Australia's art minister, Paul Fletcher, has warned of the "most devastating cultural recession in generations", following the closures of many major arts institutions in the country as a result of the coronavirus pandemic.

Fletcher made the announcement during a virtual roundtable with leaders from the culture sector to discuss the growing impact of COVID-19 as more galleries, museums and theatres are forced to close down.

The teleconference roundtable representatives of national institutions, the Australia Council for the Arts, indigenous arts groups and visual arts organisations, who have called for AU$850m (US$500m) in financial support in the face of months of closures and staff layoffs.

The government of Australia says that the challenges facing the sector are significant. In response to the pandemic, it has banned "non-essential" gatherings of more than 100 people. The country has had more than 450 positive tests for the virus and five deaths, with a sharp rise in cases over the last week.

"Like all Australians, they are showing great community spirit in calmly and efficiently dealing with the circumstances they are facing in the near-term so we can come through this challenging period,” Mr Fletcher said.

“I thank sector representatives for their time and contributions at today’s roundtable, and for their leadership across the creative and cultural sector. A number of practical suggestions were put forward during our discussion."

The arts economy contributes an estimated AU$112bn (US$63.5bn) to the Australian economy each year. More than 80 per cent of Australians attend arts events each year; 40 per cent of international tourists attend arts events, and more than 600,000 Australians are employed in the sector.

"Given the significance of the cultural and creative sector – both economically and culturally – it is important we work together on a constructive approach to preparing for potential impacts and fully understanding the support available," said Fletcher.

"The information I obtained today from this roundtable will feed into whole-of-government planning on COVID-19 responses."