(extracted from View From Asia, Financial Times, London, 9 Feb 2020): https://www.fdiintelligence.com/article/76787

2019 Novel Coronavirus (2019-nCoV) was first detected in Wuhan China in December 2019. At time of writing (9 Feb 2020), it has killed at least 362 people and infected more than 17,300 globally. SARS cost the global economy an estimated US$40 billion in just six months.

While no one immediately knows the full impact on Asia, some signs are already showing especially with 62 governments imposing immigration control and travel restrictions on Chinese citizens and people reducing their travel amidst global travel restrictions and even within locally.

For airlines, some may not survive, commented Qantas CEO . In April 2003 at height of SARS, global airline traffic fell 19%. Already, many airlines are suspending flights to China or grounding their planes.

Directly affected are hotels, travel agents and tour guides which are experiencing much cancelled bookings. Many hospitality companies are allowing guests to cancel or change reservations with no penalties. In some countries like Langkawi, hotels have seen a 40% drop in tourist arrivals since the outbreak . In Hong Kong , four in 10 hotel staff may lose jobs. Also affected is the MICE industry . In 2018, Asia had the fastest growing MICE (meetings, incentives, conferences, and exhibitions) segment, accounting for 28.4% of global revenue. China made more than 55% of Asia market share and hosted 70% of Asia venue capacity. Southeast Asia collectively made up 10% of the Asia market share.

Retailers, restaurants and gaming industries will be hard hit as consumers stay at home. Many retail stores that remain open have reduced operating hours. Also, some retailers’ channel partners have also closed their store fronts. Apple has temporarily closed all 42 stores in China. McDonald’s has closed all its several hundred restaurants in the Hubei province, and China represents 9% of its global restaurant count. Starbucks has closed more than half of its China locations. Starbucks said the number of stores and the duration of closures are the two primary drivers of business impact .

2019-nCoV has also affected global industrial supply chain. China now makes up more than twice the share of global merchandise exports it did in 2003, when the SARS virus hit. Some manufacturers have shut their factories and offices.

Thus, of the 17 UN SDGs (Sustainable Development Goal), five which are immediately affected by 2019-nCoV are poverty (unemployment), health and wellbeing, economic growth, industry, and sustainable cities (especially those under lockdown).
A rocky start to 2020.