The novel coronavirus outbreak has quickly taken its toll on the global tourism industry.
China, one of the biggest sources of foreign tourists, is restricting foreign travel to contain the outbreak. Several foreign governments have also imposed travel bans, while major airlines have suspended flights to and from China.
The travel restrictions for the Philippines will be costly in the near-term period. A number of hotels, restaurants and stores will see a marked drop in sales with less tourist traffic in Boracay Island, Puerto Galera, Bohol, Palawan and other exotic destinations. China is the second largest source of tourism traffic in the Philippines.
The global airline industry is among the first sector to suffer the brunt of China’s decision to quarantine dozens of cities and ban overseas tour groups. Several airlines are reducing their schedules. British Airways, Delta, Air Canada, Air France and Lufthansa are among the leading carriers that have canceled all their flights to China.
Hong Kong’s Cathay Pacific is suffering the biggest financial hit. It asked its entire workforce of 27,000 to take up to three weeks of unpaid leave following the coronavirus outbreak.
Casinos in Macau, a playground for the rich and the hopeful from mainland China, have also closed their doors. Philippine casinos may not be able to take advantage of Macau’s restrictions because of travel restrictions and strict quarantine rules.
Finance Secretary Carlos Dominguez III has conceded that Philippine tourism sector will be “badly hit” following the travel ban imposed by Manila to and from China and its territories. Foreign visitor arrivals in the Philippines declined 1.3 percent in 2003 to 1.9 million at the height of the severe acute respiratory syndrome episode. Arrivals, though, rebounded 20.1 percent to 2.3 million the following year.
Mr. Dominguez is hoping domestic tourism will increase and offset the slack in the foreign travel business. Increased local tourism activities can boost domestic consumption and somehow lessen the adverse impact of the flu outbreak on the overall economy.
The Department of Tourism, meanwhile, should double efforts to attract more travelers from Taiwan and Southeast Asia, as well as non-traditional markets such as India and Russia to sustain the growth of the local industry.