What the Coronavirus Means So Far for the Travel Industry
Skift Take
The travel industry is starting to feel the impact from this latest global health crisis. How it responds to help contain the spread of the virus will set a new precedent while weathering an extensive disruption to its business.
The coronavirus has rapidly become a serious global concern after first being detected in the final days of 2019 in the Chinese city of Wuhan. The travel industry is increasingly bracing for its impact.
Chinese officials reported Friday that there are 830 cases and 26 deaths, and there are confirmed cases in countries including the U.S., Thailand, Japan, South Korea, Taiwan and others. The quarantine has been expanded to 12 cities including the epicenter of Wuhan — an area representing an astonishing 35 million people.
The World Health Organization on Thursday, called for precautions, but fell short of declaring a “a global emergency,” at least for now.
The travel industry may experience an outsize impact and disruption from efforts to contain the spread of the virus. Here's a breakdown of coronavirus' impact so far on key travel sectors: tourism, aviation, hotels, and business travel.
Tourism
When it comes to the tourism sector, the damage of the coronavirus is as much about the seriousness of the virus itself as its inauspicious timing. China’s Lunar New Year begins on Friday, which under normal circumstances would kick off the biggest annual mass movement of people in China, and indeed the world.
An estimated 400 million Chinese travelers totaling three billion trips were expected to travel for the several-weeks-long holiday period to other areas of China and countries across the Asia-Pacific region. It can be the only time of the year that some rural Chinese workers see their families.
This creates a major challenge for the destinations bracing to receive (and now, monitor) all those arriving tourists. In keeping with World Health Organization advice, screening for passengers arriving from China with the use of thermal scanners has been ramped up at airports across the world, the Associated Press reported. In the UK, universities warned Chinese students that they may be quarantined upon return from China if they choose to travel home.
Another challenge is the expected loss of revenue that will occur as a result of many travelers staying home. The quarantine means that millions of people are unable to leave the region, including on flights. As such, a significant drop in the volume of people traveling for the season from that region is to be expected. In other regions, it's likely that people will stay home or cancel trips out of fear or precaution. This could have economic implications similar to the SARS crisis of 2003, wro