Hospitality groups say the sector will be left footing a $1 million bill for the ACT's second Anzac Day public holiday.
Canberrans working on Sunday, April 25, will be allowed to take the day off if they choose and are entitled to public holidays rates if they don't.
Monday, April 26, is automatically a public holiday nationally because Anzac Day falls on Sunday this year.
But while good news for many, Australian Hotels Association ACT general manager Anthony Brierley said the hospitality industry would pay the price.
"I understand the desire to give Canberrans a public holiday for enduring the past 12 months," he said.
"But it's inequitable that the industry most decimated by COVID-19 will be stuck footing the bill.
"This decision will cost the hospitality industry up to $1 million. We needed that cash to help us recover from the pandemic, and now it's gone."
Minister for Industrial Relations and Workplace Safety Mick Gentleman said the decision was made in light of the pandemic, which prevented most Canberrans from commemorating the day last year.
"This year, the ACT government wants to ensure that Canberrans can pay their respects and anyone working on Anzac Day is eligible for public holiday penalty rates," he said.
Staff are entitled to 250 per cent of their usual wage on a public holiday and 175 per cent of that on a Sunday.
Canberra Business Chamber chief executive Graham Catt said several venues would potentially close that day because of the increased wages.
"I think the Canberra community will share our concern that this will have the biggest impact on those businesses most at risk, particularly small enterprises in tourism, accommodation, hospitality and retail," Mr Catt said.
"Many will only be able to manage the additional costs by not offering shifts to staff, creating a flow on effect to employees and the economy."
Hospitality groups say Chief Minister Andrew Barr told a tourism forum in 2019 there would not be a second Anzac Day public holiday in 2021.
Mr Gentleman, who declared the second holiday, said the decision was made as a result of the pandemic.
Clubs ACT president Kim Marshall said the decision would cost the industry trying make a comeback from the pandemic.
"It seems unreasonable that the ACT government is once more contributing to hindering the hospitality industry from getting back on its feet," she said.
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