A survey released today by the Hunter Valley Wine and Tourism Association reveals the Hunter Valley has suffered a staggering $42 million loss in tourism revenue over the last three months.
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"On average, the Hunter Valley economy is losing close to $15 million a month in tourism revenue," said Christina Tulloch, President of the Hunter Valley Wine and Tourism Association (HVWTA) .
"This is an alarming trend, and it's forecast to continue into June.
"We're the second biggest tourism destination in NSW outside of Sydney, so the issues in the Hunter will be felt at a national level."
The survey reveals a more worrying picture for the Hunter Valley than previously understood - it faces the triple threats of fire, drought and now smoke taint, which has resulted in significant crop losses.
"Business and tourism operators in the Hunter were already under financial pressure associated with a protracted drought, and this survey reveals a steep 25 per cent reduction in visitation numbers as a result of the bushfires," Ms Tulloch said.
"They are hurting, and the Hunter Valley economy is suffering alongside them."
Such is the level of stress in the valley that Member for Hunter, Joel Fitzgibbon has been pushing the Federal Government to include smoke-taint as a part of bushfire damage.
A significant part of the Hunter's 2020 harvest will not be made into wine with other NSW growing areas such as Cowra and Mudgee facing similar news.
Major Hunter wineries such as Tyrrell's, Mount Pleasant and Brokenwood have overwhelmingly reduced vintages - in the case of Mount Pleasant, they have abandoned the vintage completely and won't produce a drop.
Others weren't as badly affected, while other like Usher Tinkler and Mike De Iuliis for example, range from delighted to optimistic.
"The Government has announced a $75,000 emergency grant for agriculture damaged by the bushfires, but smoke-taint will probably be excluded from the damage criteria," Mr Fitzgibbon said.
"Wine is a $40 billion industry in this country - we have major viticulture operations in the Hunter that have written-off their 2020 harvest.
"They're being cut to the ground or fed to the cattle."
Dominic Roche, Executive Chairman of Roche Group, owners of Hunter Valley Gardens, says they have seen a significant drop off in tourism numbers over the past three months.
"At this time of year Hunter Valley Gardens hosts our flagship Christmas Lights Spectacular event, a key driver for tourism which welcomes 120,000 people to the region during November to January," he said.
"With the recent fire events we have seen visitation drop by over 20 per cent compared to previous years."
Hunter Valley operators are looking to their local, regional and state bodies for assistance with recovery.
"The Hunter Valley is Australia's oldest wine region at 192 years and with a visitor economy worth over $500 million a year, it is a significant tourism asset that needs protection," Ms Tulloch said.
