Covid-19 pandemic, lockdown’s shocking effect on the Gold Coast’s small businesses
Stark new figures show just how much Gold Coast businesses have suffered during border closures, with many just about keeping their heads above water.
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Stark new figures show just how much Gold Coast businesses have suffered during border closures, with firms in the north of the city carrying the highest risk of default in Australia.
Data released by risk analysis firm CreditorWatch puts the northern Gold Coast joint top with Merrylands in Western Sydney as worst in the nation for default risk.
Coolangatta, which has been badly impacted by the border closure, was rated as fifth worst.
CreditorWatch spokesperson Michael Pollack said Gold Coast businesses had suffered lower revenue due to a lack of tourists caused by border closures, but their costs had continued to rise.
“It’s a kind of a double whammy in a way,” he said.
“Their rental costs have been maintained at high levels, whereas they’ve experienced this lack of income. They’re copping it from both sides.”
Mr Pollack said hospitality was worst affected, followed by arts and rectreation (which includes tourist attractions) and the education sector.
He said small businesses had found the last 12 months especially tough.
“For a small business, they’ve copped it pretty hard,” he said. “They traditionally don’t have high cash reserves like a larger business does.
“Once those cash reserves run out and they’re no longer getting jobkeeper or things like that, they find themselves in a pretty precarious situation.”
Small Business Association of Australia President Anne Nalder said many small businesses had this year been in “survival” mode.
“There are some businesses that have fared quite well,” she said.
“But generally speaking a majority of businesses would be surviving by the seat of their pants.
People are in a survival mode.”
Theodore MP Mark Boothman – whose electorate includes Helensvale, Oxenford and Upper Coomera – also said there had been a “two speed economy” on the Gold Coast, with some businesses barely surviving while others boomed.
“Many small businesses have expressed dismay at poor sales of products that normally would be in high demand this time of year,” Mr Boothman said.
“Darrell, who sells high quality seafood at the local Helensvale Farmers markets told me recently he is deeply concerned as sales are down. Normally at this time of year his orders for Christmas seafood would be booming.
“Local family-owned restaurants have noticed a slowdown as well. They fear for their financial viability if sales don’t return to normal.”
A lack of tourists has been particularly challenging for the northern Gold Coast’s theme parks, which are the biggest private sector employers in the area.
Chief Operating Officer of Movie World owner Village Roadshow Theme Parks, Bikash Randhawa, said with border reopening on Monday they could now look forward to a bumper Christmas season.
“After nearly two years, and what we all have gone through as a city, as businesses, as people that live and breathe tourism, this is now an opportunity for us to shine and do what we do best: to provide entertainment, provide tourism,” Mr Randhawa said.
“I cannot wait to welcome every single person from outside of Queensland back into our properties.”
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