Last week, the Victorian Civil and Administrative Tribunal granted Mr McFeely, the owner of The Peel Hotel, the right to refuse entry to heterosexuals and lesbians. Mr McFeely said yesterday he believed the move was necessary to provide gay men with an environment where they could freely express their sexuality.

"I was expecting some flak," he said. "But I did it to protect the integrity of the venue and to ensure the safety and comfort of my regular gay clientele." Mr McFeely said he went to the tribunal after his gay patrons expressed concerns over the number of heterosexuals and lesbians frequenting his pub. They were made to feel like zoo exhibits, and violence ensued occasionally, he said. He said that before the decision it was illegal to refuse entry to a large group of people based on their sexuality.

"Over the last few years I have witnessed large groups come in and make a lot of guys feel uncomfortable," he said. He said there were more than 2000 venues in Melbourne that catered to heterosexuals, but his pub was the only one predominantly for gay men.

But one question kept resurfacing on radio yesterday: How can you tell who is gay and who is not? "With experience you can tell," said Mr McFeely. The owner of gay and lesbian dance venue The Market Hotel, Spiro Condos, said the determining someone's sexuality was difficult. "The correct attitude is what is important when choosing patrons," he said. "I understand a need for the ruling, however it is taking a backward step for our fight for equal rights. "It's a very sad day when two friends, regardless of their sexuality, can't go into a venue and dance together."

Kevin Attwood, owner of one gay men's venue, The Exchange, in Prahan agreed with the decision. "There are a lot of gay people that are uncomfortable in a mixed environment, and that is just something that people forget," he said. Liberty Victoria's vice-president, Michael Pearce, backed the decision. "I don't think this treats heterosexuals unfairly," he said.

"There are countless other hotels where heterosexual people can go and meet." Victorian Gay and Lesbian Rights Lobby spokesperson agreed it was important to preserve an environment predominantly for gay men.