Gold Coast business: 99 per cent of owners expect to fail within a year of stimulus ending

Nearly all Gold Coast businesses fear they will fail within 12 months unless one critical step is taken to save them.

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 Chamber of Commerce and Industry’s latest Pulse Survey show 99 per cent of those polled have grave doubts about their long-term viability amid the pandemic recession.

The quarterly poll reveals business confidence on the Gold Coast is lower than the State average despite some recovery in the September quarter.

GOLD COAST ECONOMY: WINNERS AND LOSERS DURING COVID-19

The COVID downturn has severely impacted on the economy.. Picture: NCA NewsWire / Christian Gilles

Gold Coast Central Chamber of Commerce president, Martin Hall, said local businesses continue 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 COVIDsafe way will allow them to trade profitability,” he said.

THE COVID-19 IMPACT ON THE ECONOMY

Gold Coast Central Chamber of Commerce President Martin Hall. Picture: Richard Gosling

“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.

Gold Coast businesses fear they will fail within a year.

CCIQ economist Jack Baxter said, the forecasted trends were well-short of a full recovery.

“The results of the latest survey show businesses feel the recovery being experienced to date will be as good as it gets if there are no changes to current operating conditions,” he said.

“Many small businesses are still experiencing a stimulus-driven recovery in sales and revenue, but ongoing restrictions are constraining their ability to manage costs and boost profitability.

“One-half of respondents indicated their profitability continues to decline, despite a sharp improvement being recorded across the performance and cost indicators as business re-open.”

Mr Baxter said the planned end of stimulus measures including JobKeeper in March provoked enormous anxiety in operators.

“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 indicating they are unsure of their ability to operate beyond 12-months without support, especially if current restrictions are not lifted.