COVID-19 ruins Dominica's businesses

Businesses in Dominica have lost more than EC$19.5 million due to the COVID-19 pandemic, a survey by the Dominica Association of Industry and Commerce (DAIC) has revealed.

The survey was conducted from April 16-23, 2020 among members of the DAIC "to determine the impact of COVID-19 on employment and revenues and to use the data from this survey to support solutions to mitigate the impact of COVID-19 on the" private sector, the DAIC said in a 21-page summary.

What were the main findings?

• Of the 174 respondents, it was indicated that 31% of their employees were laid-off due to COVID-19. From this 31%, 55% of these employees are full-time, 33% are part-time, 8% are seasonal and 3% are contracted employees.

• It was also realized that on average, there was a reduction in businesses monthly wage bill as a result of layoffs by 37%.

• 59% of businesses regularly contribute to the Dominica Social Security while 41% do not contribute.

• The respondents estimated a decline in revenues by 35.6% for 2020 as a result of COVID-19.

• Total Estimated Revenues for 2019 from the 174 respondents amounted to $54,934,133 whilst their estimated total revenue loss for 2020 as a result of COVID-19 is $19,538,946.

• Additionally, the expense incurred as a result of COVID-19 is estimated at $638,178.

• 32.5% of the businesses have reduced hours of operations in order to mitigate the number of employees being laid-off. 26% of employers have requested that employees take vacation without pay whilst 11% have requested that employees take paid vacation leave.

• Additionally, 16.5% of employers are operating remotely.

• 29.7% of the businesses who responded have had a rainy fund that they could utilize to minimize disruptions to their business. As it relates to insurance to minimize disruptions, 15.2% of the businesses have been self-insured, whilst 2.9% have had business continuity insurance and 0.7% havehad other insurance plans to minimize disruptions to their business.