Calls for Govt to ease restrictions and help struggling businesses [1]
Wednesday, April 29, 2020 - 18:57. Updated on Thursday, April 30, 2020 - 09:14.
The Tonga Chamber of Commerce and Industries (TCCI) is calling on the Tongan Government to ease restrictions and provide financial support urgently, to help struggling businesses continue operating.
Business owners and managers raised concerns today over the negative impacts the continued restrictions are having on their businesses.
Since Tonga’s borders closed due to the CoViD-19 pandemic, the lockdown was followed by Severe Tropical Cyclone Harold. With the current restrictions kept in place, many businesses have had to let go of staff, and reduce work hours. Some businesses have shut down completely. The impact is much more evident in the tourism sector and businesses related to it as well as the aviation sector.
Although the government is providing assistance through a COVID-19 Business Economic Emergency Relief Fund, and allowing duty free and CT free imports of building materials as well as other incentives, TCCI says more needs to be done to keep businesses operating, particularly in the short term.
Assist businesses
TCCI President Paula Taumoepeau said while they support closing the borders to keep CoViD-19 out of the country, he urged government to “look deeper in to what it’s doing to help to assist businesses”.
“The private sector is the engine of economic growth, it’s where the jobs are. Businesses need to continue. It’s a must. It is important to provide support to businesses to keep them going so people can still work to keep the economy going.”
He suggested government should focus on bringing forward approved aid construction projects to try and get more cash flow coming into businesses “because we need it”.
Billfish Bar and Restaurant owner, Robert Sullivan, thinks the restrictions should be eased.
Trade while we can
“Right now, in the kingdom with no virus, we believe it should be allowed to let people move around, spend what they can, while we can, because when it [CoViD-19] does come here, we will be locked down completely,” said Robert.
He stressed people will continue to lose jobs if restrictions continue and that the general tourism sector, bars and restaurants are struggling very hard right now.
Liz Cowley Sullivan, who owns and runs Waterfront Lodge and Restaurant, believes this is a time when we need to start supporting each other.
“Currently it’s very sad out there. And we don’t want to lose our staff because they are like our family.”
Aviation sector
Tevita Palu, owner of Palu Aviation Services Group of Companies which includes Real Tonga Airlines, travel agencies, freight forwarding services, and aircraft maintenance support, said his businesses are suffering as they are directly connected to the closing of the border.
“When it was confirmed the international border would be closed, it automatically reduced cash flow to the airline by 70%.”
But then when the domestic service was stopped, he said there was no cashflow for the airline. To date, Tevita has let go of around 150 employees. “That’s a lot and it’s difficult.”
For the time being, Real Tonga is operating domestically on a limited basis with one flight only to Ha'apai, Vava'u and back to Tongatapu. This is much less compared to normal operations, which saw them fly four times to Vava'u, three flights to Ha'apai, and two or three flights to 'Eua.
Besides CoViD-19 affecting businesses, Tevita has to contend with another issue. He said the government advised him last Friday they are starting up a national airline.
“I don’t know what the rationale is behind this move. But we ask for support at this time. We need the support. And I would like the opportunity to speak to the Tongan Government about this.”
Government financial support
Meanwhile, Government has not yet indicated when financial support might be provided to businesses.
However, local registered businesses have until 1 May to apply for assistance, under the COVID-19 Business Economic Emergency Relief Fund.
The fund applies to registered businesses affected by the virus from January to March this year.
It aims to provide economic relief assistance, encourage business continuity plan and support recovery of local businesses in the formal and informal sectors that are affected by COVID-19.
The current restrictions include:
- A national curfew from 9pm to 5am
- Funerals allowed 20 people indoors and 40 outdoors with an authorised officer to be present throughout.
- Liquor licensed night clubs, clubs, bars and kava clubs shall be closed.
- Church services and church events allowed on Sundays only, with Seventh Day Adventists allowed to gather from sunset on Saturday to sunset on Sunday.
- All events and gatherings such as bingo, sports clubs, gyms, sporting events and activities, celebration of birthdays, marriages and other recreational or related gatherings are prohibited.
- Practice social distancing of 1.5 metres from any person at all times, use protective clothing to minimize risk of infection