Port Vila businesses hit hard: 2,000 workers affected, 700 in urgent need

January 21, 2025 10:44 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara.

The Ministry of Tourism and Trade, operating under the Economic Sub-Committee led by the Ministry of Finance, is driving initiatives to ensure faster recovery and resilience following the recent earthquake. Their focus includes programmes designed to support affected businesses and workers, revitalising the economy in the process.

Director of the Department of Tourism (DoT), Paul Pio, revealed that over 600 companies are registered under the Port Vila Central Ward, collectively employing more than 6,000 workers. 

He mentioned the ministry’s coordination of a survey to assess the impact on tourism businesses and employees. The findings indicate that over 2,000 workers have been affected, with approximately 700 employees requiring immediate assistance due to business closures or major disruptions. The government is exploring assistance programmes to help revive these businesses and reintegrate affected workers.

To address damages in the Central Business District (CBD), the ministry is engaging with the private sector and insurance companies. Questions have arisen about the timeline for the demolition of damaged buildings, which is crucial for initiating a phased reopening of the CBD. The goal is to reactivate business activities progressively, facilitating economic recovery.

Representatives from the Vanuatu Chamber of Commerce and Industry (VCCI), present at the Recovery Operation Centre (ROC) on Monday, announced the commencement of an in-depth employment survey.

Conducted in partnership with the Department of Labour, the survey aims to quantify the number of affected businesses and employees, including cases of relocation, operational continuity, and closures. The data will inform decisions made under the Economic Sub-Committee regarding support for businesses and employees.

Director Pio commended the collaborative efforts across sectors, acknowledging the challenges involved in recovery work. 

He also noted that the ministry’s recovery programmes consider tailored stimulus measures suitable for Vanuatu’s unique context. 

 The DoT Director emphasised that recovering from an earthquake differs from recovering from cyclones, as aftershocks continue to cause physical and mental stress, requiring a more complex approach to recovery.

The proposed stimulus package includes potential subsidies and financial backing facilities, which are being developed with the support of development partners. 

Another initiative involves the temporary relocation of businesses from the CBD. In collaboration with the VCCI, the ministry is working on allocating space for impacted businesses to operate until permanent solutions are implemented and the CBD fully reopens.

Pio stressed the importance of these measures, stating that they are essential for achieving long-term recovery and rebuilding confidence in the business sector.