President of the Inter-Island Transportation Committee of the Tobago Chamber of Industry and Commerce, Diane Hadad, says more small and medium businesses have been forced to close their establishments due to the worsening economic climate on the island.

Speaking on the State of the Nation Programme on Power 102.1FM on Tuesday afternoon, she said continued challenges in sea and air transportation between Port-of- Spain and Scarborough and a decline in domestic and international tourists have also contributed to the situation.

She said there is now a heavily reliance on income received from the majority persons who are employed with the Tobago House of Assembly.

Ms. Hadad cited the importance of projects in the tourism sector such as the proposed Sandals development which she said is needed to spark renewed interest and life in the industry that continues to struggle.