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How Sydney's brutal lockdown could leave the city's culture DESTROYED for years with 'soulless' Melbourne still a ghost town 12 months after its own relentless Covid outbreak

The life and soul of Sydney is just weeks away from terminal damage if the city's Covid lockdown goes into a devastating second month, business leaders warn.

Up to 20 per cent of Sydney's businesses - both big and small - will go to the wall and snuff out the city's vibrant identity if restrictions are extended again, they say.

Melbourne's business community admits it is still in deep strife after Victoria's four lockdowns left the city's famous lifestyle and culture in tatters.

The city's once bustling restaurants and cafes now lie empty or critically underused despite relaxed restrictions and owners say the CBD is a ghost town.

Now the Sydney retail and hospitality industry fears that crisis foreshadows what it too will face if lockdown drags on.

The life and soul of Sydney is just days away from terminal damage if the city's Covid lockdown goes into a second month, business leaders have warned. Seen here is the city's Rocks area which has become a ghost town under lockdown, say locals

The life and soul of Sydney is just days away from terminal damage if the city's Covid lockdown goes into a second month, business leaders have warned. Seen here is the city's Rocks area which has become a ghost town under lockdown, say locals

'Around one in five businesses say they only have enough cashflow to get them through the next month of operations,' Business NSW chief executive Daniel Hunter said.

'An extended lockdown will see businesses close down, and unlikely to reopen.'

NSW Health reported see-sawing Covid case numbers this week, doubling or halving from day to day from a low of 16 to a high of 37.

But with 38 cases recorded on Thursday - the highest of the outbreak so far - concerns are growing the lockdown will be extended again beyond the new July 16 date. 

Up to 20 per cent of Sydney's businesses - both big and small - will go to the wall and snuff out the city's vibrant identity if restrictions are extended again, they say. Pictured here is Ron Danieli at his Cafe Danieli in The Rocks

Up to 20 per cent of Sydney's businesses - both big and small - will go to the wall and snuff out the city's vibrant identity if restrictions are extended again, they say. Pictured here is Ron Danieli at his Cafe Danieli in The Rocks

Business NSW Chief Executive Daniel Hunter (pictured) has warned an extended lockdown will see businesses close down and unlikely to reopen

Business NSW Chief Executive Daniel Hunter has warned an extended lockdown will see businesses close down and unlikely to reopen

And with limited government support under the new restrictions - costing businesses an estimated $1 billion a week - the fear of a further extension sent a chill through the heart of the city's business owners.

They've told Business NSW the two-week lockdown has already had as big an impact on them as the two-month lockdown last year when most of the nation closed down from mid-March to mid-May as Covid first spread across the globe. 

'This time around there's no JobKeeper to help cushion the fall,' Mr Hunter said.

'While the NSW Government has always balanced the health and economic outcomes of this pandemic, there's no hiding that this will be a huge blow for business, big and small, right across the NSW economy.  

'That will have a huge impact on our society – not only in the loss of jobs but the mental health of those business owners and their employees who've dedicated their lives to their business.' 

Business owners in Sydney say the current two week lockdown has already had as big an impact on them as the two month lockdown last year

Business owners in Sydney say the current two week lockdown has already had as big an impact on them as the two month lockdown last year

Sydney café owner Ron Danieli, 49, admitted he was tormented by the financial crisis the lockdowns have caused him, after closing down two of his three cafes since the pandemic began.

'It takes a toll on your mental health,' he told Daily Mail Australia. 'I keep asking myself, "What did I do wrong?" It's a daily worry. How are you going to provide?

'You were a very successful business person and suddenly everything was taken away without you doing anything wrong.

'Everyone says they are okay but deep inside they are crying at night when they sleep.'

Chef Gary di Paolo, who runs Bistro On The Greens in South Coogee (pictured), says the uncertainty over how long the current lockdowns will last is causing chaos.

Chef Gary di Paolo, who runs Bistro On The Greens in South Coogee , says the uncertainty over how long the current lockdowns will last is causing chaos.

Chef Gary di Paolo, who runs Bistro on the Greens in South Coogee, said the uncertainty over how long the lockdown will last was causing chaos.  

'It's worse,' he said. 'Last year we had JobKeeper and a timeline. We knew we would be shut down for a couple of months.

'This time, with the lockdown extending ad hoc, we can't make any plans. I have bookings for events of 50 people - but I don't know what's going to happen.

'Will it be extended again? I had to throw away $1,000 worth of food last week. Do I order stock or not for next week?

'It's not like home cooking - I need to prepare... but we don't know what's going to happen.' 

In Melbourne, lockdown-weary businesses live in fear of another outbreak and another shutdown. Seen here is the city's world-famous Chapel Street with barely a person to be seen

In Melbourne, lockdown-weary businesses live in fear of another outbreak and another shutdown. Seen here is the city's world-famous Chapel Street with barely a person to be seen

In Melbourne, lockdown-weary businesses live in fear of another outbreak and another shutdown.

The city has struggled to recover from a total of almost six months in stasis under the repeated lockdowns imposed by Victorian state premier Dan Andrews. 

Despite eased restrictions since the last lockdown ended a month ago, the city centre still stands eerily quiet.

Glitzy restaurants once favoured by big business and company expense accounts now lie mostly empty with corporate Australia fearful of large gatherings for staff. 

Southbank restaurant Asado went from serving 80 at lunch pre-Covid to just 10. Treviso restaurant in Bank Place has gone from up to 200 to just 32.

Glitzy restaurants once favoured by big business and company expense accounts now lie mostly empty with corporate Australia fearful of large gatherings for staff. Melbourne's Royal Arcade is pictured still empty despite eased restrictions

Glitzy restaurants once favoured by big business and company expense accounts now lie mostly empty with corporate Australia fearful of large gatherings for staff. Melbourne's Royal Arcade is pictured still empty despite eased restrictions

And as many companies continue to keep staff working from home, the city's vibrant cafe culture has faced ruin.

Those still surviving live in fear of yet another Covid cluster.

'We are one outbreak away from the next lockdown, and that's not lost on any business leader; it's not lost on any worker in the state,' Victorian Chamber of Commerce and Industry chief executive Paul Guerra said.

'It's a pessimistic view still in Melbourne at the moment,' Ollie Gould, executive chef of Southbank told The Australian.

'Covid's still here and an outbreak could happen at any time.' 

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