Qld businesses brace for messy Christmas as uncertainty remains around reopen rules

Fed-up business owners expecting Christmas to be a trainwreck are hitting out against the politics and uncertainty surrounding the reopening of the state next month. This is what they need to know now.

Queensland businesses are bracing for a sales trainwreck over Christmas because they have no idea what rules the Palaszczuk Government will enforce for vaccinated and unvaccinated people when borders open.

Instead of the usual Christmas bonanza, the latest Chamber of Commerce and Industry Queensland’s (CCIQ) pulse survey shows close to 40 per cent of businesses had a drop in sales revenue in the September quarter, and they expect it will stay the same in December.

Fed-up business owners have hit out at the politics surrounding borders, uncertainty about vaccine rules and Victoria and NSW opening up to international travel while Queensland lags behind.

Bar supervisor Kathy Riley, 25, working on a quiet afternoon in the restaurant at the Caxton Hotel in Petrie Terrace, Brisbane. Lyndon Mechielsen/Courier Mail

The 764 businesses were surveyed before the most recent border announcements were made, but with just six weeks until the interstate borders are scrapped, businesses still feel in the dark.

CCIQ Policy and Advocacy General Manager Amanda Rohan said businesses needed clarity on four things:

– The rules around vaccination status of staff and patrons;

– Whether the contact tracing app will include vaccination status;

– What happens if businesses are exposed to Covid-19, and;

– Advice on Rapid Antigen Testing

“Without those essential details now just six weeks before borders open, the reality is the

impact is starting to show with a poor business confidence outlook for the December

quarter,” Ms Rohan said.

“For the most part businesses have only just been getting by for a year which we know a lack of confidence caused during snap lockdowns, restrictions and border closures was responsible for.

“Now they’re desperate to be able to make the most of the reopening in time for Christmas to try and re-coup some of those losses.”

The report showed that general business conditions, total sales revenue and profitability all deteriorated during the September quarter.

Close to 40 per cent of businesses surveyed indicated sales revenue had fallen in the September quarter.

Expectations of sales revenue for the December quarter indicate a further weakening, with 41 per cent of businesses believing their total sales will remain unchanged.

The levels are similar to the same time last year when the impact of the pandemic was more evident in Queensland and while expectations for the December quarter are for “marginal improvement”, its “underwhelming” when compared to the historic Christmas boom.

Ms Rohan said if businesses are to speed up their long term recovery and cash in on Christmas, they need to know “what they’re up against”.

“We know the State Government’s road map shows borders and the economy will reopen to fully vaccinated travellers just days before Christmas but we’ve been saying since April businesses are desperate for clearer details around what new Covid trading conditions mean for them.”

“We’re still waiting for that detail which is why the December quarter outlook is weak.”

The Shadow Treasurer David Janetzki said the State Government should immediately consult business and develop a plan for when borders open next month.

“These are not the numbers you would expect if the Treasurer’s so-called ‘Economic Recovery Plan’ was actually working,” he said.

“With no plan for business, the shadow of COVID-19 will loom over business conditions well into next year.”

David Janetzki, Shadow Treasurer. Picture: News Corp/Attila Csaszar

On October 29, Deputy Premier Steven Miles said the government was consulting business around serving vaccinated and unvaccinated customers.

“No doubt there will be further announcements there,” he said.

Information on the Queensland State Government website says that “more information on other restrictions will be provided in due course.”

The statewide CCIQ survey uses a Pulse Business Index (PBI) to measure the state of the industry.

Across the board, the PBI for Queensland business is at 46.2, which is on the lower end of the ‘satisfactory’ level.

The PBI for profitability fell six points since the June quarter, from 40.8 to 34.8 with one in two businesses said they had a weakening profit margin.

But there is a slight improvement for the next quarter with the PBI for December back to 40.8.

Queensland Hotels Association board member and Caxton Hotel owner Ross Farquhar said the industry needed guidelines so they could best prepare for the summer season.

“It would be nice if it was put out in writing for us with what to do, information gives us certainty, so you would know you’ve got to do one thing or the other, we are sort of all holding out.”

He said he would be prepared to only have vaccinated customers if that’s what is enforced.

“If that’s the case we will have to check, it will be extra security costs and probably a bit of discussion at the front door but I’d hate to be a little coffee shop who would have to do that.”

Mr Farquhar is confident business conditions will improve over the coming months but hopes guidelines are clear cut before sport at Lang Park starts again.

Acting Treasurer Stirling Hinchcliffe said Queensland is seeing the lowest levels of bankruptcy ever recorded in Queensland.

The CCIQ Pulse survey was taken amid SEQ lockdowns, which not only helped our economy to recover sooner, but which were also accompanied by $600M in state and federal support.

“It shows that as our state moves towards reopening, Queensland businesses are optimistic about the quarter ahead, and about 2022.”

He added Queensland has almost 100,000 more people in jobs than in March 2020.