Wuhan coronavirus: Some tourism-related firms hit hard by travel ban

SINGAPORE — Some businesses here — especially those located in tourist spots — are feeling the heat from the Wuhan coronavirus situation, with the ban on travellers who had recently been in China.

Some companies told TODAY that they are seeing as much as a 60 per cent drop in takings compared to Chinese New Year last year.

Crowds at entertainment spot Clarke Quay have dwindled, businesses say, although the Orchard Road Business Association said it’s still business as usual at the shopping belt popular with tourists.

The annual travel fair organised by the National Association of Travel Agents Singapore (Natas) has also been postponed from February to May.

Meanwhile, companies have started adopting measures to protect their staff against the virus, such as instituting a 14-day leave of absence for all workers who returned from China, as well as making their front-facing employees wear masks.

On Saturday (Feb 1), Deputy Prime Minister Heng Swee Keat announced that the tourism and transport sectors, which have been worst hit by the virus outbreak, will receive targeted help in the upcoming Budget, due to be delivered on Feb 18.

TRAVEL, RETAIL AND F&B SECTORS HIT

Several travel agencies, retailers and food and beverage outlets told TODAY that their business has suffered ever since the Wuhan coronavirus outbreak went global.

Mr Kelvyn Chee, the managing director of retailer Decks, which operates several brands such as Island Shop and Surfers’ Paradise, said that sales have dropped by about 20 per cent overall compared to the Chinese New Year period last year.

Shops at Marina Square, Tanglin Mall and Lucky Plaza have been harder hit, with sales plunging by about 60 per cent over the same period. These malls are located in the city centre of Singapore and Orchard Road, areas which are more dependent on tourists.

Mr Chee added that sales at suburban malls have actually remained steady.

Businesses at Clarke Quay — another tourist spot — have also dwindled, according to some store managers who spoke to TODAY.

Mr Louis Chan, a restaurant manager at Indonesian restaurant Bayang, said that its takings have gone down 60 per cent compared to a year ago.

“Crowds are getting lesser, especially locals. There are very few customers… tourists are getting fewer… There is a big shift in Clarke Quay,” he said.

Mr Chan is also dealing with another problem: The restaurant ordered extra inventory in anticipation of the huge crowds typically seen during the Chinese New Year period.

But the decline in customers has resulted in them having to throw away stocks that cannot be kept or stored.

“It’s a really big headache… We brought in our orders but now they are stuck here,” he said.

SaladStop’s managing director Adrien Desbaillets said their outlets located in shopping malls have seen a 10 per cent drop in takings. However, those located in the Central Business District area have not seen much of an impact, as they mainly cater to the office crowd.

A spokesperson from BreadTalk said that it is expecting overall business to be impacted, though the F&B group did not reveal any figures.

Travel agency Dynasty Travel said it received 200 cancellations from customers who had previously booked a trip to China during February and March.

Its communications director Alicia Seah said the impact of the virus outbreak on its business has been enormous.

“At this juncture, many who have not booked tours will adopt a wait-and-see approach. It’s quite significant,” she added.

Ms Seah also said that the travel agency will be looking at cost-cutting measures, such as by reducing advertising and marketing campaigns.

A spokesperson from another travel agency, Chan Brothers Travel, said that all tours from China into Singapore have been suspended from Jan 24.

However, Mr Steven Goh, the executive director of Orchard Road Business Association, said it’s “business as usual”.

Feedback from the association’s members during a recent meeting was in fact positive, with several saying that business during Chinese New Year has been good.

“We don’t have actual numbers. But anecdotally, from observation, it seems like there is no sense of panic,” said Mr Goh.

LITTLE IMPACT ON OPERATIONS

Beyond the impact on business, some companies said their Chinese staff who went back to China have not returned, although most said it is a small proportion.

Hot pot restaurant Haidilao did not reveal actual figures, but a spokesperson said that the proportion of its staff who went to China during Chinese New Year is very low as most of its employees are locals.

“Due to the impact of the epidemic during Chinese New Year this year, the company has informed the employees who went to China to temporarily extend their stay in China. There is only one employee who returned from Harbin, China after Chinese New Year,” said the spokesperson.

Chinese nationals typically make up a substantial proportion of manpower for construction projects.

Mr Kenneth Loo, executive director of Straits Construction, said 30 per cent of his company’s staff are Chinese nationals, out of a total staff strength of 800.

However, only about 20 of the Chinese workers went back to China.

Mr Rajan Krishnan, chief executive officer of KTC Construction, said his company employs about 160 Chinese nationals out of a total of about 2,400 staff.

And out of these 160, about 20 to 25 went back to China during Chinese New Year.

“If this thing extends for long and the situation gets even worse, there will be a major impact.

But currently, it seems to be under control so far,” said Mr Rajan.

It is a different story for manufacturing firm TranZplus Engineering.

Two of its Chinese nationals went back to China, out of a total staff strength of 52, and have not returned. One is a production manager and another a skilled machinist.

TranZplus chief executive Nelson Lim said the firm has had to restructure its operations to cope with the absence of these two workers, and increase overtime hours for existing staff.

“There is a limit to how much overtime they can work,” he added.

He is also concerned about whether he would have to continue paying for their levies, given that they are unable to come back to work despite being part of the company’s head count.

On Sunday, Manpower Minister Josephine Teo said that about 30,000 work pass holders have not returned to Singapore after the Chinese New Year break, and they make up less than 1 per cent of the workforce.

PREVENTIVE MEASURES

Several companies said they took reference from the Government’s precautionary measures and have started taking protective steps.

For Haidilao, BreadTalk, Straits Construction and KTC Construction, all employees returning from China have been asked to quarantine themselves for 14 days.

They have also been told to monitor their health and check their temperatures several times a day.

For construction workers who live in dormitories, Mr Rajan said dormitory operators have set up a special quarantine area within the dormitories for workers who are on leave of absence.

Several other firms have also required all staff and visitors to their office premises to fill up a travel declaration form.