The omicron variant poses a new threat to companies that were already struggling to recover from the economic damage caused by previous strains of the virus.
Gyms, concert halls, restaurants, airlines and other industries that have been affected by the pandemic are bracing for another wave of COVID-19 that could dampen demand and prompt further government restrictions.
Several states have detected cases of the omicron variant, which health experts say may be more contagious than the delta variant. Soon after South African scientists discovered the omicron variant, the country’s COVID-19 cases increased dramatically.
Thanks to the prevalence of vaccines, US officials do not anticipate a return to the early days of the pandemic, when entire sectors of the economy were forced to shut down. But experts still fear that many companies that barely got over the delta variant will survive another outbreak.
“We’re all on our toes right now, thinking, ‘Oh my God, what’s going to happen next,'” said Brett Ewer, head of government affairs at CrossFit. “The uncertainty really doesn’t help, especially when so many gym owners are almost completely bled.”
Fitness facilities have been hit hard by guests staying at home and COVID-19 restrictions that limit capacity or require masks. If omicron spreads quickly, the wave will likely continue into January and February, when gyms typically get a substantial increase in income from short-lived New Years resolutions.
“This is going to be a critical time and if there is a new variant that spreads and there are new restrictions, it will affect any chance that a small gym owner can try to stay viable,” he said. declared Ewer.
By the end of the year, the pandemic will have forced 25 to 30 percent of fitness facilities to close permanently, according to the Community Gyms Coalition and the Global Health and Fitness Association, which on Thursday urged Congress providing federal assistance to gyms in light of the omicron threat.
“Aid is desperately needed to remedy the damage already done to these vulnerable businesses and to support them,” the groups wrote in a letter to congressional leaders.
Another outbreak of COVID-19 could also cause problems for restaurants, which lost customers en masse during the height of the delta variant wave. Restaurant owners say they still haven’t recovered and their operations are to be continually disturbed by continued tightening of the supply chain, labor shortages and rising food prices.
The United States has lost more than 90,000 restaurants since the start of the pandemic. Restaurant groups are pushing Congress to allow more federal aid after its $ 28.6 billion bailout fund quickly ran out of money, with two-thirds of restaurants asking for help ultimately missed out.
“Until Congress decides to replenish the Restaurant Revitalization Fund, every new variation that could impact the way consumers use restaurants threatens to force thousands to close permanently,” Sean said. Kennedy, executive vice president of public affairs for the National Restaurant Association.
The outbreak caused by the delta this summer has also flattened demand for concerts and other in-person events. Theater operators, who have successfully lobbied Congress for a $ 16 billion subsidy package that they say saved about 90% of the industry from bankruptcy, are gearing up for another wave. Increases in cases cause more customers to ignore shows they have already booked, robbing operators of crucial revenue from the sale of food, drink and merchandise.
“As humans, most of us crave certainty. In the event of a pandemic, we don’t understand that. We have to expect things to change and we have to recognize that we have to adapt as new things happen, ”said Audrey Fix Schaefer, vice chair of the board of the National Independent Venue Association, which was launched. during the pandemic.
President BidenJoe Biden: China considers military base on Africa’s Atlantic coast: Biden report orders flags to be hoisted half-length until December 9 to honor Dole Biden traveling to Kansas City to promote PLUS infrastructure package said Thursday that it plans to fight a winter wave of COVID-19 with vaccines, booster shots and tests, not “shutdowns or lockouts,” signaling that the federal government will not require businesses to close their doors in case of another epidemic.
The Biden administration this week, however, did adopt more stringent testing requirements on international travelers entering the country. This is after banning international travel from eight countries in southern Africa located near the first outbreak of omicron detected.
The US Travel Association has said it hopes the new testing restrictions will be temporary, while Airlines for America, an airline industry trade group, has said it supports the administration cadre. Biden for international travel.
The threat of the new variant is already impacting demand for international travel, with several business groups canceling international events this week. Japan and Israel are among the few counties that temporarily ban all foreign travelers from entering their borders.
Weak international travel made it difficult for airlines to recover even as they benefited from increased domestic demand. Airlines are coming off a hugely successful Thanksgiving weekend that has drawn the most passengers since the start of the pandemic. But the omicron threat is already weakening domestic reservations as well.
“Recovery from COVID will never be a straight line,” said Scott Kirby, CEO of United Airlines said in an interview with CNBC this week. “Omicron almost certainly is – it’s too early to really tell, but it’s definitely going to have a short-term impact on bookings. Reservations are going to be lower than they would have been otherwise.
