The Impact of SARS on the Hong Kong Tourism Industry

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Introduction

Severe Acute Respiratory Syndrome (SARS) first appeared in February 2002 in china’s Guangdong province before emerging in neighboring Hong Kong in late February. The epidemic had an impact on tourism all over the world, particularly in South East Asia. Pine R (2004).

SARS cost the Hong Kong tourism industry HK $3.8 billion in 2002.

The death fall had risen to 270 and infections were totaling 1730. Tough penalties for spitting and uttering were raised from HK $600 to HK $1500 and prosecutions on offenders were intensified. Hong Kong’s economy had already grown weak due to the impact of SARS on the tourism industry. The healthcare system had to be reviewed to manage the crisis. Tourists dropped by 65% to 490,000. The hotel occupancy rate was below 20% and not the previous 81% and 79% from February to March. In April, the loss on GDP per month due to a fall in the hotel business, airline, and travel agents was HK$ 2 billion. May cost was HK$1.8 were issued World Health Organization travel alerts against Hong Kong. Launch of events and inducement programs to encourage courts is to the city of Hong Kong. The travel alerts were a source of worry to the tourists because they tried to avoid Hong Kong and targeted other tourist destinations.

Description of the disease

SARS is a communicable disease and with the spitting of and dirt environment, no foreigner wanted to be in Hong Kong. The launch of inducement programs was costly to the tourism industry and this affected profits because it was an unexpected cost on the profit and loss account. Research and development costs were incurred to determine the real cause of the Respiratory system. This also had an impact on the Balance sheet because profits appear on the balance sheet of every entity. Cash flow in the industry was reduced due to the increased spending. At times negative cash flow could be reported and the government had to increase its budget for the tourism industry. This was a reduction of the government funds due to the supplementary budget allocation. The launching of events to attract tourists had a negative implication on the profits and cash flow of the tourism industry because this was both for domestic and international tourism. Events could be at no cost because it was meant to entice tourists. Any expenditure without unmatched revenue is a loss to an entity and this can be noted in the reduced Gross Domestic Product. The Health Travel alerts were on the airline, hotel accommodation, and even on travel agents. These are sources of revenue to the government and any cost incurred by the three is a reduction of government revenue and a reduced government funding for the tourism industry, which also needed grants from other nations.

The review of the health care system

The review of the health care system has been facing difficulties. These range from lack of funds, lack of the required personnel, and corruption. This has reduced the most by the tourists reducing their number every year. This low standard of healthcare leads to the spread of SARS and loss in tourism revenue. The lack of inspection of the industry’s facilities by the government health officials can be associated with the death toll of 270 and 1730 cases of infection. This is a negative public image in the international scene and international tourists were not ready to be part of a foreign country’s health crisis and would better be in other tourism destinations around the world regardless of the Goodwill and relations that they had created before 2002, cases of lack of funds and misuse of the available funds, corruption can also be associated with the crisis in 2002 to the effects being felt at present.

Penalties

Tough penalties for spitting and littering were not a preventive measure enough. Curley M (2004). The 65% drop in tourists experienced in 202 has to lead to a decrease in Gross Domestic product annually after that time. Funding of the tourist industry by the government has been low. The industry doesn’t have enough for its research and development. The industry cant deal with other dimensions of growth and development and this has to lead to a stagnation of the industry due to old styles of operation. Computerization at all departments of the industry has been low and this has greatly delayed the progress in terms of effectiveness and efficiency of services offered. Hong Kong’s tourism industry is now below other parts of the world, which did not experience the same crisis and did not have to focus on such. Tourists are not interested in what happened in 2002 but are interested in where they can have fun at the moment and destinations that have not had cases of SARS.

The government has been trying to reserve the position but all in vain because statistics already show that b April 2002, the death toll for SARS in Hong Kong was 270, and infections at that time were 1730. Tourists are always looking for weak points in any tourist destination and their form a good ground for them to change the route. The goodwill that they have already created with other destinations cant be reversed and these new tourists destinations will continue enjoying the fruits of their tourism industry thanks to the impact of SARS in the Hong Kong tourism industry.

The inducement events and programs by Hong Kong to the tourist don’t add much value because SARS is something that already happened and can reoccur. Tourists consider their health more than the fun that they can have as tourists in Hong Kong. So their planes in Hong Kong have to remain suspended.

The increase in penalties from HK$600 to 1500 was not good enough. Offenders were not worried much about this and this did not stop them because they could do it at their own cost regarding less of the health implications. This is a habit that before had been used before the outbreak of SARS. Tourists did not care much about the penalty but were interested in the tourism industry dealing more with the cause of SARS, not the ways of spreading penalties could not reduce the spread of SARS and the tourists kept on watching the crisis from a distance but not in Hong Kong.

