Spreading virus in China hits the travel industry quickly

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The travel and lodging industries are being hit hard as a virus in China claimed more victims and spread outside that nation’s borders

NEW YORK —
The travel and lodging industries were hit hard Tuesday as a virus in China claimed more victims and spread outside that nation’s borders.

A U.S. citizen who who had recently returned from China was diagnosed with the new virus in the Seattle area, making the United States the fifth country to report a case, following China, Thailand, Japan, and South Korea.

Anxiety is growing both at home and abroad after a Chinese government expert confirmed fears that the new type of coronavirus can spread from human to human. Six people have died and 291 have been infected in China. The U.S. resident is in his 30s and was in good condition Tuesday at a hospital in Everett, outside Seattle. He’s not considered a threat to medical staff or the public, health officials said.

The outbreak is taking place during the Lunar New Year, when the Chinese government has estimated people will make around 3 billion trips. That celebration begins Saturday. While those numbers may fall as word of the virus spreads, shares of public companies in the travel industry sold off sharply, particularly those with international exposure.

The stock of United Airlines’ parent fell 5.4%, Delta lost more than 4%, and American Airlines fell almost 5%. The outbreak is believed to have started in Wuhan in central China. None of the U.S. airlines fly to Wuhan, but their Chinese partner airlines do, and some passengers do transfer from a Chinese carrier to an American one.

Marriott and InterContinental Hotels fell almost 4%. Royal Caribbean Cruises slid 4.6%, while Carnival and Norwegian Cruise Line Holdings fell around 3%.

Resorts and casinos, particularly those with holdings near China, tumbled. Wynn Resorts plunged 7%. Las Vegas Sands and MGM Resorts fell more than 5% each.

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Sahred From Source link Travel