Coronavirus hits global tourism hard

Empty hotels, cancelled flights, closed tourist sights. The coronavirus is crippling global tourism. The industry is already expecting losses running into billions.

The crisis in Europe is still growing: Since the outbreak in Italy, popular tourist destinations are often deserted. In Venice and Milan, museums, theaters and places of interest remain closed, major events have been cancelled. In France, too, the Louvre remains closed for a third consecutive day because employees have stopped working for fear of infection.

Meanwhile in Germany, following the cancellation of the International Tourism Fair (ITB), people are more concerned over the impact of travel cancellations from the Asia. The German National Tourist Board (GNTB) expects overnight stays from China to fall by between 17 and 25%. As tourists from China make a significant contribution to sales, amounting to around €8 billion ($9 billion) a year, the losses are likely to have a severe impact on tourism in Germany too.

"We will certainly feel the effects of this slump," Mathias Schiemer, managing director of Heidelberg City Marketing, told DW in an interview. The city on the Neckar River is one of the most popular destinations for Chinese tourists in Germany. Although, as Schiemer explains, figures are not yet available, one thing is certain: "We will not be able to compensate for this loss."

Asian countries hardest hit

The situation in Asia is more dramatic than in Europe. Of the approximately 150 million trips abroad made by Chinese people, a full 90% go to Asian countries. Chinese tourists have become a decisive economic factor there. However, because most airlines have discontinued their connections to China, the affluent guests from the People's Republic have largely stayed away.

The Indonesian island of Bali announced that 40,000 hotel bookings have already been cancelled. Japan is even more affected. There, guests from China accounted for around a quarter of the total of 32 million foreign visitors in 2018. Many sights are now visited almost exclusively by tourists from Europe and North America — although they are also increasingly staying away because of the coronavirus.

There's a similar picture in Thailand, South Korea, Singapore, Malaysia, Cambodia and Vietnam. "It is certainly a catastrophe for these countries," tourism professor and director of the China Outbound Tourism Institute (COTRI), Wolfgang Arlt told DW. Many, especially smaller businesses such as souvenir shops, hotels and tour operators have already had to close. Tourism in Thailand fears a decline of 6 million guests this year, 16% less than last year.

Situation in China

In China itself, tourism has also to a large extent come to a standstill. Popular sights such as the imperial palace in Beijing or the Great Wall of China have been completely or partially closed, and domestic air traffic has largely ceased. Especially painful for the Chinese tourism industry was the timing of the coronavirus outbreak, as the week around the Chinese New Year on January 24, 2020 was the peak travel season in China.

Hong Kong's tourism industry has also been hit particularly hard. The Chinese Special Administrative Region is traditionally by far the most popular destination for tourists and business travelers from mainland China. However, months-long protests had already led to a drop in visitor numbers last year. After the outbreak of the coronavirus, hotels in Hong Kong were only 20% full, according to COTRI director Wolfgang Arlt. Those who live from tourism in Hong Kong have had to cope with a drop in turnover of 80 to 90% in the past nine months.

Governments are supporting the tourism sector

In order to counteract the continuing economic downturn, the Hong Kong government recently announced that it intends to give all citizens 10,000 Hong Kong dollars (the equivalent of around €1200 or $1333) as a gift. Other states are also trying to save their ailing tourism industry from collapsing by means of various measures.

China, Singapore and Thailand have announced tax relief and financial aid. Vietnam and Australia also want to entice tourists from other regions into the country with visa concessions and marketing campaigns. The governments of Malaysia and the Philippines, on the other hand, have called on people to travel within their own country if possible.

China remains a motor for tourism

The coronavirus has shown how important China is for global tourism. Around 150 million Chinese traveled abroad in 2018 and spent $277 billion (€ 249 billion). This puts China far ahead of the USA and Germany. The immense growth of the Chinese tourism sector will probably not be stopped by the coronavirus. By 2030, COTRI estimates that the number of trips abroad by Chinese tourists could rise to 400 million. Then one in five international tourists would come from China.