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What has been the socioeconomic impact of COVID-19 in the Marina Alta?

May 22 from 2020 - 13: 10

The first report on the Socioeconomic Impact of Covid-19 in the Marina Alta is now available through the Marina Alta Observatory, this report can be accessed through the Sector Reports page of the observer page or you can consult it here :Socioeconomic Impact of the Covid-19 to the Marina Alta - April_Maig 2020

This report is the first of several that are intended to be carried out throughout this exceptional situation in order to assess the real impact of the crisis in the short, medium and long term of COVID-19 on the business fabric and on society in general. , from the Marina Alta.

In this first study, the changes and immediate consequences that this new situation has generated in the business and commercial fabric of the region are analyzed from the declaration of the State of Alarm until the end of Phase 0 of the Descaling.

All the information gathered through these studies will serve to reorient the actions of promotion of local development and the activity in the region that it carries out. CREAMA as technical secretary of PACTE'MA, within the Marina Alta Strategy project, subsidized by the GVA through Labora.

In order to obtain results, an online methodology was chosen through a web link to a form that was sent to participating companies through the different local development agencies belonging to CREAMA and the different business associations of the Marina Alta. , which has made it possible to achieve a high level of significance and representativeness.

It is important to locate the time frame of this investigation, which was concentrated in the last 2 weeks before entering Phase 1 of the de-escalation, when the first relaxation of measures had not yet been implemented.
of the Alarm State.

Bearing this premise in mind, we can highlight a series of relevant considerations that will help define more adjusted and effective economic recovery strategies. So, we have to 9 out of 10 companies in the Marina Alta have been affected by the situation caused by Covid-19, mainly in the reduction of sales and income derived from the paralysis of economic activity. Only 5% state that it has not affected them significantly, while 3% have seen an improvement in their activity.

In fact, practically half of the sample claims to have had to completely stop their activity, as well as more than 1 out of 4 has done an ERTE, either partial or total. 70% have made some change in the development of their economic activity, mainly, adopting preventive health measures, implementing telework, reducing or making working hours more flexible or adapting their business to non-contact methodologies.

Although in the vast majority of cases, the option of Teleworking it is not possible due to the activity of the company or trade, 8 out of 10 companies with possibilities of implementing it, have done so and in the vast majority there have been no notable problems.

The business sector is more critical of the management of the crisis carried out by state and regional institutions than by that carried out by the City Councils; however, only half of the sample acknowledges knowing any measure provided by the municipal entities.

Thus, more than half of the sample states that it is difficult or very difficult for them to access and / or understand the different regulations that are being published by these entities. Regarding the current moment, the business and commercial fabric demands, to a greater extent, aid in the implementation of the required health and safety measures, financial aid –either in public aid, or in accessible bank financing-, flexibility in the payment of taxes, or programs that promote the activity.

Looking to the future, the vision is pessimistic and coincides in the same problems related to the economic viability of the company or business that already exist at the moment - reduction of sales / income, stoppage of activity / closure of the business, and liquidity problems. In the effects on the labor market, a negative forecast is also emphasized with the destruction of jobs or, at best, the non-creation of employment, highlighting, above all, the difficulty in complying with the payment of wages.

Finally, for a speedy recovery of economic activity, it is requested, among others, effective public aid that reaches everyone, forgive or soften taxes, more information against society's fear of Covid-19, supply of sanitary material to reactivate the activity and promotion of local consumption and tourism.

These are the main conclusions that are drawn from the opinions and data collected in this first investigation on the socioeconomic impact of the crisis caused by the Covid-19 pandemic in our territory.

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