Wednesday 22nd August, Honiara – SICCI survey indicates ongoing road construction which led to traffic congestion in Honiara has had a big impact on businesses’ sales and revenue.

The Solomon Islands Chamber of Commerce and Industry’s (SICCI) Impact of Road Construction survey report shows 98% of respondents have indicated that the on-going traffic disruptions caused by the road upgrade and sewer works has affected their business operations, contributing heavily to the delay in delivery of out-of-stock items, a reduction in the time available for client services, loss of revenue and associated costs.

Of the 52 businesses who were part of the survey, 75% have reported an impact on their sales or revenue, examples provided were reduced customers, decrease in product delivery leading to less sales and lost revenue, many reported that they found it challenging to meet sales targets in the last two months.   25% of respondents stated there was no noticeable impact on their sales and revenue.  Overall 67% of the respondents experienced a decrease in their revenue while 33% say they have not experienced a significant impact on their revenue.

Additionality businesses have experienced an increase in direct and indirect costs including increased transport and fuel costs, increased spend on call credits and vehicle repair and maintenance costs.  In terms of areas with the most increase in cost for respondents 58% indicate increased costs in transport, 35% say they have increased costs in other business operational areas, while 7% have noted higher labour costs.

The report also showed 47% have reported an increase in travel time due to traffic congestion caused by the current road construction with 45% noting that traffic congestion has limited their business operations.

For those enterprises that rely on face-to face interactions the road construction has contributed to limiting of meeting time impacting deadlines and increasing pressure on the business.

59% expressed extreme dissatisfaction on measures taken by authorities to support businesses during the road construction period.

On communications, 67% of the survey respondents have expressed their strong dissatisfaction on the communication and updates provided by authorities regarding the progress of the road construction project and its potential impact on businesses.

Overall, businesses say they would be able to put into place some functional strategies to address the negative effects of the ongoing road construction, but this has proven difficult due to inadequate information on road work and closures.

The most affected businesses are those who have suppliers located on the eastern side of Honiara as there is no alternative road to transport goods and services.

The Solomon Islands Chamber of Commerce (SICCI) is an organisation that represents the interests of businesses in the Solomon Islands. It was established in 1958 and is dedicated to promoting and developing commerce and industry in the country. It currently has over 200 members, 60% of which are SMEs and includes businesses based in the provinces.