The abandoned psychiatric hospital, once known as Aradale Asylum, has long been a drawcard for tourists seeking ghost tours, historical tours, and paranormal experiences. Its closure, reportedly for safety assessments and planned renovations, has caught local businesses off guard, with many reporting a noticeable decline in foot traffic since the gates were locked.
Ararat, a rural town of about 8,000 people, relies heavily on tourism generated by the asylum's eerie reputation as one of Australia's most haunted sites. The Ararat Tourism Association estimates that the site attracts tens of thousands of visitors annually, contributing millions of dollars to the local economy through accommodation, dining, and retail spending.
'It's devastating,' said local café owner Sarah Mitchell. 'Our busy season is winter and spring, when ghost tours are popular. Without the asylum, people are cancelling their trips. We're already seeing a drop in bookings.'
Pyrenees Shire Council, which manages the site in partnership with heritage authorities, described the closure as temporary and necessary to address structural concerns and ensure visitor safety. 'We understand the frustration, but public safety must come first,' a council spokesperson said. 'We are working to complete the assessments as quickly as possible and hope to reopen before the end of the year.'
However, with no firm reopening date announced, business owners are calling for clearer communication and financial support. Some have suggested the closure could be prolonged if funding for repairs is not secured.
The National Trust of Australia, which has previously raised concerns about the site's maintenance, has urged a long-term management plan that balances heritage preservation with tourism viability.
While the asylum's closure is temporary, its economic impact underscores the vulnerability of rural communities that depend on niche tourism attractions. The situation in Ararat echoes challenges faced by other towns that have lost key tourist landmarks due to safety closures or redevelopment.
Local politicians have been lobbied to intervene, with Member for Western Victoria Bev McArthur promising to raise the issue in state parliament and push for a fast-tracked reopening timeline.