Tourism expenditure in the Alpine region had decreased by 82 per cent by September last year, a university study has found.
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The report by Victoria University and the Victoria Tourism Industry Council outlined building staff accommodation and "value over volume" among strategies to support more sustainable tourism in Bright.
Lead researcher Joanne Pyke said "funding cheap airfares to take tourists to other states has had a negative impact on tourism recovery in Victoria".
"But possibly one of the most significant issues is the dramatic increase in business insurance cost in bushfire areas," she said.
Researches conducting a case study on Bright found business insurance increased by 100 to 400 per cent following the State of Emergency declared in the 2019-2020 fires.
Mount Hotham Resort Management chief executive Amber Gardner said the lack of bushfire insurance was the biggest threat to the state's Alpine tourism.
"My two biggest properties, one is worth $20 million, and the other one is worth $40 million, currently have no insurance," she said.
"Businesses either can't find an insurer to cover their business or can't afford the 400 per cent increased premiums."
Bright Brewery owner Scott Brandon said 80 per cent of income was lost but now "record" numbers were through the doors.
"We have tourists lining up and we desperately need to make up our lost income," he said.
"But a shortage of overseas working-holiday visitors; hospitality workers shifting to more secure jobs outside the sector, and; a lack of affordable accommodation, are all contributing to the difficulty in attracting staff."
At the time of report-writing, there were 47 families on the waiting list for rental housing in Bright.
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"It is recommended that a Victorian recovery roadmap be developed to address the current vulnerabilities in the tourism system and increase resilience to future crises," the report stated.
"Long-term problems relating to industry skills gaps and workforce capacity have been exacerbated by the pandemic and there is a need for a state-wide review of workforce capability and sustainability."
A Victoria-wide survey of 323 tourism operators found 45 per cent of respondents had mental health concerns, with there being a need "to provide appropriate mental health services in regional communities".