A leading global digital marketing solutions provider has warned the Coronavirus is going to hit the US travel industry hard and could result in lost revenue and tens of thousands of jobs. Performars, has predicted that the lack of Chinese visitors could cost the travel industry as much as $10 billion over the next four years with half of that over the next 12 months.
It is expected that hotels, retail, dining sectors, will be hit the hardest with no alternative but to make cutbacks which could include job losses. This forecast is just based on the loss of Chinese tourism.
China has become an important country for the US travel industry. Chinese tourism is the third biggest spending power behind the UK and Japan. If the outbreak continues and more countries are affected, then the $10 billion loss may just be a drop in the ocean.
The number of cases in the UK is continuing to grow which is a serious worry for those that rely on foreign tourism. Already people living in the UK are cancelling their holidays abroad, including holidays in the US. With people being worried about behind confined to small spaces and entering airports then even more people could turn their backs on an annual visit to the US.
If the Coronavirus does spread in the UK, and the UK Government recommends that only essential travel should be considered then this could result in the US travel industry losing as much as $30 million or more.
The US travel industry is keeping a close eye on the situation with many big brands already putting plans into place in case they see a drop in revenue. Some businesses are even looking at ways to market themselves once the Coronavirus has been restricted, which could see some in the travel industry doubling their marketing budget.
Performars has warned the travel industry that it should not panic and instead should carefully monitor the situation.