Darwin Hospitality Businesses Report Lower Bookings and Higher Costs

Hospitality and tourism operators in Darwin are reporting fewer bookings and higher operating costs as the peak season begins. A popular restaurant closed its doors two weeks ago, and business owners have asked the Northern Territory government to consider reintroducing support programs used during the COVID-19 period.

Two weeks ago, Flora's Temper in the suburb of Nightcliff announced it would close. The venue shut permanently the next day. Owner Nicho Peters said the decision was his responsibility. Hospitality NT chief executive Cathy Simmonds said the restaurant had waited six months for an outdoor dining permit from the City of Darwin.

She questioned why such approvals remain difficult to obtain.

Michelle Elliott, who has operated the Spirit of Darwin sunset cruise with her husband for 16 years, said fuel price increases and fewer reservations have forced the business to reduce sailings from four or five nights a week to two or three. She said the current conditions are the most difficult since the pandemic.

Elliott called for the return of tourism vouchers that were available during COVID-19, stating the program encouraged local residents to visit nearby businesses. Peters said grants currently favor bookable tourism experiences and do not assist venues that serve food and drinks to visitors already in town.

He said additional support would be welcomed by smaller operators.

Tourism and Hospitality stated that fuel pressures and economic conditions are affecting the sector and that bookings from May to August are lower than the same period last year. The department said it has increased marketing partnerships with airlines and launched new campaigns.

The department also said tourism vouchers do not necessarily increase interstate visitation or direct spending to businesses facing the greatest challenges. The City of Darwin has been contacted for comment on permit processes.