Worrying Impact of Coronavirus on the Hotel Industry
Officially declared as a global health emergency yesterday by the World Health Organization, the coronavirus outbreak has been at the top of headlines for weeks. In such a short time, this highly infectious virus has not only impacted people, but also markets and industries worldwide- especially the hospitality industry.
More About the Virus
Coronavirus, or 2019-nCoV, first made headlines in late December when several people in Wuhan, China fell ill with pneumonia-like symptoms. The virus supposedly originated from a seafood and animal market in Wuhan and has now started spreading from person to person. Thousands of people in more than 20 countries have been infected and at least 213 people have died so far. Health screenings have been put in place at major airports and entire cities have been quarantined to try to prevent further spreading of the virus.
What This Means for Hotels
China’s mass quarantines and travel advisories, during the usually busy Lunar New Year, could seriously threaten business for a number of global hotel chains. Brands like Marriott and Hilton draw significant revenue (think: $200+ million) from China’s tourists. In fact, in 2018, three million Chinese tourists visited the U.S., making the country the third highest source of oversea visitors. In general, travel rates across the globe have dropped from fear of catching the virus.
What are Hotels Doing?
Many brands are quickly informing their general managers of the signs and symptoms of coronavirus to hopefully identify any guests that may be sick. Ultimately, hotels are following the lead of the Centers for Disease Control and Prevention by trying to prevent further spread of the virus.
The Silver Lining
Although coronavirus is spreading rapidly, it is in most cases no more dangerous than the common cold. Right now in the U.S. a person is more likely to get the flu than coronavirus. So, it’s not quite time to panic yet. Hotels can also find comfort in that other similar health scares (think: Ebola outbreak and SARS epidemic) did not have lasting effects on revenue.
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