Approximately 600 players, staff and officials have been forced into isolation in Melbourne after a positive test was returned at the Grand Hyatt Hotel.
The hotel was home to various people who are connected to the Australian Open - the person who tested positive was one of the support staff helping during quarantine.
The Victorian Premier Daniel Andrews confirmed the news and said that everyone in the hotel would have to isolate until returning a negative test.
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It was later confirmed that play on Thursday at warm-up events at Melbourne Park would not take place.
"We will work with everyone involved to facilitate testing as quickly as possible," read a statement on the Australian Open's social feed.
"There will be no matches at Melbourne Park on Thursday. An update on the schedule for Friday will be announced later today."
Andrews added that “this is one case, there’s no need for people to panic."
"We have proved as a state very successful in managing these sort of outbreaks and issues."
However, this is the first locally acquired case in Victoria in nearly a month and the information from the Victorian Government Health Department seemed to contradict Andrews.
“A Hotel Quarantine worker at the Grand Hyatt Hotel has tested positive for coronavirus (Covid-19),” their official account tweeted.
“Anyone who has visited these exposure sites during the times below must immediately isolate, get a coronavirus (Covid-19) test, and remain isolated for 14 days.”
A 14-day isolation period would throw a real spanner into the works of the Australian Open, which starts on Monday. The tournament was pushed back three weeks from its usual January slot because of the coronavirus pandemic.
Including the ATP Cup and other various warm-up events there were 62 scheduled matches meant to take place in Victoria on Thursday.
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