Issue link: https://maltatoday.uberflip.com/i/1250070
21.05.2020 8 OPINION T his week's announcement that restaurants will reo- pen on Friday and peo- ple may gather in groups of up to six, comes as welcome news to business in lockdown. Others to open are barbers and hairdressers as well as the resumption of non-contact sport. Why this sudden thawing of the lockdown? Health Minister Chris Fearne said that the risk of a tsunami overwhelming the health sys- tem had been managed and turned into a stream thanks to early action and hard work. He feels that Malta had man- aged to control the pandemic because the vulnerable and others stayed at home, while thousands of businesses were ordered to shut premises and offices. Most set up virtual working for white collar work- ers and to stay at home. Such businesses, have suf- fered losses and had to borrow from banks or use their own cash resources to finance wag- es while productivity suffered and regrettably some sales or- ders were cancelled. Last March, the government introduced a quarantine peri- od for all arrivals, effectively killing off the tourism indus- try. All flights were suspended bar those for repatriation and cargo deliveries. Least to say, that the worst hit were the hotels and food servic- ing sector (although they were the first to qualify for state sub- sidies). Now, closed for the past three months with zero reve- nue, MHRA the union for ho- tels and restaurants are warning that Armageddon will follow unless the airport is reopened. MHRA urged the govern- ment to steer towards reignit- ing the economy through the tourism sector whilst ensuring reasonable safety measures for staff, employees and residents. Quoting a recent EY report, it states "An economic recov- ery is realistically expected to take between three and four years". ere is a widespread belief that "aggressive rate cut- ting" in hotels will be adopt- ed in the coming months as a result of beds oversupply and low volume of tourists. Mean- while, in comments to Times of Malta, director-general of e Chamber of Commerce Kevin Borg said the members felt that "the country was at times given incomplete and non-assuring messages". Such inconsistencies occur when people were told that they could go shopping for non-essential items but were at the same time encouraged to stay indoors and apply strict social distancing rules. Such frenzied directions have hit the retail shops badly - they over-night had to set up pro- tective plastic barriers at their counters and only serve cus- tomers one at a time. e public in general is still fearful of going out even though there are others who abuse especially over the weekend when social distanc- ing is not strictly followed. Some offenders are worse than others, but no one can excuse them that they are not at risk of getting sick and/or dying from Corona. Malta has so far only suffered a small number of mortality cases. ere is a surreal feeling of AC (after Corona) meaning that as the authorities ease re- strictions, the young quickly forget the risks and venture out without following the WHO health warnings. We all have our coping mechanisms how to deal with Covid-19 mortality. Everyone wants to go to heaven but no- body wants to die. ere is a feeling of déjà vu in the air as people simply feel there is a limit to how much they are willing to sacrifice for the health of others, and that they have decided, on a per- sonal or societal level, that we have reached that limit of per- sonal sacrifice. One is conscious that Mal- ta is famed for its clear water blessed with well-kept sandy and rocky beaches. Now, with the airport closed such amenities are not shared with three million visitors - so this fact adds to their beauty. No beaches were officially closed but social distancing and wearing of masks is obligato- ry. Last weekend, beaches and public gardens were packed. As can be expected, school children being so nervous during the lockdown, (some cocooned in a small space in apartments for the entire week) are eager to venture out and meet their peers. Obvious- ly, this brings in the argument that parents are suffering from working at home and caring full time for their offspring. Most, are looking forward to flout the health warnings once the "R" factor drops closer to one. Quite a few are grudg- ingly speaking of the Corona experience as if it has stolen a good three months of "nor- mality". ey are fed up hearing about other countries fatali- ties and wish to move forward. is is wishful thinking as the stark facts are that the virus has not disappeared. No vaccine is yet fully test- ed and available overnight in millions of doses. Our Health Superintendent warns us to be cautious. ere are still peo- ple with the virus in hospitals, at home, and even walking around undiagnosed who will inevitably pass it on to others. As can be expected, the Health Ministry is saying it is too early to fully open the air- port, but other ministries are less sanguine. People are feel- ing the pinch of low incomes. Businesses are limping, bare- ly surviving in spite of govern- ment wage subsidies, as export orders are down. Professional firms are feeling the pinch of poor cash flow - the inevitable layoffs will follow unless lock- downs are eased. is fuels the underground economy. According to Eurostat, Mal- ta's shadow economy at about 24 per cent of GDP is one of the biggest in Europe – big- ger even than that of Italy and Greece. During hard times when un- employment is rising, it forc- es more people to work in the shadow economy, whether foreigners or locals. It is all very good to calm people say- ing that only through personal sacrifices and closure of major businesses that we can flatten the Covid 19 curve. We may have flattened the curve, but that came at a high cost. Doctors warn us that the curve will resume an upward climb unless we maintain vig- ilance. e trade-off with ob- serving health warnings or maintain our sanity and eco- nomic prosperity is a tough cookie. Ask anyone in the high-risk category, like pensioners and they agree to maintain the sta- tus quo - that is to be careful now, not less. With everyone else - the people are watching their prime minister telling them that he is well advised to carry out gradual easing of the lockdown. His golden words are - there must be a summer this year. e scenario is risky but poli- ticians want us to feel safe and relaxed. Perhaps, this throws caution to the wind as more feel less not more vulnerable than before. It does not help to hear that the "R" factor is less than three, because we all know how quickly the virus can spread. Doctors are reminding us that people can be asympto- matic carriers or only develop symptoms days or weeks after they contract the virus. Simply wearing a cotton mask (not an N95 type) does not shield us from COVID-19 but under false security wearers feel snug - they fail to comply with so- cial distancing rules. As a final word of caution, Malta moved up to the top twenty nations in the global world metre scale for COV- ID-19 cases, having twice the number of daily cases per pop- ulation when compared to Ita- ly, Spain and Germany. A Mazel Tov celebration is too early for us. Mazel Tov - the lockdown is thawing George Mangion George Mangion is a senior partner of an audit and consultancy firm, and has over 25 years experience in accounting, taxation, financial and consultancy services. His efforts have seen PKF being instrumental in establishing many companies in Malta and ensured PKF become one of the foremost professional financial service providers on the Island