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Tasmanian economy flying high on paper but businesses fear it's all in the past

Shannon Ruffels says revenue at her pub  has slumped 90 per cent since the border reopened.  (ABC News: Maren Preuss )

As January comes to a close, earnings at go-karting business Hyperdrive are down about $200,000.

Co-owner David Cutcliffe said he believed Tasmanians were steering clear, in what was traditionally the business's busiest period, to avoid coronavirus.

"When the borders were closed we were actually really busy," Mr Cutcliffe said.

David Cutcliffe says his business was busier before the borders reopened.  (ABC News: Peter Curtis )

Retail, supermarket trips cut to avoid COVID

The Hobart venue is not alone.

The latest Google mobility data shows movement around retail and recreation spaces in Greater Hobart was down 20 per cent, and by 25 per cent in supermarkets and pharmacies, between mid-December to late January compared to pre-COVID levels.

Public transport use was down 24 per cent.

In the Launceston council area, retail and recreation declined 9 per cent and movement around supermarkets and pharmacies dropped 4 per cent in the same period.

Toast cafe's owner says some staff have left because they want more secure jobs.  (Supplied)

Paul Freeburn owns Toast cafe in the Launceston suburb of Prospect Vale and said his turnover had dropped about 40 per cent in the past month.

He blamed the state's mask mandate and called for greater state and federal government support for businesses like his.

"What is happening now is we're losing employees to go to a more stable industry," Mr Freeburn said.

"A staff member I've had for two-and-a-half years has left me to go to a servo."

Businesses fear boom shifting to bust

Tasmania has topped a suite of economic reports in the past several years — most recently CommSec's State of the States, which ranked Tasmania first on four of eight indicators.

The report, released on Monday, marked the eighth consecutive quarter Tasmania topped the leader board.

Businesses on the ground fear coronavirus has turned the state's so-called golden age into a short-lived golden moment.

CommSec chief economist Craig James said all jurisdictions were battling a COVID downturn.

"What we do expect over the next couple of quarters we could see some substantial changes in the economic performance leader board as each state and territory implements their own strategy of living with COVID."

CommSec's chief economist says maintaining government support to business is vital.  (ABC News: Maren Preuss )

Opposition accuses government of 'giving up'

Shadow Treasurer Shane Broad called for greater support for businesses and said it was crucial the return to school on February 9 was well managed to prevent another spike in infections.

"The COVID punch came very quickly and the government threw everything out the window and gave up.

"If we see a huge spike in numbers, that will impact business confidence.

"What we need to see is that proper planning, better contact tracing, better outbreak management rather than the 'let it rip' strategy we seem to have adopted."

Hope and Anchor manager Shannon Ruffels said she believed the state government should have waited to open the border.

Shannon Ruffels has had to cut back staff shifts to compensate for the business slump.  (ABC News: Maren Preuss )

She said the central Hobart pub — which claims to be Australia's oldest — had lost 90 per cent of its revenue and trade since December 15.

"There's flow-on effects. We used to have live music every Friday night and now the musicians aren't being hired because we don't have the customers to warrant paying musicians," Ms Ruffels said. 

"Everything's a mess … we've even had to limit our menu because the delivery drivers are in such short supply."

The Premier says the government is funding a new business impact support program and that will continue if required. 

Government support plan 'an insult'

In a statement, Premier Peter Gutwein said more than $160 million in COVID support payments had been made since the start of the pandemic, with grants of between $1,000 and $5,000 on offer under a new COVID-19 Business Impact Support Program.

"More than $320,000 has been paid to over 160 businesses under our new COVID-19 Business Impact Support Program," Mr Gutwein said.

"As we've already said this support represents tranche one support and we will provide further support as required."

Ms Ruffels described the latest payments offered as "an insult".

"Before the borders were opened they offered fantastic assistance and now it's like we've been hung out to dry," she said.

Mr James, from CommSec, said it was important that state and federal governments maintained support to the business community.

Doing so could help Tasmania stay on top, he said.

"I think for the next quarter or so Tasmania will remain at the top of the leaderboard because it's so far ahead of the other states and territories, but looking further down the track it will be the different strategies that each state and territory applies that will determine how it performs in the future."

Mr Gutwein said he was confident Tasmania would stay on top as long as residents maintained COVID-safe behaviours.

"By supporting confidence, our businesses and workers, we can continue to be one of the nation's top-performing economies in the months and years ahead."

I've had COVID, can I get it again?
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