HUNTER Valley tourism and business groups have cautiously welcomed the federal government's $17.6 billion stimulus package to ease the impact of the coronavirus but warned the devil will be in the detail in accessing funding.
The Morrison government's stimulus package came as the Hunter Valley Wine and Tourist Association will on Friday release updated figures on the "recent quadruple effect" of the drought, bushfires, smoke taint and COVID-19.
HVWTA says a conservative calculation based on member feedback puts the current economic loss to the Hunter Valley's visitor economy at $76 million between November and March this year. Between January and March, almost one fifth of respondents said their was down by more than 60 per cent.
"This converts conservatively to a loss of over $41m to the visitor economy for the three month period," it said.
Among the government's business stimulus were wage subsidies for apprentices and trainees, cash flow support of up to $25,000 for business through tax concessions, and incentives to invest in business equipment through an increase in the instant asset write-off threshold.
Newcastle publican Rolly de With, who owns Newcastle's Junction Hotel and is president of the Hunter branch of Australian Hotels Association, said the "comprehensive" package, in particular the $1.3 billion in wage subsidies, would deliver immediate support. "It will help ensure as many jobs as possible will be secured during this challenging time," he said, adding the instant asset write-off would help businesses to spend and reinvest.
Mr de With said the industry "had to look at the positives": the Hunter had great tourist assets and was a place "where people can come, stay, be safe and enjoy themselves."
Prominent Hunter wine figure Andrew Margan said the government's concession allowing businesses with a turnover of up to $500 million to write off purchases of up to $150,000 was "helpful" to a degree for those toying with investing in equipment.
Mr Margan said the Valley had seen dramatic falls in visitation during the bushfires and any incentives could only be helpful if accessible.
"[With] drought funding for regional business, you go through the paper work and it's virtually impossible to get through the bureaucratic nightmare to get access...You give up on it," he said.
"Clearly someone with common sense should be looking at it ... Everyone needs to get the flow on."
Hunter Culinary Association chairman Gus Maher said Hunter restaurateurs were feeling the pinch from bushfires and coronavirus. "If the [stimulus] helps them maintain apprentices then it is to be applauded," he said.
Mr Maher, who with wife Louise also runs private company Hunter Valley Events for corporate visitors, said that phone inquiries had "slowed to a small trickle" in the wake of the bushfires and coronavirus.
"Our hotel partners in the Valley seem to suffering tremendously from corporate clients who simply as a precaution are not travelling," he said.
"I don't think yet the general public is yet to cease travelling but we have evidence that corporate travel is being severely curtailed and the Valley is suffering tremendously."
Hunter Valley Wine and Tourist Association president Christina Tulloch said the wine industry had learnt from the bushfires that the devil would be in the detail in being able to access funds.
"My first reading is good news for business with the ability to write off [purchases] ... but given their financial situation, a lot of operators who haven't picked fruit this year won't be able to spend the money to get the benefit," she said.
She also questioned the government's opening of a $1 billion tourism fund to assist with identifying alternative export markets and promoting domestic tourism given "all areas of the world are struggling" and travel plans of many were affected.
She welcomed the wage subsidy provisions, saying it allowed casual staff to be paid despite the fact shifts were being cut back because of lower visitation.
"We will recover and when we do we will staff," she said.
The Hunter Business Chamber urged those who receive stimulus incentives or cash flow assistance to invest locally.
"To ensure the benefits of these payments and incentives flow to our local economies, I urge people to look to regional retailers and suppliers first when spending on household goods or investing in new business equipment," said Chamber CEO Bob Hawes.
"Even if you are at home and shopping on the internet, try to look for a local retailer before you go to one of the big online platforms."
Mr Hawes commended the inclusion of wage subsidies of up to $21,000 for employers of apprentices and trainees, saying the measure would help keep young people in work and ensure the pipeline of skilled workers required by the Hunter was not interrupted.
Cessnock City Council general manager Lotta Jackson welcomed the stimulus package and urged Hunter residents to buy local.
