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Peak industry body, the Accommodation Association, today welcomed the Victorian Government Commercial Tenancy Relief Scheme (CTRS), and encouraged all States and Territories to provide similar support.With hotels across Victoria continuing to mitigate the impact of successive lockdowns on both their business operations and staff, the measures provide some hope in the face of flatlining consumer confidence.

Announced by Small Business Minister Jaala Pulford and passed last night, the Commercial Tenancy Relief Act 2021 includes some key changes from the previous scheme which take into account the absence of Jobkeeper, and will provide support to small businesses with a turnover under $50 million that have suffered a decline of at least 30% in turnover.

The Scheme will run until 15 January 2022, and will apply retrospectively from 28 July 2021.

The Victorian Small Business Commission will receive funding to cover mediation costs between tenants and landlords from reintroducing the CTRS Scheme, which can be accessed for free by both parties.

Quotes attributable to Accommodation Association CEO Dean Long (who is available for interview)
“This new CTRS legislation can’t come soon enough for our struggling Melbourne hotel operators , which can’t begin to fully recover until the Sydney lockdown ends and no one knows when that will be yet.”

“We sincerely thank the Victorian Government and Minister Pulford for recognising the need to support businesses hanging on by a thread. Right now I know there are hotels and staff in Melbourne reliant on international and corporate travel out of Sydney that are effectively operating blindfolded, with no clear pathway forward.”

“That’s why it’s critical the CTRS runs into 2022, as it recognises the need to support businesses impacted by lockdowns into next year. Snap lockdowns do not include a snap recovery, it will takes month for hotels to rebuild.”

“While this legislation is a step in the right direction for our sector that needs to be mirrored across Australia, our hotels still desperately need a support measure which safeguards our staff and the businesses that employ them.”

“When borders reopen the accommodation sector will provide a key pillar our national tourism sector can use to rebuild, but governments must recognise our industry needs help to ensure we keep our staff engaged until then.”