After China imposed travel restrictions after the Wuhan coronavirus epidemic, several businesses operating in the travel industry reportedly took a big hit. It was revealed that millions are now restricted from leaving the country causing airlines, casinos, hotels, and cruise operators to suffer financially.
According to Lethbridge Herald, the travel industry relies heavily on proceeds from tourists who travel to China during the Lunar New Year. The peak travel season was said to have been adversely affected by the Wuhan coronavirus outbreak leaving the biggest travel season in Asia at a stand down.
The report claimed that an epidemic that would hit China would also affect the global economy, as it is the second-largest economy in the world that is engaged in several trade deals with other countries. It was then discussed that4.3 percent of the world economic output was from China last 2003 when the SARS outbreak shook the world. In 2019, the rates went up to 16.3 percent, reported the International Monetary Fund.
Nevertheless, the report claimed that tourism in China was already losing even before the epidemic struck. It was revealed that the Hong Kong protests also adversely affected the country's travel industry including the trade dispute between Beijing and Washington.
However, it was highlighted that in 2019 alone, about 134 million Chinese travelers contributed to the industry's profitability. During that year, the number of travels increased by 4.5 percent. The China Outbound Tourism Research Institute also forecasted that about seven million Chinese people were to travel during the Chinese Lunar New Year in 2020, a 6.3 million increase from 2019 figures.
Chinese travelers also accounted for as the biggest spenders in the travel industry to destinations such as London, Milan, New York, and Paris. More travelers were also expected to visit Hong Kong, Japan, Thailand, and Vietnam over the Lunar New Year.
Tourism industry officials then announced that the Wuhan coronavirus has been the biggest threat to the country and its neighbors including the US and Europe. It was also anticipated that these locations might also suffer major repercussions in the event that the virus could not be contained.
Hong Kong was said to be the most vulnerable to the industry's collapse. The report explained that it had been suffering from a negative appeal to tourists after weakening for months of protests. By November, it was revealed that inbound tourism to Hong Kong had already been down by 56 percent in 2019.
According to France 24, at least 81 people have died from the outbreak causing shockwaves through Asia's tourism industry. The report claimed that the travel restrictions came at a very inopportune time since Chinese foreign travel had been booming.
Businesses in travel destinations were revealed to be suffering financially as beaches, resorts, shops, and other travel industry-related establishments were 'deserted' as the outbreak prolongs.
