South Australia’s business lobby fears for around one in every three businesses could fold by the end of July due to on-going COVID-19 restrictions
Around a third of SA businesses could be forced to close if they are not given more relief from COVID-19 restrictions, an industry survey has found.
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The end of July is looming as crunch time for around a third of SA businesses which are expected to fold unless they are given more relief from COVID-19 restrictions.
Business groups are lobbying for an easing of the current rule allowing one person for every 4sq m of floorspace inside a premise.
They want one person per 2sq m, as is the case in WA.
In a survey of 450 business owners, 36 per cent have told Business SA they will close permanently by the end of July; 17 per cent of those by the end of June.
And on SA’s premier retail shopping strips this week, 32 per cent of hospitality venues were either closed or operating on restricted hours. See table below.
Business SA chair Nikki Govan said even when room cap limits were relaxed from Friday, strict social distancing was still a stumbling block.
She said around 30 per cent of hospitality businesses with small floor areas were not able to make any money with only one customer per 4sq m.
Ms Govan, who is also owner of the Star of Greece restaurant and Victory Hotel at McLaren Vale, said because of floor area neither would be able to increase capacity from this Friday when room limits increase from 20 or 75, nor from 29 June when the cap is lifted completely.
“We cannot see why that exact same health advice about two square metres that they are using in WA is not being given here in SA because it will cost business closures,” Ms Govan said.
“With no end to the one person per four square metre rule it is not financially viable for a small business to reopen its doors, and also for those who have or will open, it will be very hard to sustain opening.’’
A State Government spokesman would only say it is negotiating with businesses.
Advertiser reporters this week surveyed SA’s major suburban hospitality shopping strips, King William Rd, The Parade, Jetty Rd and O’Connell St, to find 71 vacant shopfronts, and of hospitality venues 62 closed or on restricted hours and 129 fully open, or 68 per cent.
SDA secretary Josh Peak said the union was very concerned about 30 per cent of jobs in the non-supermarket retail sector, but mainly when JobKeeper payments by the Federal Government stopped in September.
“If there is a financial downturn at the same time we estimate that around 30 per cent of discretionary retail jobs will be in danger of being cut or having their hours severely reduced,’’ he said.
On Jetty Rd Tomi Szabo, manager, Little Black Bike and Daily Grind Skate Co said trade had been boosted by new customers and bored people who had to stay at home.
“It feels like there’s a general optimism, I think people are starting to feel that it’s not all doom and gloom anymore,’’ he said.
“Probably looking long-term the biggest worry economically is that once JobKeeper wraps up things might slow down.”
Cafe Palazzo manager Angela Vitagliano said trade had been steady on O’Connell St since restrictions were eased.
“People are dying to get in – it is like they have all of the sudden forgotten about (COVID-19) – they all want to come back out again,” Ms Vitagliano said.
North Adelaide Precinct Association President Linda Zaccara said the precinct was busy, but it would “take some time” before it returns to its pre-COVID-19 state.
“Slowly people are getting back into the swing of it and confidence is starting to rise,” Ms Zaccara said.
King William Rd Zefyr Cafe owner Mark Zito said his trade had slowly recovered from an 80 per cent drop in clientele to about half of normal trade.
He said limiting the number of patrons able to enter the premises was having the biggest impact on his business.
“JobKeeper is paying for my staff, the rest of my income is paying the bills,’’ he said.