BASSETERRE, St. Kitts – Many locals watched on as the US economy plummeted and caused havoc with citizens’ livelihoods; however the impact has seeped into the local economy and is having devastating effects on the business sector.
A number of store owners have employed countless strategies in a desperate attempt to make money amid the bleak economic situation. Many have taken their products out of the stores and onto the streets in an effort to catch passersby who have stopped coming in to browse.
Others have announced major price cuts on merchandise, and sales on products and services. It was also noted that many individuals have resorted to selling from car trunks and other mobile units as maintaining rent payments has grown to be an onerous task. Meanwhile a small number of salespersons and business owners have simply accepted their business’ gloomy fate and shut up shop.
SKNVibes interviewed about 30 business owners around Basseterre, concentrating on how they have been affected by the economic slowdown. The majority of clothes and accessories outlets are “feeling the pressure” as many storekeepers acknowledge that in such difficult times, many persons strike clothing from their budgets. Other small businesses which would normally only offer one service have considered expanding their scope to have a greater possible yield now that people are spending substantially less on non-essential items.
Food vendors and fast food operators have noted that although it is expected for people to buy food, despite financial difficulties, there has been a significant slowdown in sales as more persons are experiencing reduced disposable income.
According to Director of Manufacturing Division of the St. Kitts-Nevis Chamber of Industry and Commerce Carol Evelyn, the problems may intensify over the next few months and stressed that it may take an entire year before recognizable economic progress begins to “trickle back to where it was”.
“We have seen the reduction in our orders and we have responded in lay-offs based on the forecast for the first and second quarters for 2009. Some factories have been holding out, but if things get worse, then we may have further layoffs. All companies would like to hold on to base workers but the crisis is affecting us in ways we did not plan for.”
Chairman of the Hotel and Tourism Authority Michael Head projected similar worsening for the hotel and service industry. He said, “Obviously occupancy rates are way down from last year by 30-40 % which has a pretty nasty knock-on effect on the economy. I don’t even want to think about how it will be for the next season.
“The main response has been layoffs but I think we need to market heavily in traditional market places and we must look into extending our traditional markets by looking at connecting flights into US, UK and Canada. One hopes for no more layoffs and although I do not envisage any hotel being closed due to the crisis, there are many potential problems.”
With the desperate fight by businesses to make ends meet along with the skyrocketing unemployment rate, the domestic economy is slowly making a downward spiral as the global crisis persists.
However, many of the businesses owners were unaware of the extent of the international situation and the possible effects it may have on them. And although projections into the next 18 months present an even more dismal outlook, a number of store owners remain optimistic and stress that they are not, in any way, going to be affected.
