Auckland's CBD could lose as many as 12,000 jobs and $3.1 billion in economic activity (GDP) by March next year as a result of coronavirus according to a new report.
Released by independent economist Strategy.Ease the report suggests that even with a planned exit from Level 3 in the next week, there is still a huge projected loss.
Business association Heart of the City says it's a direct result of the hospitality and tourism industries being key pinnacles of the city centre's revenue.
"The businesses that give the heart of our city its vitality and distinct character are amongst the worst affected," says association chief executive, Viv Beck.
She says the financial blow felt in the fallout of Covid-19 is significantly worse than the Global Financial Crisis in 2008 where the CBD lost 4,000 jobs.
The report estimates it could take as long as two years for the city centre to reach close to pre-pandemic levels of activity, but Ms Buck suggests most small businesses in the area won't have the financial capacity to ride out until 2022.
"The impact of losing international tourists, students and events took an early toll on these businesses and this was compounded by people working from home," she says.
"The large-scale loss of customers will continue to have a severe impact, even once we reach Level 2."
Ms Buck says they are calling on the Government to consider how they target small business in the upcoming Budget on May 11 to ensure the CBD is running smoothly by the time big events set to arrive in 2021 get underway.
"We need a collaborative and sustainable approach to support our small businesses to ensure we have a vibrant city centre to showcase with America's Cup and APEC still scheduled for next year."
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