In her response to comments by the Director of Commerce regarding assistance for businesses and private sector employees impacted by the Code Red shutdown, businesswoman Ella Gurr includes reports and data to support her position that small businesses are struggling, and need help,
One of the points that DOC Director Petti Matila made was that registered businesses in American increased.
Gurr however provided numbers on registered businesses beginning from 2015 to 2021 which showed the numbers going down each year. In 2015 there were 3,814 businesses but last year there were 2,435.
Registered Businesses Department of Commerce
- 2015 registered businesses – 3813
- 2016 registered businesses – 3037
- 2017 registered businesses – 2911
- 2018 registered businesses – 2858
- 2019 registered businesses – 2718
- 2021 registered businesses – 2435
The DOC Director had also pointed to the growth in Gross Domestic Product.
Mrs Gurr responded, “No doubt $131 + million federal stimulus funds along with key construction development contributed directly to the 4% increase in GDP in 2020.”
But she pointed out “….it is important to highlight pre-covid American Samoa was projected to show a straight 3 year (2019-2022) decrease in GDP by 3.5% in 2019, 1% in 2020, 2.3% in 2021 and 2% by 2022 per American Samoa Economic Forecast 2019. Historically, federal stimulus funds just masked or prolonged the real state and health of the economy due to lack of industry diversification outside of Starkist.”
Mrs Gurr added, “Under the previous administration many local businesses experienced temporary closures or restricted hours of operation from Mar 2020- May 2021 which were not lifted until 5 months after the current administration took office.”
She also noted that while the DOC Director claims she sent a request to the Chamber Feb 2022 for a Covid Impact Study, “I can confirm the previous Chamber board did not receive that request.”
“While I applaud Director Petti on initiating a Covid Impact Survey (2022) a year after being in directorship, the Chamber ran several Covid Impact Survey# in 2020 the first 6 months when the pandemic occurred and data was shared with the previous administration for financial assistance for local businesses.
Gurr provided the findings of the Chamber of Commerce 1st Covid Impact Survey completed in the first 3 months of the Covid pandemic in 2020:
- Total private sector revenues are estimated to be $132.0 million lower (-12.8%) in 2020 as a direct and indirect result of the pandemic.
- Total private sector employment is estimated to be 3.4% lower in 2020.
- Total private sector wages and salaries are estimated to be $3.4 million lower in 2020.
- Employers don’t seem to be cutting labor costs proportionate to their revenue losses,
which is not sustainable over the long-run. - Every industry that responded is expected to see decreased revenues this year.
- Retail trade and Administrative/support services are the only private sector industries
that are expected to increase employment in 2020.
