COVID-19 impacts on Pacific businesses have remained at severe levels.
The 15 Pacific Trade Invest (PTI) Pacific Business Monitor reports that sentiments among the Pacific business decision-makers remain critical and expected timelines for economic recovery are shifting back.
The recent July survey reinforced this ongoing severity with 84 per cent of respondents reporting a negative impact
Of Pacific respondents 33 per cent were from the tourism industry, 21 per cent were from the agricultural, forestry and fishing industry and 10 per cent were from the manufacturing industry.
Compounding the consistent pressures of COVID-19’s impact on Pacific businesses, the expected road to recovery has continued to lengthen.
The July survey found that 26 per cent of Pacific businesses do not expect a return to business as usual until 2023 or later.
This comes in stark contrast to responses from a year ago, where over 42 per cent of respondents expected a return to pre-COVID levels by the end of 2021.
Despite ongoing adverse impacts and delayed recovery expectations, the July survey showed stability in optimism among the majority of respondents with 70 per cent of Pacific businesses confident their business will survive the COVID-19 crisis, compared to 69 per cent last wave.
In line with this resilient outlook, the negative toll on mental health amongst Pacific business decision-makers has decreased significantly, from 65 per cent last wave to 53 per cent, the lowest level reported since tracking began.
Caleb Jarvis, PTI Australia’s Trade and Investment Commissioner noted that despite the continued impact of COVID-19 on the Pacific business owners, considerable resilience continues to be demonstrated.
“The prolonged duration of the pandemic coupled with the resurgence of COVID cases in both Australia and several Pacific countries has taken an overwhelming toll on the business community.
“As we fast approach the 18-month mark since borders first began to close, we look to the global community to provide the respite and response needed to ensure the survival of so many Pacific enterprises. The purpose of this data is highlight quantifiable feedback on where assistance is most needed, such as access to finance, new markets, e-business opportunities and cheaper freight options, and to encourage collaborative solution-based innovation.”
To support Pacific exporters in the wake of COVID-19, PTI Australia launched the COVID-19 Freight Assistance Package in late 2020, as an extension of work being done by the Pacific Islands Forum Secretariat. This would provide tangible relief to businesses during the unprecedented pressures the COVID-19 economic crisis has presented.
The Package has now seen over 40 successful applicants receive the monetary grant.