.”

Mr Maley said Shelter had been planning to operate under the four-square metre rule which would mean they could serve 300 people. 

He said the new rules meant Shelter would probably have to stand down casual staff.

“We just spent 18 months trying to recruit staff and it has been quite difficult so we certainly don’t want to let any go that we don’t have to but there will have to be some tough decisions made,” he said.

He called on the state government to tweak the restrictions to allow larger venues to operate under the four-square metre rule, in line with the rules at Crown.

Three Pound Group general manager Tim McLernon, who runs venues several venues including The Camfield, said he was waiting to hear about the specifics of the restrictions before deciding how to operate his businesses over the next month.

Mr McLernon said it would be difficult to operate a large venue like The Camfield with the 150-person cap, but it would also be challenging to close it down for a few weeks. 

He said business had been declining since COVID-19 community cases were detected in late December, meaning the sector had already missed out on critical summer income and casual workers had lost shifts.

He hoped the state government would offer substantial financial support to help businesses survive the latest restrictions, but said the packages so far had not been helpful.

“The compensation packages that have been announced up until today, either I haven’t qualified for them or they have been so paltry that it’s not worth applying for,” Mr McLernon told Business News.

He said it was important restrictions were lifted as soon it was safe to do so.

Australian Hotels Association WA chief executive Bradley Woods agreed and said the industry could not afford for the latest restrictions to drag on, particularly larger venues. 

“We understand the government has to protect the community but we also want to ensure these restrictions are for a shorter period of time with as little impact on the hospitality industry and the tens of thousands of people who work with in it and their livelihoods that depend on it,” Mr Woods said.

He also called for a significant support package for the industry.

“We are going to be looking for far more substantial support than has been provided in the past over the next month is going to be one of the toughest periods for the hospitality industry and the state government, the WA government, needs to step up and support hospitality operators and their staff over this difficult time,” he said.

The new public health measures will also place further strain on the events industry.

From March 3, events and stadiums can have 50 per cent capacity, indoor events will have a 150-person cap and up to 500 people can go to outdoor events abiding by the two-square metre rule.

The Events Industry Association calculated about 169 events would not go ahead due to the implementation of level two restrictions.

Events Industry Association chair Tim Kennedy said everything from sporting events, concerts, community markets and expos had been wiped out.

“It is especially heartbreaking for events that had planned to go ahead this long weekend in the hope that they could generate some much-needed revenue for themselves and countless suppliers who were dependent on these events proceeding,” Mr Kennedy said.

He said the state government needed to start planning a way back to normality.

“Rather than compensating event businesses, this government needs to start creating an environment in which event businesses can build confidence that they can hold events,” he said.

“At some stage, this government needs to start stimulating event businesses, rather than elongating what has already been a soul crushing two years for many Western Australian businesses.”