TROUBLE IN PARADISE

Another week locked up in our apartment due to the Covid 19 restrictions here in New Zealand.  One day seems to melt into the next, such that it’s almost tough remembering what day of the week it is.  At least I’ve had plenty of legal work to do to keep my mind occupied, mainly a lot a contract and real property issues.

Enjoyed the counsel received today from General Conference.  Our one diversion this week was yesterday Alisa  and I drove to Devonport where they have a large grocery store by the name of New World, and we were finally able to find donuts there to purchase as part of our family General Conference donuts tradition.  Otherwise, not much new to report here. 

So I thought I’d attach to this report an email from our local attorney in the small island nation of Vanuatu, which details the economic disaster going on there. 

“I wish to advise you about the situation in Vanuatu as seen by our office as I would assume that you have received some news from your members in Vanuatu.  It’s not looking too good here.

A Government State of Emergency is in place. The Borders/frontiers are totally closed, except for cargo freighters. No more cruise ships are coming. Air Vanuatu has cancelled all international flights till July. Qantas and Virgin have done the same.  Domestic flights to the outer islands are all cancelled. Domestic passenger shipping is suspended. Only cargo may be transported.

A 9pm curfew is in effect for everyone except “essential services.” Most hotels have closed or will close soon. Others have put their staff on forced annual leave, so they will receive some payment, thereafter,  most will probably be terminated.

Many hundreds of job losses across the board, some of them quite skilled and experienced positions. Buses and taxis are losing a huge amount of their tourist business.

Many expatriates left before the airport closure deadline the weekend before last. Many businesses are closing: shops, tour operators, car hire etc…

Kava bars are all ordered to close (only takeaway permitted).  These gathering places are numerous and very important socially to locals.

Basically, with no tourists in a country dependent on Tourism and related businesses for 50% – 60% of its GDP and most of its employment, these wholesale closures will wreak economic and social havoc. 

 It remains to be seen just how bad it will become, but many people walking away from tenancies and businesses with bank debt.  We expect with so many people employed in hotels, resorts, tour operators, bars, cafes, restaurants plus all the buses and taxis in town, that we will see unemployment in the 1000s - which is a lot for here, where the capital Port Vila has a population of only 55,000.

The sort of desperation this will create will not bode well for personal and household security.  With no welfare system available, and no established state structure to offer relief – most people in trouble – businesses or employees - will simply hit the wall. 

Yesterday, the Prime Minister offered businesses a financial “Stimulus Package” to try to encourage them to stay open, in order to preserve the jobs of thousands of locals. This will help some, but will probably not assist those who have already closed.  We expect some tough times ahead here, and probably for quite a while.

 All this is happening when we still do not have a single official case of Covid-19 in the country! Having said that, we also have no way of testing! We are so ill equipped in Vanuatu to handle a significant outbreak – of anything! - that we all hope and pray that such a thing does not happen. There are reportedly two ventilators in the hospital system here, and one isn’t working! The main hope – I can hardly call it a strategy! - for us all here is – don’t get sick!!

We understand that strict measures have been taken in  New Zealand. So we are all in this together. Very warm regards. Marie-Noëlle Ferrieux Patterson”

This is an example of what is happening everywhere.   It remains to be seen how this pandemic-caused economic collapse will affect the rest of the world, including NZ and the US.  Once the rubber band is stretched to its limit, I’m not sure how quickly it will snap back.  Yesterday on a walk I noticed a fine Italian restaurant called Porto Fino’s which we’ve visited a few times is completely cleaned out and obviously shut down permanently.  Stay tuned!