Coronavirus Gold Coast: How badly COVID-19 pandemic has hit businesses

A new survey has revealed just how devastating the COVID-19 pandemic has been for Gold Coast businesses.

A NEW survey has revealed just how deeply the COVID-19 pandemic has hit struggling Gold Coast businesses in the past three months.

More than 200 people weighed in on the Regional Development Australia (RDA) Gold Coast business impact and information survey, which was released this morning.

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Business has had to change dramatically as result of the pandemic.

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According to RDA, the comprehensive survey was undertaken to gain real time insights regarding the impact of the pandemic on Gold Coast businesses.

Among its key finding was that 92 per cent of businesses have been impacted by the pandemic, with this including not being paid on time for completed work, reduced demand for services, the closure of other businesses meaning there were fewer orders and future work coming in and delays in getting materials.

They also noticed higher staffing costs to split workforces and create social distance, less

efficiency, less customers, uncertain economic future affecting staff morale and difficulties travelling to remote client sites.

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COVID-19 has had a serious impact on the economy.

The report said these issues were reflected in lower financial and cashflow performance.

Other findings include:

• 94 per cent of all organisations have initiated remote working practices.

• More than half have reduced their in-office staff by more than 50 per cent.

• 63 per cent of respondents have been working from home since the end of March.

• Nearly one in four has the entirety of their staff working remotely.

Gold Coast businesses have felt the financial pinch of COVID-19.

It also shows the significant impact of the Federal Government’s stimulus packages, including the JobKeeper program which was introduced as an emergency measure to allow businesses to keep staff paid through the crisis.

The Federal Government programs businesses are accessing include:

• JobKeeper – 58 per cent, though it notes others wanted to access it but were not eligible.

• Boosting Cash Flow for Employers – 30 per cent.

• Temporary Relief for Financially Distressed Businesses – 5 per cent.

• Instant Asset Write-Off – 9 per cent,

• Backing Business Investment – 1 per cent.

• Supporting Apprentices and Trainees – 7 per cent.

• Support for Coronavirus-affected Regions and Communities – 5 per cent.

• Supporting the Flow of Credit – 5 per cent.

Gold Coast business leaders have urged the Morrison Government against an early end to JobKeeper, saying it would have a devastating impact on the sector.

The report said the Gold Coast had adapted rapidly to the changed situation.

The Gold Coast was praised for its versatility in the report. Picture: Jerad Williams

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“The impacts on businesses due to the necessity of lockdown, social isolation and

government restrictions have impacted negatively on businesses, community

organisations and manufacturers,” the report said.

“The unprecedented environment meant that businesses and industries had to pivot and respond to the changing environment in order to make their businesses more efficient, productive and sustainable into the future.

“Tourism is a major economic driver for the Gold Coast, so the impact of the closure of the

Queensland borders, cessation of international flights and the government regulations had

an immediate impact on the region.

“The versatility of Gold Coast businesses to diversify to keep their businesses afloat and

employees in a job has been very encouraging.”

Originally published as Coronavirus Gold Coast: How badly COVID-19 pandemic has hit businesses