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UAE’s travel and hospitality operators are concerned that the coronavirus outbreak in Wuhan, which is spreading fast in China, could hurt their business, as flight restrictions and travel advisories have clamped down on guest numbers from one of the biggest source markets of Gulf tourism.
Two of the region’s biggest carriers, UAE-based Etihad Airways and Emirates, have halted flights to destinations in China, except to Beijing, after the UAE ordered the suspension of most flights between the two states as part of the precautionary measures to help contain the virus.
“We have seen a significant year-on-year drop in sales since the beginning of this month after a relatively good January [due to the outbreak],” Peter Papas, executive director of Food Fund International, told Zawya on Sunday.
Papas’ company operates a chain of restaurants across the UAE and benefits greatly from tourist arrivals from China and other Asian markets. He lamented that the virus scare has not only affected Chinese tourists’ arrivals, it has also discouraged the public from frequenting crowded areas.
“I think the negative media press throughout the world on the virus is unnecessarily scaring people from everywhere, not just Asia. This, I believe, is causing people to change their travel and even restrict their travel arrangements, with many people trying to avoid crowded places,” Papas pointed out.
Premjit Bangara, general manager for travel at Sharaf Travel Services, said ticketing agents have seen “noticeable decline” in customers from China since the outbreak. Bookings from outbound customers have likewise been impacted, with some Gulf residents opting to cancel their travel plans to Asia.
“We have had around 10 cancellations and many clients have also deferred their trips to the region, including Singapore, Thailand and Hong Kong,” Bangara told Zawya. “These cancellations will certainly have an impact on the [UAE] tourism industry in the long term, as the inbound season here stretches till the end of March,” he added.
Tourist arrivals from China have grown significantly in recent years. As of last year, China was the fifth-biggest source market for Dubai’s tourism industry, just behind India, Saudi Arabia, United Kingdom and Oman. From January to December 2019, close to 1 million Chinese travelers ( 989,000) visited Dubai, up by 15 percent from the same period in 2018.
Fears about the economic impact of the virus mounted after the number of infected people accelerated in weeks. As of Sunday, there were more than 37,000 individuals who contracted the virus globally, the vast majority in mainland China. The death toll has also reached more than 800. In the UAE, at least five people were earlier diagnosed to have the virus, although one of them has just recovered from the illness, according to health authorities.
Economic experts have said that among the first few sectors that will feel the financial impact of the virus are the hospitality and travel sectors. What is more worrying is that the crisis started just a few months before the World Expo 2020, a gathering of global exhibitors, and during one of the busiest periods for the UAE’s tourism industry.
“[The outbreak] will have a negative impact on the hospitality industry, as any drop in tourism and hotel occupancy has a direct impact on the hospitality sector in general,” said Papas.
“The bigger concern is the timing of this coming in the peak winter periods and ahead of Expo 2020,” Papas added.
Manu Midha, regional head for the Middle East at OYO Hotels & Homes, said they have also received a “sizeable number” of booking cancellation requests primarily from guests who have been impacted by the travel restrictions between China and the UAE.
“Most of these requests have come from leisure travellers, particularly tour groups from China,” Midha said. The Indian hotel chain operates homes, living spaces and hotels globally, including the UAE.
However, Midha noted, they have yet to see “many requests” for booking refunds or to rebook from travelers visiting the UAE for business or to attend exhibitions and conferences taking place in the UAE.
He expressed fears that if the virus is not contained soon, it could seriously impact the global economy. “The UAE is a popular tourist destination and the travel and tourism sector contributes a significant chunk to the nation’s GDP. History teaches us that the previous epidemics resulted in causing a serious dent in the global industry and its after-effects were prevalent months after the epidemic was stabilised,” he said.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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