Businesses see big declines after coronavirus diagnosis
The confirmation of novel coronavirus disease (COVID-19) cases here has already caused a sharp decline in business, compounding the slowdown that began after the March 2 elections.
As a result, the hospitality industry is uneasy as some operators are grappling with how they will be able to stay afloat while acting in the best interest of their staffers.
Thousands of jobs are said to be on the line, not only from the hotels, resorts, restaurants, cafes, and bars, but also from the related aviation and transportation sectors, should the situation take a turn for the worse.
President of the Tourism and Hospitality Association of Guyana (THAG) Mitra Ramkumar yesterday told Stabroek News that the presence of COVID-19 here is a tremendous blow to the tourism sector as persons are cancelling their travel plans.
He explained that should the disease get out of control, the industry will be crippled as he noted that at this moment many operators are on the verge of shutting operations.
Ramkumar explained that hotels have begun to record low occupancy and booking rates.
He commented further that with the suspension of American Airlines flights to Guyana from New York and Miami, businesses will feel the effect.
Out of the recognition of the effects the disease can have on businesses, he said overtures have been made to banks and the Guyana Revenue Authority for waivers on interest and taxes, respectively. “If this isn’t done, we will kill the industry. We have begun to see the domino effect and it all started after we confirmed our first coronavirus case,” Ramkumar pointed out.
In addition, he explained that businesses have also moved to ensure their facilities are sanitised and staff have been briefed on the protocols to follow should they come into contact with someone who shows symptoms of the illness.
“The coronavirus has impacted the industry worldwide as destinations are closing their ports. We are now feeling it because it is spreading. The effects of this is inevitable and can possibly force a shut down in the industry,” Ramkumar stressed.
Meanwhile, several operators of eco-tourism operations yesterday announced that they were closing their operations for a 14-day period.
A notice posted on the VisitRupununi Facebook Page informed persons that the decision was taken to avoid the spread of COVID-19.
Joyanne (only name given), an administrator of the VisitRupununi page, which is dedicated to promoting the region’s ecotourism, told Stabroek News that tourism operations such as Caiman House have suspended operations.
She further explained that the Yupukari Village Council and managers of the Caiman House made a decision to halt operations for 90 days to avoid any possible implications of COVID-19. Other tour operators, which are also community led, made a decision to close for a twoweek period.
“Meanwhile, most tourism operations have seen withdrawal of bookings. All major events in the region, including the rodeo, have been cancelled and/or postponed. The regional administration has issued recommendations to the public to take all precautions, limit social gatherings, and work from home,” Joyanne explained.
She added that many commercial businesses have closed their doors in the region and only supermarkets and grocery stores remain open.
“There may be a possible border closure considering the free trade zone and the extent of cross border travel with COVID- 19 in Boa Vista,” she further added.
‘Not making money’
In Georgetown, all supermarkets were open yesterday and there was heavy traffic. Most persons were observed to be shopping for their regular supplies in addition to hygiene products.
At several restaurants, there was little to no traffic as operators indicated that there has been a decline after the March 2 elections. They explained, however, that they saw a more pronounced decline in business after the first case of COVID-19 was announced. Over the weekend, operators said, they had done poor business as few persons frequented their establishments.
While the Giftland Mall’s strip is usually a hive of activity at the weekend, many persons stayed away.
“We would have to say ‘Excuse me! Excuse me!’ all night but not this Saturday night. Business has been bad… we had part time staff but we had to let them go because we are not making money,” a cashier at one of the businesses said.
At Hardrock Café at MovieTowne, Fharis Mohamed, Sales and Marketing Manager, told Stabroek News the confirmation of the COVID-19 coupled with the current political climate has
caused a slowdown of business. He stated that since the confirmation of COVID-19, they have begun to place hand sanitiser on all dining tables and are wrapping cutlery with disposable napkins.
He noted, too, that they have an educational booth set up at the entrance to provide any information to patrons who are unsure of what the virus is and what they can do. Mohamed said they are looking at the possibility of cutting back on full time staff and offering patrons take-out options.
At Jaxx International, there was a similar situation since the elections.
At both Caribbean Cinemas and MovieTowne, where filmgoers usually flock over the weekend, there was a decline in attendance last weekend in a sign that many stayed away from public gatherings.
President of the Georgetown Chamber of Commerce and Industry Nicholas Boyer-Deygoo told this newspaper yesterday that members have reported that since March 3 they have seen a decline in their daily operations.
“Things are really tough now… from the manufactured political climate after the March 2 elections and now the coronavirus… we have seen a huge slowdown that is somewhere between 40 and 50 per cent down in sales and traffic of persons shopping. If you compare this to last year activities, you can see the difference,” he said.
Boyer-Deygoo explained that some businesses depend on persons entering the store to secure sale and with the fears of COVID-19 this is not happening.
He said, too, that the Chamber is seeking to educate its members on handling the situation and what possible systems they can put in place to keep staff healthy.
Boyer-Deygoo said, too, that the organisation will be organising relief measures to assist businesses since this is a “tough period of time.”
“Businesses are already feeling the effects even though the virus is now hitting the shores… we don’t know how long this is going to last for but it can be here for a prolonged period and that will not be good for any business,” he pointed out.
Chairman of the Private Sector Commission Gerry Gouveia, in an invited comment, said COVID-19 has really hit businesses hard. At this point, he said, it is very difficult for businesses to determine how they can keep their staff on payroll and provide the service customers depend on.
He noted that they have met with officials from the Ministry of Public Health on the guidelines they have set out and are working to educate their members of the necessary precautionary steps they need to take.
Gouveia stressed that while some businesses are contemplating scaling down on staff and operations, no firm decision has been made as yet.