COVID-19 UPDATE: The Federal government has issued a ban on non-essential indoor gatherings of more than 100 people, in its latest initiative to curb the spread of the disease
The announcement is expected to impact the business of hospitality nationally, although smaller, regional and suburban pubs stand to fare better than many other businesses. There are already some indications local-oriented hotels are becoming the preferred choice of people avoiding large crowds.
“There’s no doubt this ban on more than 100 people gathering in venues will have a devastating impact on our workforce of more than 250,000 and will also impact our millions of patrons across Australia,” offered AHA National CEO Stephen Ferguson in a statement today by the Association.
The reality of the outbreak seemed to hit home for Australians on Friday the 13th, and that day Broadsheet sent a questionnaire to hundreds of hospitality businesses asking how they are being impacted.
A total of 363 responses were received, from fine-dining restaurants to classic pubs, providing a snapshot at this point in the unfolding of the phenomenon.
Some respondents offered that they thought they should close, but cannot afford to do so and are at the mercy of mandatory decrees. Others speak of the complete loss of their patrons as people flock to working from home.
Many thought there will need to be more support from government, with suggestions of lowering or amnesty on business tax, and temporary lowering of award wages to allow employers to retain staff.
The survey found 31 per cent of hospitality businesses predict they won’t survive more than three months if the crisis continues. Around 19 per cent believe they won’t last one month.
“There is no way we can afford to close for weeks or anything similar, this will sink our business,” offered one response.
Further to the Irish government’s decision to close all pubs across the land two days before St. Patrick’s Day, as of yesterday the US authorities are recommending cancellation of gatherings of 10 or more people.
The Culinary Union in the US, with 60,000 members, reported to AFP it is negotiating to ensure all workers – contract or otherwise – should be paid while businesses are closed.
Businesses are well advised to remain focused on key priorities:
- Survival: decisive measures will be required to ensure the business is intact beyond the immediate crisis, but strive to not make ‘reactive’ decisions
- Cashflow and balance sheet: prudent conversations with creditors and financial obligations are well advised, particularly if cash reserves are insufficient to cover at least a few months outgoings
- People: it will likely become clear which staff and business partners are truly assets. Focus on helping them through even if at the expense of some others. In the end a bankrupt business employs no-one
Even before the virus has caused widespread health consequences in Australia, the economic injuries are cutting swift and deep.
Industry is calling for greater measures to distribute the economic burden, for the good of the whole. This could take the form of relaxed or renegotiated obligations to landlords and/or financial institutions during the downturn.
The AHA continues to seek clarification on the exact details of the 100-person restriction in venues, including whether this applies to the entire premise or by section within the venue, but Ferguson offers that hotels “are resilient” and will be on the front of the upswing too.
“Pubs are a vital part of society and will be key component in Australia’s employment and social recovery once we get through this difficult time.”
QUESTIONS AND ANSWERS
When is it contagious?
The latest from the World Health Organisation is that ‘pre-symptomatic transmission’ is less of a factor in COVID-19 than previously thought, and notably, it does not spread as fast as influenza.
However, at least one study out of China has found people may be contagious for several weeks – even after they have recovered. This has not yet been confirmed as a risk.
Self-Isolating
Anyone showing symptoms that fears they may have been exposed to the disease is recommended to self-isolate, unless symptoms are severe enough to require seeking medical assistance, which they should do immediately.
People self-isolating should avoid contact with others, and wear a surgical mask when in proximity to other people, to reduce the chance of shedding contaminants.
How long will the crisis continue?
No-one knows exactly how long the pandemic will last at this stage, as too many of the questions surrounding rate of spread and progress on treatment remain unanswered.
Prime Minister Morrison recommends Australians brace for disruption to normal life for six months.
Can you get it again?
There have been some reports out of China and Japan of people contracting the virus a second time, but there are not yet widespread reports of this and medical experts say it is too early to say for certain either way.
INDUSTRY UPDATES
St. Patrick’s Day yesterday saw thousands of poker machines switched off and casinos deserted as Las Vegas shut the doors.
This followed the move by sister mecca Atlantic City, which on Monday ordered its nine casinos closed.
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Also out of Vegas, the UFC has announced its office closed, effective immediately, and fights postponed until at least 31 March.