The Cook Islands government is preparing to take on more debt if the tourist bubble with New Zealand is not open by mid-year.
Its wide-ranging support and subsidies are keeping 350 businesses from going under as they struggle to survive.
“It has a real trickle down effect, from the local growers who would supply their product to the tourism market right through to fishermen,” Prime Minister Mark Brown says.
“They struggle to maintain the level of life or prosperity they had before Covid, that’s where we come in to prop them up until we get to the stage when tourism can kick start which we are looking at hopefully this year.”
The economic wounds in the Cook Islands are critically deep.
As well as providing a subsidy, the government is also paying 70 per cent of the interest on loans and mortgages.
Despite this, all 350 businesses getting help are struggling to keep afloat - at least a dozen businesses face bankruptcy by the end of next month.
The subsidy is due to end midyear but will be extended if necessary.
“If tourism does not kick start shortly we will have to look at lifting levels of debt to protect investment in the tourism industry,” Brown says.
The Kai Guy's Ash Steele is one of those hoping hungry tourists return sooner rather than later.
"It's been pretty tough for a lot of local people, we have tried to support local growers and build our menu on those things, but the thought of tourists coming back is a glimmer of hope for everyone."
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