Asian tourism industry hit by deadly health scare

Asian tourism industry hit by deadly health scare

Agence France Presse, Hong Kong

Asia's travel and tourism industries are looking increasingly sick as a deadly pneumonia virus ravages the region.

In Hong Kong, 22 percent of all scheduled flights were canceled on Sunday as demand dropped in the face of the outbreak of Severe Acute Respiratory Syndrome (SARS), bringing the total number of flights axed over the weekend to 229.

Hong Kong has recorded 22 deaths and 842 cases of suspected SARS, which first broke out in China where 51 deaths and 1,247 cases of the mysterious illness have been announced.

Hong Kong Tourism Board executive director Clara Chong said "it is clear already that April is going to be an extremely difficult month for the tourism industry."

Singapore, which is among the worst-hit countries with more than 100 cases reported and six deaths, will have to trim this year's growth forecast because of the SARS outbreak, Prime Minister Goh Chok Tong said in remarks published on Monday.

The island state will lose at least 23 million Singapore dollars (US$12.99 million) a week in tourist spending and canceled flights if the SARS outbreak continues, Standard Chartered Bank economist Joseph Tan said.

Thailand, a major tourist destination, has already seen bookings plunge by at least 20 percent and they will drop even further in April, said Saneh Roberto Jotikasathira, vice president of the Association of Thai Travel Agents.

The country is expected to lose 30 billion baht ($700 million) in tourism revenue in 2003 due to the war in Iraq and the spread of SARS, says the Thai Farmers Research Center, an economic thinktank.

Australia is revising its tourism strategy to lure visitors from countries unaffected by the virus amid fears the outbreak will devastate the tourism industry, the government said Monday.

"We have canceled substantial marketing budgets throughout Asia, parts of Europe and certainly in the United States and we're re-allocating funds into New Zealand, India and into other markets that are not affected by SARS," tourism minister Joe Hockey said.

A group of Taiwan travel agents has appealed to the cabinet for swift official assistance to help them survive the viral pneumonia scare, which they said had prompted the worst tourism crisis for 30 years.

Hardest hit is the once thriving mainland-bound tourism trade, while tourists also scrapped at least 80 percent of their bookings for trips to Southeast Asia, Japan and South Korea, according to figures compiled by the Republic of China Association of Travel Agents.

Several airlines, already hit by the Iraq war, have cut their flights to and from the region.

Japan's All Nippon Airways said it saw roughly 4,000 cancellations in March and April for China- and Hong Kong-bound flights and would cut its daily Narita-Hong Kong flights from two to one from Tuesday.

As travel agencies called off package tours to Hong Kong and Guangdong, at least 1,120 people have canceled their plans to visit either Hong Kong or Guangdong, according to a survey conducted by the transport ministry.

Malaysia Airlines has suspended one of its daily flights to Hong Kong between April 4 and April 30 and dropped two daily flights to Singapore between April 7 and May 28 because of SARS.

Korean Air, South Korea's biggest airliner, has announced the suspension of 10 routes to China until the end of the month.

Air Mauritius, which carries many South African tourists to the region, has suspended its Hong Kong flights and twice-weekly service to Singapore and Malaysia from April 10 to May 31.

Indonesian flag carrier Garuda has suspended or reduced flights to Singapore, Shanghai and Hong Kong.

Leading New Zealand travel agent Flight Center says, however, there is unnecessary panic over SARS.

"We've had cases of people canceling trips to Rarotonga or Fiji because of SARS, yet these are clearly non-affected areas," said managing director Graeme Moore.