Businesses out west in a tailspin from COVID-19’s sting
Published:Sunday | May 17, 2020 | 9:18 AMMark Titus/ Gleaner Writer
WESTERN BUREAU:
While some business operators in western Jamaica are praying for a return to normality in short order, amid the economic devastation caused by the COVID-19 pandemic, others are seeking out creative ways to trade to survive.
The western region, in particular Montego Bay, is considered the services hub of the Caribbean and the home to a raft of leading international brands in the business process outsourcing (BPO) and tourism sectors.
However, the emergence of the dreaded virus has brought tourism to a grinding halt, forcing hundreds of tourism workers out of their jobs. The outsourcing sector, which provides over 40, 000 jobs, has also been decimated by the pandemic.
“Operators with direct business in the tourism industry have lost 100 per cent of the earnings they use to get before COVID-19. And with Montego Bay being the tourism capital, by now you know the majority of people who do business within the sector are literally out of pocket,” said Janet Silvera, president of the Montego Bay Chamber of Commerce and Industry. “Those who have real estate (or are landlords) have been forced to cut their rent by 50 per cent.”
“Transportation, restaurants, craft, and in bond merchants are trying to stay afloat,” continued Silvera. “Overall, business operators are anxious to see the back of COVID-19 and the return to normality.”
Yet, several members of the commercial community are employing innovative ways to meet the demands of their client base, who are now forced to survive on a reduced budget. This includes Caribbean Producers Jamaica Limited, with their igloo box sales, and Rainforest Seafoods Mother’s Day package of oxtail, shrimp, and fish.
Gare Whittaker, president of the Hanover Chamber of Commerce, is still basking in the fact that his parish continues to be in the zero column of coronavirus infections in Jamaica, but says sales have plunged by more than 60 per cent for most businesses in the parish.
“One thing I must say is that, as bad as things appear now, we all anticipate that it will eventually get better, as to when is the big question, but the hope is that it will go as quickly as it came on, but I am actually preparing for it to be a little bit longer,” said Whittaker.
Not optimistic
According to Whittaker, the Hanover economy is dependent on the tourism dollar, which employs close to 40 per cent of the local working class, but with the hospitality industry likely to be out for another six months to a year, the chamber boss is not too optimistic.
When contacted, Richard Wallace, president of the Negril Chamber, told The Gleaner that Negril’s businesses have been devastated by the pandemic.
“Most businesses, not just hotels, are closed since the pandemic started, thousands of people have been sent home,” said Wallace. “The only businesses open are banks, supermarkets, grocery stores, gas stations, doctors’ offices, pharmacies, and their opening hours are reduced.”
“Many of us are now looking ahead to what the new normal will be in the tourism industry and are planning to adapt our businesses to that, but that is going to require more investment in our businesses,” continued Wallace.
“Low-interest loans would be a good start, many will need capital to reopen …. one or two per cent,” added Wallace, in reference to the kind of support he is hoping to see his members get.
While business owners in Westmoreland are expressing similar sentiments to their Hanover counterparts, in Trelawny, the banking sector seems troubled by what is unfolding. Banker Kelvin Hall, who manages the National Commercial Bank’s (NCB) Falmouth branch, says there is a general downturn in the operations at the bank.
“COVID-19 has affected deposits and business generally,” said Hall. “The hotels have laid off staff, the restaurants and bars are closed. No salaries are being deposited … we are encouraging online transactions to encourage the social-distancing protocol.”
For Custos Rotulorum of Trelawny Paul Muschett, COVID-19 has changed how businesses operate in the parish, and he is hoping that businesses will be able to adjust.