More than 50% of customer-facing businesses on the island have had to close or reduce hours due to staff shortages.
The statistics come from a recently published Chamber of Commerce survey, launched to find out how small businesses are coping with Covid isolation rules.
Over 62% of respondents of the 226 businesses that took part said they'd seen a drop in sales of at least 25% compared to 2020.
17% have seen sales drop by more than half.
The survey included sectors such as beauty, fitness, hospitality, retail and food and drink.
It comes as the Manx government announced a further £3.4 million Covid support package for local businesses struggling because of the pandemic.
The Covid-19 December Disruption Scheme provides up to £6,000 of support to eligible businesses and self employed people whose turnover was impacted through December 2021.
This is in addition to the Covid-19 Winter Disruption Scheme, which opened in December, with some businesses able to access both schemes, depending on their circumstances.
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