Hong Kong tourist trade battered by killer virus

Hong Kong tourist trade battered by killer virus

Agence France-Presse, Hong Kong

The outbreak of a killer pneumonia virus in Hong Kong has
devastated the key tourism sector, and many within the industry
expect the situation to worsen as more countries issue travel
warnings to steer clear of the city.

Economists have warned that the spread of the atypical
pneumonia virus which causes Severe Acute Respiratory Syndrome
(SARS) will cost the economy billions of dollars, with tourism
and retail sectors the major casualties if the situation remains
unresolved.

Hong Kong has been at the centre of a worldwide alert over
SARS since an American businessman, who had visited China and
Vietnam, succumbed to the disease here on March 13.

Since then some travel agencies have reported that new
bookings to the territory have slumped up to 90 percent with
possibly worse to come as more nations issue warnings calling on
citizens to avoid trips to the city.

The executive director of the Travel Industry Council, Joseph
Tung, said the number of tourist arrivals had slumped some 30
percent in the past week alone, while outbound tours were also
down 20 percent.

"There is not much we can do about the travel warnings," he
said. "However, we are calling on overseas travel agents to
provide advice to their customers not to cancel their trips to
Hong Kong, but merely delay them for a while."

The U.S. and Ireland issued warnings to its citizens on Friday
to avoid most travel to China, Hong Kong, Singapore and Hanoi,
while Canada imposed strict screening procedures of passengers
flying in and out of affected areas.

Hong Kong officials announced another SARS-related death on
Saturday taking the toll in the city to 12. Another 45 infected
people were added to the territory's tally raising the total to
470, the third highest rise since the outbreak started.

The latest death brings the global total of reported SARS dead
to 55, with the World Health Organisation (WHO) saying around
1,500 people are infected.

Hong Kong had been looked upon with envy at the start of 2003
after it announced tourist numbers soared 20.7 percent to 16.6
million for 2002 on the back of a surge in mainland Chinese
visitors.

Visitor numbers around the globe slumped in the wake of the
September 11 terrorist attacks.

Tourism officials tipped a tougher year ahead for 2003, with
forecast growth of 8.4 percent growth after factoring in effects
of the US-led war in Iraq -- but they had not bargained for SARS.

Economists warn the double blow, if not resolved quickly, will
hammer Hong Kong's tentative economic recovery. The government
has forecast GDP growth of 3.0 percent for 2003 after the economy
grew 2.3 percent in 2002 and just 0.1 percent a year earlier.

"Aside from the terrible human cost of war and illness, we
believe the most immediate economic impact on Hong Kong is the
likely setback to inbound tourism," Morgan Stanley economist
Denise Yam said in a report.

Hong Kong could lose HK$2 billion (US$257 million) in the next
two months, equal to 0.16 percent of Gross Domestic Product (GDP)
if the war and the SARS outbreak did not end soon, Yam forecast.

The local tourism industry also suffered another severe blow
Saturday with the cancellation of concerts in Hong Kong by rocker
Carlos Santana and pop star Moby just days after The Rolling
Stones axed weekend shows in Hong Kong.

This followed announcements from Qantas Airlines it would
reduce by 20 percent the number of flights from Australia to Hong
Kong from April 1 to mid-July.