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Home / Business / Companies / Retail

Covid 19 coronavirus: Auckland CBD shut-down could cost businesses more than $10 million

Jamie Gray
By Jamie Gray
Business Reporter·NZ Herald·
13 Nov, 2020 04:34 AM3 mins to read

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Just one day of Covid-19 restrictions can cost Auckland CBD businesses more than $10m. Photo / Michael Craig

Just one day of Covid-19 restrictions can cost Auckland CBD businesses more than $10m. Photo / Michael Craig

Today's "stay at home" Covid-19 message for Auckland workers could cost inner-city businesses more than $10 million, the Chamber of Commerce predicts.

Auckland is home to 34 cent of the country's population, and is responsible for about 40 per cent of the tax take and GDP, according to Auckland Council data.

Michael Barnett, chief executive of the Auckland Chamber of Commerce, said today's measures meant about 100,000 people stayed away from the CBD.

"It's got to be in excess of $10m a day when you look at the loss of retail, the loss of people coming in to town," he said.

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Just one day of Covid-19 restrictions can cost Auckland CBD businesses more than $10m. Photo / Michael Craig
Just one day of Covid-19 restrictions can cost Auckland CBD businesses more than $10m. Photo / Michael Craig

"On top of that, you have the lost productivity of businesses that are having to change the way they operate," he told the Herald.

"The third thing is that they have the uncertainty that is instilled in businesses who are asking if they should bring in stock for the weekend, stock for restaurants and so on," Barnett said.

"The repercussions of this, even if it's just for 24 hours, are still greater than what happens on the day," he said.

Barnett said the Government may look at "hyper-localising" its response to future cases of community transmission of Covid-19.

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"That means putting a ring around an area and hitting it hard," he said.

"I don't think we will see those widespread regional lockdowns but I can see us hyper-localising and being intense about the way that we operate," Barnett said.

"It would send a message to employees and employers about the necessities of QR codes and the need stay at home if people are unwell," he said.

Today's Covid-19 measures have poured cold water on those businesses planning a marketing ploy out of today's date: Friday the 13th.

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Computer store PB Tech was forced to postpone its New Zealand-wide promotion because of today's Covid-19 restrictions.

The Government said this afternoon that the latest case of Covid-19 had been genomically linked to the Defence Force cluster and there are no new community cases.

New Zealand would remain at alert level 1 and Auckland's CBD will re-open, Covid-19 Response Minister Chris Hipkins said.

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