The Clunes Club Hotel is one of just six tourism projects in Victoria to receive a share of the $3.6 million funding pool in the latest round of the Federal Government's Tourism Demand Driver Infrastructure programme (TDDI).

The restoration and reopening of the hotel will see 8 luxury one-bedroom accommodation suites on the first floor of the historic building and a 60 seat café/restaurant plus a 120 seat function space on the ground level.

It will drive tourism business and provide a boost for the village of Clunes. This idyllic village is best known for its international Booktown festival, is also the home of one of Mad Max's iconic scenes and more recently the location for filming of Tomorrow When the War Began.

Owners Chris Malden and Wayne Cross were ecstatic when they were received the news late last week.

“This is a significant acknowledgment of the importance of tourism to our region and will be the beginning of a bright new future for Clunes. It has been our dream for a number of years to breathe new life into this grand old building right in the heart of the historic streetscape,” says Mr Malden.

“There is so much to see in and around Clunes, but a shortage of high-end accommodation has always been a stumbling block. With other recent investments in the town including the Community Warehouse development plus the recent reopening of the Clunes train station, this funding grant will further bolster economic development and I think we will see the township flourish.”

Work on the restoration is scheduled to begin within the next 3-4 months and the owners hope to see the Clunes Club Hotel open early in 2017.

Through its offerings, the Club Hotel will encourage domestic and international visitation to the region while providing ongoing social and economic benefits to residents and local traders with the creation of long term employment.

Minister for Tourism and International Education, Senator Richard Colbeck, said the projects would provide a boost for regional tourism in Victoria.

“These tourism infrastructure projects will help Victoria's tourism industry grow by supporting jobs and injecting much needed funds into local communities,” he said.