A major tourism drawcard in a west Victorian town has been suddenly shuttered, jeopardising local businesses and the livelihoods of more than a dozen workers who have spent years keeping the historic site open.

Melbourne Polytechnic has suspended ghost tours at the Aradale Asylum in Ararat, which it manages, due to safety concerns to do with the asylum’s upkeep.

Announcing the closure, ghost tour group Eerie Tours said it had put an “unimaginable amount of time and money” into the attraction, which now “faces further disrepair”.

It said it had spent 15 years “fighting to keep the asylum alive”.

“Our 14+ guides, investigators and management have lost their income overnight,” the group wrote online.

“We are proud to have helped so many put food on their tables. They have families to feed.

“The Ararat accommodation community are bleeding money from cancellations and will continue to suffer as long as the site is closed.

“Our friends at the service station who fuel both cars and bodies late into the night will notice it too”.

Ripon state Labor MP Martha Haylett called it a “devastating blow to Ararat and the wider Grampians region”.

“I have written to Melbourne Polytechnic demanding they reverse this decision and sit down with Eerie Tours to find a pathway for the tours to continue operating into the future,” she said.

“I am deeply disappointed by Melbourne Polytechnic’s management of Aradale.

“For years they have ignored my inquiries and failed to recognise the enormous contribution Eerie Tours makes to our local economy, tourism industry and community.”

Melbourne Polytechnic leases the asylum from the state government and runs a winery from parts of the property.

Friends of J Ward member Graeme Ferguson, who conducted day tours of the asylum, said it was “very disappointing” that the historic landmark had “not been touched since it closed” in 1993.

About 70 buildings made up the asylum, which operated for 126 years.

Many of the buildings are inaccessible, with only a handful open to the public for tours.

It’s understood there may be a review later in the year to determine if they can continue.

J Ward Museum in Ararat, which is owned by Ararat Rural City Council, is still running as normal.

The council said it recognised the “heavy toll Aradale’s sudden closure takes on our tour operators, particularly Eerie Tours and Friends of J Ward, and the immediate flow-on impacts on our accommodation and hospitality businesses”.

“While safety concerns surrounding the site make this a complex issue, the resulting strain on our tourism sector is very real, and we remain fully committed to supporting our local business community.”