Public holiday to mourn Queen begins costly four-day weekend for retailers

Prime Minister Anthony Albanese has confirmed Australia will have a one-off public holiday on Thursday, September 22 as a national day of mourning following the death of Queen Elizabeth II.

The following day - Friday, September 23 - is a public holiday in Victoria for the AFL grand final parade in Melbourne.

It means Victorians will bask in a rare four-day long weekend which sounds great for holiday-makers and accommodation venues but not so for dining venues hit with an extra day of high penalty rates for staff.

It has prompted Australian Hotels Association (AHA) executive member and former owner of Bendigo's Hotel Shamrock, Ray Sharawara, to call for some sort of compensation.

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"I know people who own accommodation venues will benefit from the extra public holiday with people moving around the country and will probably do very well from it," Mr Sharawara said.

"The vibes I'm getting in accommodation bookings are already coming in thick and fast.

"I know it is out of respect for the Queen and it's very sad but it is an impost on us and it makes its hard for people to find the money to pay penalty rates.

"They will be faced with the choice of paying staff penalty rates or shutting and have no business. Most I think will stay open."

Mr Sharawara said it was a difficult issue.

"It's a significant event in the history of mankind," he said.

"We've had 70 years of the Queen, the longest reigning monarch in British royalty, and we are part of that parliamentary system.

"The government would have us have a public holiday but won't offer us compensation for the extra burden of the wage bill we incur."

Mr Sharawara said the AHA was meeting on Tuesday where the matter of the extra public holiday was likely to be brought up in conversation.

"We might have to endure a bit of pain. I'd be happy for the government to provide compensation - but they won't," he said.

Quality Hotel Lakeside manager Kelly Sullivan said the public holiday had fallen on the wrong day for her venue.

"We had a few conferences booked in for the Thursday but now that it's a public holiday they have been cancelled," she said.

"We had some corporates booked in to stay for the Wednesday night and were going to travel home Thursday, but travelling home is still considered a work day so they've cancelled their accommodation."

Ms Sullivan said one of the conferences could not be postponed which means there was no chance of regaining those bookings at a later date.

"Because Thursday and Friday is now going to be quiet for us, we've decided to close the restaurant those nights which means casual staff won't have any hours."

The venue is already fully booked from Saturday night onwards due to a big volleyball tournament in Bendigo the following week.

However, it means it won't be able to cash in on the four-day long weekend.

"Maybe we might get some people Thursday, Friday now who want to visit and go home Saturday to watch the AFL grand final," Ms Sullivan said.

"But if they want a longer stay of three to four nights, we will be pushing them to book with neighbouring properties so we can still get people visiting Bendigo."

Be.Bendigo chief executive Rob Herbert questioned why the Thursday was chosen as the memorial day - the day before Victoria's AFL public holiday.

"I appreciate the impacts on small business with the extra charges," he said.

"I guess for the hospitality and tourism sector there is a potential uplift but whether it's enough turnover to offset the extra costs ... it will be up to each employer to make the call as to whether they trade or not on that day."

Mr Albanese said he had written to premiers and chief ministers asking they declare the Thursday a public holiday to allow people to pay their respects for the Queen.

"They have all agreed that it's appropriate that it be a one-off national public holiday", he told ABC's Insiders program.

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A national memorial service will take place in the Great Hall of Parliament House in Canberra at 11am, with the service broadcast across the country.

The Queen's funeral will take place in London on Monday, September 19.

Mr Albanese said the Queen was a much-respected figure in Australia and he would travel to the UK with past prime ministers in order to attend the funeral

Federal parliament sittings have been cancelled for the coming week, but the prime minister said the lost time would be made up.

"One of the days will be devoted to people being able to give their condolences on the passing of Queen Elizabeth," he said.

Opposition Leader Peter Dutton said he supported a public holiday in honour of the Queen.

Australia typically recognises 11 nationwide public holidays, including one commonly held in June for the Queen's Birthday despite the day not aligning with her April birth date.

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