BENDIGO'S accommodation providers and council say the White Night Bendigo announcement is "hugely exciting" for the region.
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The state government on Saturday confirmed the event will run in Bendigo on October 2 this year.
Creative director Joseph O'Farrell said the team hoped to attract as many people as the inaugural 2018 event, in which 60,000 people flooded Bendigo's city centre.
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City of Greater Bendigo's tourism and major events manager Terry Karamaloudis said the council was "delighted" with the plans.
"We are relieved and very excited that this iconic event has been announced to return to Bendigo," Mr Karamaloudis said.
"Our partnership with the state government, Visit Victoria, and the creative team is very strong. We will commence planning in earnest immediately.
"We see this as a very positive sign on the way to recovery, following what was arguably the most tumultuous time for the tourism and events sector, and our visitor economy."
Bendigo Motels Association president Kristyn Slattery, who owns the Julie-Anna Inn, said White Night could help accommodation providers bounce back after a difficult 2020.
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"Obviously it's still five months away but it's definitely exciting," she said. "We saw 60,000 people around Bendigo last time and the motels were at capacity then.
"It's exciting to think White Night is on the calendar and that could happen again in October."
The latest announcement comes after the 150th Bendigo Easter Fair was pushed back for a second year due to COVID-19 outbreaks and restrictions.
"There's clearly more confidence with the state progressing through the Public Events Framework," Mr Karamaloudis said.
"We're moving quickly in the right direction, which leads the state government and Department of Health to have greater confidence that large-scale events in public spaces will be allowed to resume by October."
Mr Karamaloudis said White Night was one of several events that would be happening in Bendigo this year.
"The major events portfolio has been very busy," he said. "We have a number of events secured that are set to play out in 2021.
"We are negotiating around 25 new major sporting events for Greater Bendigo and planning new events on gastronomy.
"We are delighted with White Night but can assure you that major events are firing up quickly again.
"We will be announcing a significant new event for the July school holiday period. I can safely say it's something that hasn't been done in Greater Bendigo before."
Ms Slattery said more major events would help boost Bendigo's accommodation, tourism, and hospitality sectors.
"We're yet to see any mass movement towards consumer confidence as far as travel is concerned," she said. "But every day is a step in the right direction.
"We're certainly starting to see more motels at 100 per cent capacity, which means people are moving around and visiting Bendigo."
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