Bookings for Adam Hely’s King Island hire car business were “stronger than ever” as interstate visitors prepared to flock to the island’s golf courses and tourist attractions. Key points Tasmanian businesses have reported slower retail activity since the state reopened its borders in mid-December Economists say mobility data has confirmed the slump, with retail and recreational activity at its lowest level since September 2021  A support package for affected businesses is expected to be announced by the state government later this week But a COVID-19 outbreak on the island, as well as a Public Health directive to reconsider travelling there, meant operators were being flooded with cancellations, instead of raking in the money.  “Predominantly we’re just taking cancellations,” Mr Hely said. “We’ve been employing people for the last two years. To simply take bookings [and then] to cancel bookings without getting the actual hires out there [is devastating]. “We’ve been tearing up money for two years and we got a bit excited we were going to be back in the game and now we’re in a dreadful position in regards to all the cancellations that have been made.” Mr Hely, the president of the island’s tourism association, said the story was the same all over the tight-knit community.  “The golf clubs were fully booked, the hotel accommodation, the tour companies; everyone was looking forward to an absolute bumper of a year,” he said. To date, more than 100 COVID cases have been diagnosed on King Island. Supplied Michael Laskey For southern Tasmanian venue owner Bernadette Wood, the border reopening has also provided logistical challenges. Despite a surge in interstate bookings, late cancellations mean the number of weddings going ahead at one venue was down between 10 and 40 per cent.  At her two restaurants, almost one third of her staff are unable to work due to having COVID or being deemed close contacts, and local diners are staying away. “We’re definitely seeing that there’s not many locals frequenting that area, I think locals are very much staying to their own areas and not going out much,” she said.  Catch up on the latest COVID-19 news here Retail activity slows post border reopening AMP senior economist Diana Mousina said those stories were borne out by Google mobility data that showed retail and recreation activity for the first week of January had fallen to the lowest level since September last year.  “It could be some Christmas or New Year impacts that have had led to the shift down in the data, but I think it’s more reflective of the very high increase in cases that Tasmania has had pretty much in the space of two or three weeks,” she said.  “I think that there will be a hit to activity for Tasmania from the high increase in cases, but I think the same thing will happen across the other states and territories as well.” A more in-depth picture of how Tasmania’s economy has performed since the reopening will become evident in coming months when retail and employment statistics are published, Ms Mousina said.  Retail activity in Tasmania has slowed since the state’s COVID cases began to increase. Luke Bowden Louise Grimmer, a senior lecturer in retail marketing at the University of Tasmania, said business owners were telling her it was “very quiet in many sectors”.  “Even though we are not in a formal lockdown, effectively, consumers are acting as though we are,” Dr Grimmer said. “Particularly in terms of visitation to physical stores and cafes and restaurants, we are seeing a reduction in spending across many categories such as clothing, footwear and accessories, household goods including furniture and appliances. “I think it’s a worrying time for local Tasmanian businesses and it will be important for government at all levels to acknowledge the reality of the situation and step in with financial and other types of support so that businesses can get through this difficult period of uncertainty.” Support needed to navigate uncertainty Dr Grimmer said businesses would need a combination of government assistance and community support to get through the latest downturn. “We were brilliant at doing this in 2020 and 2021, when many local businesses thrived, and it will be important that we try to do our best to again support local stores in 2022,” she said.  Tasmania’s COVID rules and restrictions ” everything you need to know What are the rules on masks? What is the deal with checking-in? So many questions. We have all the answers here.  Tourism Minister Sarah Courtney said businesses in some parts of the state had been impacted by the spread of COVID-19 and encouraged businesses to contact Business Tasmania for advice and support, on top of the yet-to-be-announced support package.  “We are seeing a large degree of variation with the impact on businesses across Tasmania. While indeed there are some businesses who have been impacted negatively, I know that there are businesses that are thriving because of visitors coming into the state,” she said. A support package for businesses is set to be announced by the state government later in the week. Labor has called for a specific package to help King Island businesses, something Mr Hely said was sorely needed.  “I’d hope that package to be substantial enough to see those businesses get through to the other side and a substantial marketing campaign, so we’ve got something to look forward to,” he said. Want more Tasmanian news? Set the website or the app to ” Tasmania Top Stories”  from either the home page or the settings menu in the app to continue getting the same national news but with a sprinkle of more relevant state stories. Here’s a taste of the latest stories from Tasmania ðŸ“° Tasmanian paramedics ready for Ukraine mission Rockliff drops health portfolio in cabinet reshuffle What can we learn from Aboriginal-run medical clinics? Charity site bought back for $1 after staff member’s memory jolt Football game abandoned after umpire abuses player Loading… Read our full coverage on COVID-19 here Loading…