The epicenter for the coronavirus is also the center for major industrial production out of China.
We’re already seeing the global impact on travel, at airports, on airlines, and on cruise ship activity worldwide and now we’re starting to see the trickle-down-effect on manufacturing, on retailers, and on consumers worldwide.
Toys, tech, clothes and cars, many American staples are feeling the squeeze and travel and tourism (outside of China) are bracing for impact.
Images of quarantined cruise ships and flights are now making many second guess traveling anywhere this spring.
Nearly 3 million Chinese tourists visit the US every year adding $35 billion to the US economy.
California which has a high volume of Chinese tourists each year, could lose $1 billion dollars in revenue this year.
Cruise and flight prices are plummeting in response to the drop in demand but may be a bright spot for an intrepid traveler unafraid to venture out.
MONITOR YOUR FLIGHTS
On Tuesday, Singapore Airlines said it will temporarily cut flights across its global network in March, April and May due to weaker demand as a result of the coronavirus epidemic.
Destinations that are among those with services reduced include:
- Los Angeles
According to Singapore Airlines, “affected customers will be notified and re-accommodated onto other flights.”
This move will cut 670 flights across 96 routes between March and the end of May, with Japan and South Korea flights the most affected.
The airline had already announced major cuts to flights to mainland China and Hong Kong previously.
But the outbreak is starting affect countries worldwide.
This isn’t surprising as demand on flights to South Korea and Japan had been hit hardest after China but this does not look like a good situation for the airline industry collectively.
Let’s file this under “developing story.”
Have any of your flights been affected? Have you adjusted your flights on other airlines because of the outbreak?