Lorne businesses hurting after extreme weather events

Published on 02 March 2026

Businesses in Lorne are reporting serious economic impacts from the overlapping emergency events during January, with data showing a significant drop in expenditure.

The coastal township relies heavily on revenue from visitation during summer, with January traditionally its peak month of trade.

However, card transaction data shows a major drop-off this year – with an average daily spend in Lorne between 1 and 15 January of $386,000 dipping to $172,000 for the latter half of the month, following the Great Ocean Road flooding.   

Our Economic Development team has surveyed 68 businesses in Lorne, with 31 per cent saying they had lost the equivalent of a month of income, and a further 47 per cent reporting loss of at least a week’s income.

This feedback was consistent across retail, accommodation, hospitality and tourism-based businesses.

Business owners believed a large impact on Lorne visitation came from confusion about traffic impacts and the safety of the town.

Of those surveyed, 83 per cent said media reporting about ‘fires, closures or risk’ had negatively affected their business.

For example, while the Great Ocean Road remained open into Lorne from 16 January onwards and businesses were operating as usual, reporting that ‘the Great Ocean Road is closed’ – due to its closure south of Lorne – created confusion and was seen as a deterrent for people to visit Lorne.

Survey respondents also attributed negative business impacts to:

• the 15 January flooding (89 per cent);
• fires in the Otways (77 per cent);
• evacuation advice for nearby towns (77 per cent); and
• Extreme fire danger ratings on various dates (72 per cent).

Only five per cent of respondents said there had been no negative impact on their business.

Councillor Leon Walker said business confidence in the town had also taken a hit, with more than half of respondents expecting lower-than-usual trade until Easter, and advance accommodation bookings down on previous years.

“We really want everyone to know that Lorne is open and the town is keen to welcome visitors,” Cr Walker said.

“Locals rallied so strongly to help those impacted by the flooding – the best way for everyone to say ‘thanks’ is to visit Lorne and the surrounding towns soon.

“It’s a beautiful place for a day trip, overnight stay or extended visit at any time of year.

“If you can make it down in the coming weeks and beyond, the community would really appreciate your support.”

The survey data supports advocacy on behalf of local businesses and will enable us to work with partners on a recovery program aimed at encouraging people back to Lorne.

Council and peak tourism body Great Ocean Road Regional Tourism are focusing on measures to support visitation for the remainder of the year, in an effort to help businesses recover some of the lost income.