The tourism industry had to finance the clearing of streets, housing blocks, and the environment. Dirty streets residential areas and the environments were areas where the Acute Severe Respiratory Syndrome was being bred and this lead to a serious transmission of the disease to those working in airports, airlines, and travel agents. These were people in close contact with the tourists and acquisition of the syndrome was easy. These cleaning efforts were costing the concentration of tourism officials and management in the normal operations of the industry itself and there was a reduction in the quality and quantity of services. This was a weak point for Hong Kong tourism competitors because their services remained standard and tourists diverted to these destinations at the cost of Hong Kong. This meant that they could host the tourists for enforceable future because once bitten twice shy.

Waste disposal systems

Sewage pipes had to be worked on. At that time waste disposal systems were reported to be in a mess and might have been the cause for the outbreak. These were to be treated and repaired to avoid any future outbreaks. The SARS is communicable and there was a first-rate transmission in the business, travel agents, or even at airlines. Those working there could also get the same from ordinary citizens and hence transmission to the tourists was first. Sewage pipes in Hong Kong are widely connected and this covered the tourist points. Henderson JC (2004).

The HK$3.8 billion losses for the tourism industry occurring in April and May 2002 have never been recovered to date. Stakeholders in the industry for that financial year were paid out of Reserves. Debit on the Reserves account determines the balancing in the Trial balance account and the stability of the entity is therefore affected. The deficit in the Reserves due to the effect of losses out of SARS was to clear through funds from other accounts. This affects greatly affected the cash flow statement for 2002 and the opening balance of cash flow in 2003, 2004 to date.

Among the 230 deaths were officials in the tourism industry. They are people who had been trained and experienced enough to deal with tourists due to their experience for many years, these officials have never been replaced or those new officials are either not qualified or lack the experience required. Services have therefore been low and tourists have chosen other destinations hence giving tourism in Hong Kong a big challenge. Extra costs have been incurred in the restoration of its market leader position in the world and this has not been easy for the tourism industry’s management

The effect on the environment

The environment had to be improved because most tourist destinations are on the field and this could have resulted in more transmissions. The rough penalties for spitting and uttering offenses were meant to prevent more political of the environment. World Health Organization also was concerned because this was a serious health risk to the left of the world. This lead to the serious attention of Hong Kong at the international level and this negative publicity was working towards the coming down of the tourism industry. Interested tourists had to think twice before carrying on the Hong Kong soil and this further decreased the industry’s forecast of profits and variations profits did not impress the stakeholder of the industry and this reduced the finances to the industry and hence negative cash flows. SARS can be said to have hurt all the cash flows of the industry, which include the profit and loss account, the balance sheet, and the cash flow statement.

Recommendations after the SARS case in Hong Kong

Maintaining high standards of health and hygiene for the environment. A committee is necessary for the management and control of SARS all around the year and health guidelines in restaurants and public places.

Center for Disease Control and Prevention (2005)

Maintaining high standards for health and hygiene: SARS is a communicable disease and breeds most in unclean areas and the environment. Tourists are interested in only those areas in a country that they come into contact with. This includes airlines, hotels, and travel agents. If they notice something not hygienic and is against the standards of a healthy living trust me they will not visit Hong Kong anymore. The tourism industry is a major contributor to the exchequer of any country. The government allocates some budget for the industry from its revenue industries contributing a lot to the government revenue are allocated more funds for their development and growth. The tourism industry should therefore think of increasing its profits so that revenue to the government through taxes is improved.

Kercher B MC (2004)

The health ministry should therefore ensure that both health and hygiene standards are high because the focus should not only be on tourists but also the other citizens. Surveys by health officials should be regular to ensure that the airlines the hotel and travel agents maintain the same standards. The environment should be considered to ensure that every possible cause of SARS is avoided. Officials in the tourism industry should also have health certificates. The government of Hong Kong should issue the certificates after someone has gone through a thorough checkup for SARS and all other communicable diseases. This will deal with all causes of threat to the tourists because health is wealth to any elite.

Conclusion

In conclusion, the impact of SARS in the Hong Kong tourism industry was enormous and it leads to a decline in standards of the tourism services at that particular time. Same international tourists who changed their destinations at that particular time, 2002 have never returned and income to the industry has been greatly reduced. Future cases of communicable Respiratory syndromes should be avoided to keep off such crises. This can only be through observing high standards of hygiene at the airlines from and to Hong Kong routes, hotels business and in the travel agents. These are the point where the tourist can notice something funny, something that is an indication of a future outbreak of SARS and this may lead to moving effects on the industry as a whole. Chien (2003).

References

Chien, G. Cl. (2003). International journal of Hospitality Management. Volume 22, Number 3. Elsevier Publishers.

Chien G.CL. (2003). Impact of the Severe Acute respiratory Syndrome.

Curley N Thomas. (2004). Australian Journal of International Affairs Human Security and Public health in South East Asia.

Department of Health and Human Services; Center for Disease Control and Prevention (2005).

Henderson JC (2004). Managing a health related crisis; SARS in Singapore.

Kercher B Mc (2004). The overreaction to SARS and the collapse of the Asian tourism.

Lee JW. (2003). Health management. Brookings Institution.

Pine Ray. (2004). International journal of contemporary Hospitality. The impact of SARS on Hong Kong’s tourism.

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