Around 48% businesses surveyed in Pacific Island countries, including Tonga, expect to start returning to business as usual in 2021 or later, according to the Pacific Trade Investment (PTI), after a small sampling.

The survey, which looks at the impact CoViD-19 is having on businesses, was organised by the PTI and completed online by only 157 businesses from a wide selection of industry sectors in 16 Pacific Forum countries, between 18-24 May.

In Tonga, 66% of businesses surveyed expected to start returning to pre CoViD-19 levels from 2021 onwards, with 28% unsure, while only 6% expected to start earlier in the fourth quarter this year.

some 50% of businesses reported they were confident of surviving after CoViD-19 although 81% reported a massive decline in revenue.

To lessen the cost or damage to businesses during the outbreak, 59% reported reducing staff numbers, 53% reduced working hours, 53% reduced other operational costs, and 38% reduced staff wages

In addition, 28% diversified their products or services, 13% turned towards operating more online, while 22% requested rent relief, with 6% taking no action.

However, half of the businesses in Tonga surveyed reported barriers that were stopping them from implementing initiatives to support their businesses. These include a closed border, lockdown, lack of government support or stimulus, and lack of finance.

The major challenge faced by these businesses is not knowing how long the crisis will last.

The survey also revealed that 60% of businesses in Tonga were not satisfied with government’s support, although 41% reported they received some support, 25% said they will require support, 13% said government did not provide any support to their businesses, while 16% did not need support.

Well-being

The impact CoViD-19 has on the personal well-being and mental health of business decision makers was also part of the survey.

The survey reported 97% of Tongan businesses thought the virus had a very negative impact on their communities, and 97% reported a negative impact on their personal financial situation. While 76% reported a negative impact on their mental health.

Businesses were also asked to rate how they felt during the two weeks prior to the survey.

In Tonga, 44% reported they were sometimes worried, 25% were worried most of the time and 19% were always worried.

While 38% were sometimes angry, 6% most of the time and 3% were always angry.

However, 58% were sometimes optimistic, 25% were optimistic most of the time, and 3% were always optimistic.

And 47% were sometimes happy, 31% were happy most of the time and 6% were always happy.

The survey results are part of the first wave of the PTI's Pacific Business Monitor program.

To understand the continuing effects of CoViD-19 on the Pacific’s private sector, the PTI has commissioned Fifth Quadrant, an independent research agency to run fortnightly surveys.

It aims to provide data to governments, donors, and stakeholders on how businesses in the Pacific are doing.

The PTI Network is an agency of the Pacific Islands Forum Secretariat and is the Pacific’s leading trade and investment promotion agency.