Queen public holiday: Australian business groups express concern over lost revenue and staffing disruptions

Australian retail and business groups have joined the medical association in raising concerns about disruptions caused by the public holiday to commemorate Queen Elizabeth II after her death on 8 September.

The prime minister, Anthony Albanese, made the announcement on Sunday that a “one-off public holiday” would be held on 22 September as a national day of mourning, after the Queen’s funeral on 19 September.

While there were suggestions the unscheduled public holiday could cost the economy as much as $1.5b, the Australian Retailers Association (ARA) said on Monday it respected the government’s decision but the holiday would create complications for businesses with store closures and staff scheduling challenges.

Related: Australia to have public holiday to mark the death of Queen Elizabeth II, Anthony Albanese announces

The ARA called for states and territories to clarify trading conditions for 22 September public holiday.

The chief executive of the ARA, Paul Zahra, said “there will also be a small but unexpected loss of trade, and additional staffing costs, which may impact cashflows for small businesses.”

The chief executive of Council of Small Businesses Organisations Australia, Alexi Boyd, said “what we’re hearing form our members, some are welcoming the holiday and others will struggle.”

Boyd said appointment-based businesses, like allied health and hairdressing, would have to decide whether to move bookings or run at a loss because of increased costs to staffing.

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Hairdressers faced the decision in the midst of formal season. But for the events industry which has contracts and ticket prices locked-in, they might not have the option, Boyd said.

“Those reliant of tight supply chains for daily stock are particularly concerned,” she said, as “parts of the supply chain may not be operating”.

The Victorian head of the Australian Industry Group, Tim Piper, said the timing would prove particularly costly for Victorian and Western Australian businesses who will have to pay penalty rates across four days.

“In Victoria we’ve got a Footy Friday, meaning Thursday and Friday off,” he said. “It’s a long weekend that’s as long as Easter and we haven’t had the chance to plan for it.”

He said Western Australia was in a similar position with the Queen’s birthday holiday on the following Monday. He said this was “unfortunate irony”.

Piper accepted that the public holiday should be held, but said “we’ve got the situation in Victoria where we’re having a holiday for a football game, you have to question the value of that.”

He said one member with 70 employees had estimated they would lose between $35,000 and $40,000 for the one day.

The managing director of Market Economics, Stephen Koukoulas, tweeted his “quick calculation suggests this will cost the economy $1.5bn”.

Albanese defended the disruption, saying tradition could sometimes be inconvenient, but was important.

He told the Seven network that essential services would be open and penalty rates would apply as was usual with public holidays. But other details were still being worked out with states and territories.

“A one off public holiday and a national day of mourning is an appropriate response that was agreed to by myself and the premiers and chief ministers,” he said.

The president of the Australian Medical Association, Prof Steve Robson, said the health system would take a hit because of the extra holiday.

“The short notice that’s been given for this public holiday will have ramifications for patients and of course an already struggling health system,” Robson said.

“Hospitals, surgeries, and general practices will have patients booked in for appointments and operations and some patients may have waited months or in some cases years for these appointments or operations.

“It is very important that we commemorate the passing of the Queen but it is also important that politicians think these decisions through more carefully. More notice of a public holiday would have helped us to plan ahead and minimise the impact on patients and an already struggling health system.

“We will once again be playing catchup and having to explain to many patients that their care will be delayed, which in some cases may be for several weeks or more.”

Albanese said it was not correct to claim medical procedures would not go ahead on a public holiday.

“The idea that operations don’t occur during a public holiday is of course not correct,” he said.

“Medical procedures, of course, are always a priority.”