The current coronavirus outbreak could cause lasting damage to tourism. Photo Credit: Getty Images
As the coronavirus outbreak spreads beyond China and the death toll continues to rise, travel officials say the impact on Chinese tourism could be severe unless properly handled.
Research from the World Travel & Tourism Council shows that destinations affected by viral epidemics take an average of 19 months before their visitor numbers recover. The right response, however, can shorten recovery time to as little as 10 months.
The coronavirus has already claimed 26 lives and infected as many as 881 people in China, according to The Wall Street Journal. The Centers for Disease Control has confirmed two cases in the United States and activated its Emergency Operations Center in response to the outbreak. Additional public-health entry screenings are being added to major American airports.
"We analyze many global crises within WTTC and previous cases have shown us that the economic losses from health epidemics are avoidable, through the effective use of crisis preparedness and management procedures, as well as through managing public panic and making rational decisions through travel," said Gloria Guevara, WTTC president and CEO, in a statement.
Guevara previously served as the tourism minister of Mexico and was involved in the country's recovery following the H1N1 influenza virus in 2009. The virus resulted in a $5 billion loss to the Mexican tourism industry, with the worldwide economic impact estimated at $55 billion.
According to the WTTC, the 2003 SARS outbreak had a similar impact on China, Hong Kong, Singapore and Canada, with $30-55 billion loss to the global travel and tourism sector. China alone saw a 25 percent decrease in its tourism GDP and a loss of 2.8 million jobs.
The WTTC has suggested that action to combat the coronavirus must extend beyond the Chinese authorities. The council said it supports additional measures across the Asia Pacific region, Europe and the U.K.
"Previous cases have also shown us that closing airports, canceling flights and closing borders often has a greater economic impact than the outbreak itself," said Guevara. "Global coordination and cooperation, with collaboration between the public and private sector, is going to be vital in containing the spread of the coronavirus throughout China and beyond. The most effective management of a crisis requires rapid activation of effective emergency plans, and we can see that in the early days of this outbreak, the Chinese government has acted rapidly. However, quick, accurate and transparent communication is also crucial in order to contain panic and mitigate negative economic losses. Containing the spread of unnecessary panic is as important as stopping the virus itself."