Page 14 - IB June 2020

Business Business

SURVEYING THE DAMAGE

THE COVID-19 EFFECT

By Samantha Magick return to business as usual this year.
The three main challenges identified by respondents were
It is a season of surveys across the Pacific. Governments, not knowing how long the crisis will last, the impact of closed
international organisations, industry bodies and chambers international borders and poor cash flow. A lesser challenge
of commerce are surveying the private sector to assess the was a lack of knowledge and skilled staff.
impact of the COVID-19 pandemic. 40% of the respondents said they needed support to access
While the sample size of most of those already published new markets, either locally or overseas, slightly more than in
has been small, the hope is that the results will inform the the first survey.
type of support provided by governments and multilateral The PTI survey also asked respondents about their mental
agencies in the middle to longer term. health. Nearly a quarter of them said that COVID-19 is having
The Pacific Trade and Invest (PTI) Business Monitor is sur- a very negative impact on their mental health, and almost
veying a small number of businesses every two weeks over a two-thirds said it is having a negative impact.
six-month period. Businesses have taken a number of actions to reduce the
In its most recent report (the second in the series) released damage inflicted by COVID-19. 56% have reduced operational
in early June, PTI says the impact COVID-19 is having on costs, half have cut working hours, 39% have reduced staff
businesses is starting to decline; 88% reported this impact numbers, and 26% have reduced staff wages.
compared to 91% in survey one. The second survey had 143 A smaller number has diversified products and services,
respondents, all online and all decision makers or owners in requested rent relief and pivoted to sell more online. Just 7%
small and medium sized enterprises (SMEs). have taken no action at all.
Almost three-quarters of businesses in Fiji reported a “very Survey respondents have concerns about their government’s
negative” impact from COVID-19. Across the board, 90% of response to business support in the pandemic. While 29% have
businesses reported a decline in revenue of some magnitude. already accessed government support, and 38% said they have
70% of businesses were confident they will survive COVID-19 not yet, but will require it, across the region 44% are “ex-
but half do not expect revenue to return to pre-COVID levels tremely or somewhat” dissatisfied with government response.
until next year or later. A quarter of businesses expect to This figure is even higher for PNG (69%) and Fiji (60%) when

Source: Pacific Trade and Invest Business Monitor

14 Islands Business, June 2020