File photo of an area of downtown Lethbridge (Photo: Lethbridge News Now)

By Justin Goulet

Survey results reveal 51% of local businesses have reduced staff due to COVID-19

Apr 24, 2020 | 12:24 PM

LETHBRIDGE, AB – The Lethbridge Region Economic Recovery Task Force has released the results of a survey focused on local businesses.

It took a look at how regional businesses have been impacted by the COVID-19 pandemic. 256 businesses responded, with 182 of those located directly in Lethbridge and the remaining 74 based within the region, but outside of the city.

Task force member and CEO of Economic Development Lethbridge, Trevor Lewington, said the health crisis has had a significant impact on the economy.

Some of the key findings of the survey are:

· 51% of local businesses have seen a reduction in staff.

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

· 78% have seen a decline in sales.

· 41% said they could not survive more than three months in the current climate without additional support.

“There’s reduction in business hours, and many of them have been forced to close as a result of public health measures,” Lewington said.

“What’s happening in Lethbridge is very similar to the stories we’re seeing across the whole country and various parts of the world.”

Some of the statistics from the survey results (Courtesy Economic Development Lethbridge)

Lewington said there have been some program implemented by government that have helped out the local business sector.

“The programs that businesses have referenced as being most helpful to them at this point are things like GST remittance deferrals, federal wage subsidies, [and] WCB premium deferrals. Things that are putting cash and revenues back into the hands of businesses are the things that are having the biggest impacts,” he noted.

“Programs that were referenced as being least helpful are things like Work Sharing or the Business Credit Availability Program.”

Lewington said some businesses have seen what he referred to as ‘neutral sales’, and there’s a very small percentage, ‘less than five percent’, of businesses that have seen an increase in sales.

“I would imagine some of those might be the professional services like accountants, lawyers and folks like that, but the vast majority of businesses have been negatively impacted,” he said.

He listed some of the sectors most impacted by COVID-19.

“Hospitality and tourism has suffered significantly. We’ve seen hotel vacancies skyrocket, there’s not a lot of activity with travel bans, lack of flights and border closures. We can expect the hospitality sector to continue to struggle,” he said.

Businesses outside of the hospitality and tourism sector hit by the pandemic include personal service outlets such as estheticians, massage therapists and restaurants that rely on dine-in service.

“Anything that has that personal relationship or that close contact is going to be impacted, and for the foreseeable future,” he stated.

Lewington said until we know what the provincial government’s relaunch plan is, it’s very difficult to say how and when businesses will recover from the economic hit and reopen to the public.

“As we look at the summer season being limited on events, even if businesses are allowed to open, the time for them to get their sales back and get their customers back – it’s going to be pretty significant right through the rest of the year, I would imagine.”

WHOOP-UP DAYS

On Friday morning, Exhibition Park announced the cancellation of the 2020 Whoop-Up Days event in Lethbridge. The announcement came after the province said on Thursday that mass gathering restrictions that prohibit gatherings of more than 15 people apply to all summer events and festivals.

READ MORE: Whoop-Up Days cancelled, Farmers’ Market might still be good to go

Lewington said Whop-Up Days is a big draw to the city.

“It’s [event cancellations] just going to continue to hurt hotels, restaurants and other businesses. The impacts will continue through the summer, even if we do see some of those restrictions lifted in other areas or other businesses are able to reopen – the impacts from large events and gatherings being cancelled is gonna bite, I think,” he said.

RENT RELIEF

Lewington added that he was pleased to see Prime Minister Justin Trudeau’s announcement of the commercial rent supplement program on Friday morning.

READ MORE: Trudeau unveils rent relief for small businesses hurt by COVID-19

“[That] should help put money back into the hands of business, so that business can continue to pay people to do what they need to do,” he said.

“The federal government has had the [Canada] Emergency Wage Subsidy program in place for a while and the details are starting to emerge that provide that 75 percent. After labour, typically rent and the physical property is one of the larger costs for businesses. So, we see that as the government sort of addressing the big priority spend items for people.”