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COVID-19: $24 billion tourism loss in US? | China past the peak?

Estimated U.S. travel losses: The U.S. travel and tourism industry could lose at least US$24 billion in foreign spending this year because of coronavirus, according to Tourism Economics. That’s about seven times more than the industry lost during the SARS outbreak in 2003, according to the data, which tracks travel spending including hotels, restaurants, theme parks and attractions. It based its projections on the assumption that the coronavirus would be contained in six months.

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Good news out of China: Chinese officials said the country has passed the peak of the coronavirus outbreak, according to Newsweek. A representative of the country’s National Health Commission and the deputy director of the Department of Publicity held a press conference Thursday, with the NHC’s Mi Feng telling reporters, “Broadly speaking, the peak of the epidemic has passed for China… The increase of new cases is falling,” according to Reuters.

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Trump European travel ban draws ire: The European travel ban announced by U.S. President Donald Trump has drawn strong reactions from both sides of the Atlantic. The EU condemned the new rules, which go into effect Friday, March 13, at midnight. “The EU disapproves of the fact that the U.S. decision to impose a travel ban was taken unilaterally and without consultation,” European Commission President Ursula Von der Leyen and European Council President Charles Michel said in a statement.

Roger Dow, U.S. Travel Association president, took a different view: “In taking aggressive steps to protect the public against coronavirus, the U.S. government should now consider equally aggressive steps to protect America’s workforce and employers. The public’s health is the top concern, but now the policy conversation must address the health of the economy. Temporarily shutting off travel from Europe is going to exacerbate the already-heavy impact of coronavirus on the travel industry and the 15.7 million Americans whose jobs depend on travel. We have and will continue to engage Congress and the administration on policy steps that are necessary to ensure that travel employers — 83% of which are small businesses — can keep the lights on for their employees.”

USTAA estimated that 850,000 international visitors flying from Europe (excluding the UK) entered the U.S. in March of 2019, accounting for about 29% of total overseas arrivals to the U.S. These visitors spent approximately US$3.4 billion in the U.S. Trump on Wednesday announced restrictions on travel from 26 European countries in an attempt to prevent the spread of coronavirus to the U.S. The ban applies to travelers from countries within the Schengen border-free travel area. The U.K., Ireland and other non-Schengen countries are not impacted, as are U.S. citizens.

Singapore staycations: With international travel in spiral, Millennium Hotels and Resorts Singapore is promoting staycation business to fill rooms and has already seen an increase in the overall staycation market this year compared with 2019, according to a report in Channel News Asia. The company runs hotels including Studio M, M Social and Grand Copthorne Waterfront hotels.  

Israeli hotel occupancy dips below 40%: The coronavirus outbreak is having a greater effect on Israel’s tourism industry than expected, with owners of hotels and other vacation rentals reporting occupancy rates below 40%, according to a report in Haaretz. The Israel Hotel Association estimates that the industry is losing some US$100 million a month. A rash of cancellations for Passover bookings next month, even with discounting, are a big concern for operators. An estimated 4,000 hotel workers have been furloughed.

Elsewhere

The Marriott Long Wharf in downtown Boston is closing its doors. Seventy-seven of the 95 confirmed coronavirus cases in Massachusetts have been linked to a business meeting held at the hotel in late February.

The 21c Museum and Hotel in Oklahoma City, Oklahoma, will temporarily close after a member of the Utah Jazz NBA team tested positive for COVID-19.

Other news

Anbang sale in peril? Anbang Insurance Group Co.’s sale of a US$5.8 billion portfolio of U.S. luxury hotels to South Korea’s Mirae Asset Global Investments Co. is at risk of collapsing, according to sources, says Bloomberg. A lender group failed to garner sufficient investor demand to finance the transaction, and providing bridge financing was discussed to keep the deal alive, but some participants in the bank syndicate are balking as the impact of the coronavirus on global travel worsens.

Read more at Bloomberg

Principal Real Estate in deal for Cour Des Loges: Principal Real Estate Europe closed on the €24.5 million (US$27 million) acquisition of the Cour Des Loges Hotel in Lyon. Earlier this week Principal entered into a long-term lease with the Radisson Hotel Group, and in cooperation with Radisson will renovate and reposition the hotel under the Radisson Collection brand. 

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