Business fears rise
Survey reveals anxious Coast operators see limited future
NEARLY all Gold Coast businesses fear they will only survive for a year once COVID-19 economic stimulus is cut off.
Shock data in the latest Pulse survey by the Chamber of Commerce and Industry of Queensland (CCIQ) shows 99 per cent of those polled have grave doubts about their longterm viability amid the pandemic recession.
The quarterly poll reveals business confidence on the Coast is lower than the state average despite some recovery in the September quarter.
Gold Coast Central Chamber of Commerce president
Martin Hall said businesses continued to struggle, particularly over the uncertain reopening date of the NSW border.
Mr Hall said many businesses had been harmed by the ongoing crisis impacting on tourism, previously the Gold Coast’s biggest industry.
“We have been calling for months to have restrictions eased further because enabling business to open up, while still operating in a COVID-safe way, will allow them to trade profitability,” he said.
“The Christmas season is crucial for businesses and we need to give them a real opportunity to fully open up and trade viably, so they can stay open and keep their staff employed.”
Key findings of the survey of 1000 operators revealed:
• Nearly two-thirds of businesses forecast weaker economic performance for both the state and national economy.
• The Gold Coast region continues to be among the most impacted by ongoing border restrictions and lack of tourism, despite a modest rebound in the September quarter.
CCIQ economist Jack Baxter said businesses felt the recovery being experienced to date would be as good as it gets if there are no changes to current operating conditions.
“Many small businesses are still experiencing a stimulusdriven recovery in sales and revenue but ongoing restrictions are constraining their ability to manage costs and boost profitability,” he said.
“One-half of respondents indicated their profitability continues to decline, despite a sharp improvement being recorded across the performance and cost indicators as business reopen.”
Mr Baxter said the planned end of stimulus measures including JobKeeper in March provoked enormous anxiety.
“When stimulus support ends, and when loan repayments, deferrals and tax breaks resume, businesses must be standing on their own two feet,” he said.
“This is unlikely, as 99 per cent of businesses are indicating they are unsure of their ability to operate beyond 12 months without support, especially if current restrictions are not lifted.”