After SARS, perception next big battle for tourism - Business Travel - managing misinformation

Business Asia, May, 2003

It seems Asia can breathe a little easier again, with all signs pointing to the fact that the worst of the SARS crisis is over. There is no doubting that the outbreak of severe acute respiratory syndrome (SARS) has hit Asia's tourism and business travel sector hard in recent months. Some economists estimate SARS could cost the region as much as US$30 billion ($46.2 billion) in lost economic growth this year, with the airline industry and hotels right at the frontline.

But in most of the affected countries, the rate of new SARS infections has slowed, and in some cases stopped. New measures put in place by various governments and organisations to stem the flow of the virus seems to be working. But a potentially more important battle still looms ahead for the business travel sector--that of fighting the negative perceptions that have arisen around SARS.

Short term hit

The SARS outbreak tops off a turbulent decade for Asia's beleaguered tourism industry, which has also had to contend with the financial crisis of the late 1990s, the 11 September attack of 2001 and the Bali bombings last year.

This latest setback may be the most serious, however, with travel agents around the region saying SARS has been the worst crisis the industry has faced.

Travel to Hong Kong and Singapore--two of the most affected countries, has plummeted. Singapore, which has the third highest death toll in the world due to SARS infections, saw visitor arrivals drop 67 per cent in the four weeks to 28 April. Hong Kong, which has the second highest death toll, is thought to have dropped by more than 70 per cent during the same period. Some hotels in Hong Kong have reported as little as 10 per cent occupancy rates.

Passenger volumes have also dropped significantly, with several airlines cutting flights and staff to cope in the short term. Preliminary figures have found that passenger volumes had dropped by 60 per cent in Hong Kong in April, 40 per cent in Singapore and Seoul, 37 per cent in Bangkok and 36 per cent in Kuala Lumpur.

The region's lucrative trade fair scene has also been hit hard, with fairs and exhibitions drawing little crowd support or being cancelled all together.

Worst is over

Officials are hopeful, however, that the worst is behind the tourism industry.

"The situation appears to be stabilising with the daily number of new cases in Hong Kong on a declining trend," Hong Kong Tourism Board director Clara Chong says.

Singapore's tourism head has echoed Chong's sentiments, with chief executive of the Singapore Tourism Board Lim Neo Chian saying: "My own personal assessment is that it has bottomed out."

Some airlines are also seeing the light at the end of the tunnel. Qantas chief executive Geoff Dixon said that the news was getting "a little better". "Providing that continues I'm hoping we will get back to our normal flying pattern, probably within 12 months," he said.

Health officials are certainly supportive of these positive views. WHO has said that the outbreak had peaked in Hong Kong and Singapore, and Vietnam was cleared in late April after not reporting any new SARS cases for 20 days. Other countries in the region such as Malaysia and the Philippines are reporting little to no new cases. China, however, still remains a concern.

Swift action

The fall in new infections can be attributed to measures put in place by airlines and governments to curb the spread of SARS.

As well as checks of incoming and outgoing passengers for symptoms of SARS, some governments, such as Singapore's, have put in tough quarantine procedures and hefty fines and jail sentences for those who break quarantine.

Countries are not tackling the problem on their own, however, with the region pulling together as one to fight the virus. Regional leaders have already met once in Bangkok to discuss means to prevent cross border infections, and plan to meet again in Manila soon. The Manila meeting aims to "tie up all the arrangements of outbound checks, as well as common health care declaration cards, as well as treatment of people who develop a fever after leaving a country," Singapore Health Minister Lim Hng Kiang said.

Misinformation

The greatest danger for the region now lies in convincing global travellers to look past the media hype and travel again.

Even when the virus was wreaking havoc at its peak, the whole region, rather than the isolated countries experiencing the worst cases, was tarred with the same brush. International Air Transport Association (IATA) said fear of SARS had slowed travel well beyond the affected areas. Tourists and business people are avoiding Thailand, Indonesia, Malaysia and Japan, where the number of SARS cases are "infinitesimal", IATA spokesman William Galliard said.

Misinformation about SARS, particularly about how it is transmitted, seems to be a key factor in people's incorrect perceptions.

The reach of SARS has remained small compared with the similarly transmitted diseases such as influenza and tuberculosis, which together kill 2.5 million people a year. As a comparison, as of 5 May, SARS had infected 6583 people and killed 461 since its estimated "outbreak" was first reported in March.