Business survey spells economic disaster

Wednesday April 22, 2020 Written by Published in Economy

Cook Islands business owners are facing the reality that they may not survive the financial fallout caused by the Covid-19 crisis.

 

A Private Sector Taskforce Survey conducted earlier this month has revealed the extent of the forecast financial fallout for 38 local businesses due to the crisis.

For the six months to September, businesses are preparing for a 90 per cent decrease in income in comparison to the same time last year.

On average income for survey respondents is forecast at $30,216 compared to actual income generated for the same period last year of $301,093.

Taskforce chair Fletcher Melvin said the results of the survey reflect what they are hearing every day from sole traders like market vendors to cafés and large corporates.

“In the last month we’ve had 440 calls and enquiries from businesses in need,” he said.

“Cook Islands businesses of all sizes are suffering financial hardship in these difficult and uncertain times.

“The Taskforce is focused on getting businesses the help they need. Applying for the wage subsidy has been a challenge for many of the people coming to us for support. The government’s online system is an efficient way of managing the business grant and wage subsidies for many, but we’re seeing there’s a digital divide at play.”

The Private Sector Taskforce will revisit the survey at regular intervals to track the situation as it evolves

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