FALLING water levels at Lake Eppalock could be to blame for a dip in the number of visitors to the region over the Christmas period.
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The dam is currently sitting at about 55 per cent capacity and is expected to fall to 43 per cent by Easter after planned releases by dam caretaker Goulburn-Murray Water (GMW).
GMW manages the water on behalf of water-use license holders. Releases deliver water to its customers.
Bendigo Motel Association president Charlie Loftus said less water in the dam meant fewer travellers through his doors.
"At Christmas and New Year's, Australian holidaymakers go where there's water," he said.
Bendigo's tourism website advertises Lake Eppalock as "full to the brim, perfect for water based activities and family picnics".
"What we'd really like to see is council working with GMW to make sure there's more water in the lake over the holiday break," Mr Loftus said.
"We've got a wonderful lake here and it's a shame to see it half full. It's taking away the region's tourism potential."
Mr Loftus said ideally, water releases would be held off until after the Easter holiday period.
Lake Eppalock Holiday Park owner Peter Rose said a balance needed to be struck between the needs of irrigators and recreational lake users.
He said he had received a number of cancellations in the lead up to Christmas from people concerned about the falling water level.
"I understand that the lake was built for irrigation and licence holders are entitled to their water rights but the recreational aspect needs to be recognised in the way the lake is managed," he said.
He called for a stop to water being released for environmental flows when the water level was low.
He estimated out-of town visitors to the lake brought $25-30 million to the region each year.
Members of the Save Lake Eppalock Facebook group are holding a protest against water releases at the Lake Eppalock spillway this Saturday from 11am.