How will businesses fare after Crop Over?
Wednesday August 03 2011 | 05:16 AM

CROP Over is normally a peak in economic activity in Barbados and with the Rihanna concert many Barbadians appear to be freely spending for entertainment. The question is what will happen after the festival fever has come to an end, how will businesses survive the remaining period until Christmas?

Andy Armstrong, President of the Barbados Chamber of Commerce and Industry (BCCI) refers to this as an Interesting phenomena. He explained, “Crop over season is like what happens at Christmas people overspend and then cut back in January. People are being thoughtful how they spend their money and cutting back in other ways. Supermarkets are seeing a slight reduction in sales where as entertainment is doing well.”

“People are deciding entertainment is more important to spend money on that day to day item and choosing less expensive alternatives and cutting back on how much they consume. It will be interesting to see what happens in August,” he said.

Lynette Holder, CEO, Barbados Small Business Association (BSBA) echoed similar sentiments, “Crop Over is seasonal just as we have an expected influx at Christmas time the same would happen for crop over . This is good as it redounds to our small firms that are in entertainment, vending and restaurants those kind of leisure industries there is a peak in economic activity.”

However she noted, “After August 5th which is Rihanna’s concert, my concern will be what happens during that three month period until December. All eyes will be on the Minister of Finance Christopher Sinckler pending budget to see what he is going to bring now to help with further stimulation with the economy as well as stabilisation in the small firms in particular which is our concern.”

“The budget should be soon approaching and we are eagerly awaiting his plans for that latter half of the year to the start of the winter season because that is a lull in economic activity, the question will it be even worse?, she questioned.

Holder believes, “All eyes are on the US economy some of the international markets are already being affected by the US economy’s challenges and we tend to have a 6 to 9 month lag until we feel full effects.”
On the other hand, Bobbi McKay, Executive Director of Barbados Manufactures Association (BMA) believes, “Overspending at this time shows there is confidence in the economy, in manufacturing we are seeing new projects.

Shows like Rihanna are a blessing , money needs to circulate, we need to keep having events. Later on we will have the Barbados Food Wine and Rum Festival this stimulates the economy. 

The money is there it is a matter of priority, people who would quarrel over the price of local bread but would but shoes for $300. Overall, spending is positive we need to have money circulating and this should not cause a drastic decline in business at end of August.”

McKay believes, “It is up to corporate Barbados not only Government to help find different events for persons to spend money. At all levels people will benefit in, retail, vendors, hairdresser etc.”