kevon.felmine@guardian.co.tt
While Government commits to reopening more sectors of the economy as vaccinations against COVID-19 increase, some business owners are unsure whether they can reopen and, if they do, sustain their businesses.
Gyms, bars, casinos, cinemas, spas, salons and retail businesses have suffered significant losses. Nightclubs were closed for the past 15 months, while some others suffered three periods of shutdown due to Government-restrictions.
While COVID-19 claimed over 1,000 deaths, Rumours Sports Bar in San Fernando was one of its business casualties, closing after 13 years.
“I had no choice. I had to close it because the landlords wanted their rent, and I could not afford to pay. There was no cash flow, so I sold out all my stuff and used that money to cover my arrears,” owner Marc Sitaram told Guardian Media yesterday.
Sitaram said this was the case with several other bar owners, who suffered the direct effect of three closures of this sector. It is even harder for bar owners in Palo Seco and Santa Flora, where overall business activity has declined since the closure of Petrotrin in 2018.
Sherene Sanchez, the owner of Staggerin Bar, said most residents worked at Petrotrin, and since its closure, many struggled for work. Sanchez said that even when bars were open, the Government-mandated takeaway police significantly affected sales.
“My sales had dropped to $400 a day with that buy and go process. If your rent is $5,000 a month or you have workers and utilities to pay, you were not making money,” Sanchez said. She said that while Carib Brewery assisted bar owners by refunding them for drinks, many bars had cold stock and other items that would have expired. Sanchez tried to diversify by opening a spa, but that too closed at the end of April.
Both Sanchez and Sitaram feel that with vaccinations increasing, bars can operate safely. Sanchez said that she understands the seriousness of COVID-19 but believes that social distancing, restricting patrons from drinking at the counter, offering outdoor seating together with other public health measures can allow for a safe operation. Sitaram is unsure how quickly the sector can return to profitability.
“A lot of people might be sceptical. The youths will come out, but the more mature people may not with this virus still around.”
For Fareeza Manbodh, she expects slow business at her Zen Garden Spa, along Sutton Street, San Fernando, when this beauty sector reopens. Manbodh said that many people lost jobs, and some may not spend on items that were not considered essential. Nonetheless, she believes the authorities overlooked spas and saloons’ ability to operate safely.
“Even before COVID-19, I always practised safety for myself and clients. I sanitise myself and everything because it was part of my training. I even wore masks before this virus,” Manbodh said.
She said the past three months were tough for this sector as bills keep coming, but no one could generate an income.
“I am halfway vaccinated, and when fully vaccinated, I will be a little safer to operate. I already have my protocols in place. I operate by appointment, only one person comes in at a time, I sanitise from the washroom throughout, and I wait 30 minutes between clients.”
Chelsea Ramnarine Singh, director of Anand Low Price Group of Companies (ALPG), which owns a chain of supermarkets, restaurants, gyms and guest houses, says the continued closures are causing suffering in these business sectors.
File Photo: Workers at Royal Princes Casino, South Park, San Fernando, clean and sanitise the premises.
Kristian De Silva
ALPG’s Liv Nightlife was never allowed to reopen since March 2020. However, management transferred staff to other businesses within the Group. Ramnarine Singh said with the club and gyms still closed, they are is continuously looking to find innovative ways to survive.
However, she says it is time to reopen the economy, especially with the decrease in COVID-19 infections.
Ramnarine Singh recalled the large crowd gathering for South Park Mall’s hamper distribution, which Anand Low Price Supermarket was a partner. In the supermarkets, she said people were buying more frequently instead of monthly as they watch their finances even closer.
“We do think it is time for gyms to reopen because a lot of people are getting unfit and there is nowhere to exercise. Also, gyms are good for people’s mental health. However, I do not think there will be a huge rush when we reopen. It will be a place for people to be healthier and encourage increased activeness to help boost people’s immune systems in case they get the virus,” Ramnarine Singh said.
She said employees are getting vaccinated, and while they are not forcing anyone, the Group is encouraging vaccinations.
Chamber: Business will reduce staff
President of the Greater San Fernando Area Chamber of Commerce (GSFCC), Kiran Singh, said that while some businesses are ready to resume, they have already indicated that they will cut staff in half. Singh said businesses do not expect sales to boom in the short term, and whatever profits they make must be allocated wisely to cover all expenses incurred. He said they could only designate a small portion to workers’ salaries because big-ticket items such as rents and utility rates are just as important. Furthermore, over 50 per cent of GSFCC’s membership expressed concern that when Government finally gives the green light, they may not be able to resume. The extended periods of closure over the past 15 months have severely depleted their savings.
“Members can no longer financially support their furloughed staff as they had done during the first lockdown. While government support was evident, unfortunately, it was not sufficient to meet the basic needs of the many thousands of workers,” Singh said. Although all manufacturing companies were allowed to reopen last week, Singh said the sector has not yet experienced a return to 100 per cent production. A preliminary survey revealed that demand remains low for goods that comprise the non-essential sub-sector.
“Some factories, and by extension employment, continue to remain idle until such time that the retail sector is allowed to engage in commerce. For example, mattresses are manufactured locally, but with furniture stores remaining close, there is simply no demand for such products.” He said the restaurant industry is returning to some level of business activity. However, the main challenge faced by this sector is the continued closure of the retail businesses.
“Almost 100 per cent of food establishments within the street malls and mega-malls remain close. It is due primarily to the fact that retailers cannot open their doors. Thousands of employees within the restaurant sector remain forced to stay at home.” He said the money supply is severely stunted in the local economy and continues to have a negative multiplier effect. Meanwhile, retailers continue to plead with Government for ease of restrictions, especially as mass vaccination drives are currently underway.