Travel industry sees effects of epidemic

Several airlines and cruise c o mpani e s h a v e c a n c e l e d r outes t o China, t he Walt Disney Co. has temporarily closed i ts two theme parks i n Chi na a nd t h e Chi ne s e government i s prohibiting travel from the Wuhan region because of a coronavirus outbreak that already has killed more t han 1 00 people and infected thousands more.

As the most populous nation in the world struggles to contain the outbreak, travel and tourism experts worry that the virus — besides becoming a global health threat — could play havoc with surging multibi l l i on doll ar gl obal t r avel and tourism industries unless the illness can be contained quickly.

The outbreak comes at a particularly inopportune time as China recently began to celebrate the Lunar New Year, one of the most popular travel periods in the country. China has become one of the world's f astest growing sources of international travel because of the growth of the Chinese middle class with money to spend and a taste for international adventure.

CDC warnings

The Centers f or Disease C o n t r o l a n d P r e v e n t i o n warned Americans to avoid a l l n o n e s s e n t i a l t r a v e l t o China because of t he new coronavirus. The U.S. State Department raised its warning on China to Level 3, which urges people to “reconsider travel.” The agency also has a Level 4 ( “do not t ravel”) warning for the Hubei province, where the disease was first identified in Wuhan.

Vari ous e l e ments of t he industry, including multibillion dollar airlines and cruise companies and mom-and-pop travel agencies, are already feeling the pinch.

“We are very concerned that we have seen a lot of cancellations and closure of airports,” said Gloria Guevara, president and chief executive of the World Travel & Tourism Council, a trade group for the world's travel industry. “Yes, we are concerned about the spread of the virus and to stop that spread as soon as possible but panic is spreading faster than the virus.”

She noted that previous pandemics in Asia have inflicted financial blows of up to $65 billion on the travel and tourism industries. “This could be a bigger hit if we overreact,” Guevara said. “It could be huge.”

In Southern California, some are already noticing a slowdown.

Albert Eng, the owner of