Lloyd Phelan will close Port Fairy's Catalina Caravan Park and Take Away for good at the end of August.

Mr Phelan and his wife Janet, who took over the caravan park 12 years ago, are leaving Port Fairy and hope to secure jobs.

"The business - since COVID - it hasn't come back," Mr Phelan said.

"You can't keep going when you're not making any money."

Mr Phelan said he was bitterly disappointed he had to walk away from the business.

"We're just walking away," he said.

"We're not even trying to sell it."

Mr Phelan said it had also become increasingly difficult to find staff because of a lack of affordable housing options in Port Fairy.

"We can't get staff," he said.

"We used to have people coming in all the time asking for a job but now there's nobody."

Mr Phelan said the COVID-19 pandemic had created a "perfect storm".

"We got some money from the government but it stopped and people haven't come back," he said.

"We opened (the take away shop) on Thursday and we took $42 for the day.

"It was a really good business before COVID but not anymore.

"The fuel prices are through the roof, so that doesn't help.

"Who is going to travel when the prices are so high?"

Mr Phelan said he wouldn't sell the business, even if he had an offer.

"I wouldn't wish it even on my worst enemy," he said.

"You just can't make money over a 12 month period - you can make money for three months but that's not enough to carry you for the whole year."

Mr Phelan said there were 14 tenants who lived permanently at the caravan park.

"We've given them the proper notice but I feel for them because there is nothing to rent in Port Fairy."

An online search for rentals in the town resulted in six listings, with a three-bedroom house the cheapest at $490 a week.

In recent months, south-west organisations say they have been flooded with requests for help from people seeking affordable housing.

Brophy Family and Youth Services housing support and linkages programs team leader Leah McDonald said it was an issue across the region.

"We have seen a large increase of people in the community who wouldn't normally be accessing homelessness services, contact us for support to obtain private rentals," she said.

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