How Australia’s travel industry has become VERY ill due to coronavirus 

Airlines are in a full blown ‘price war’ as Australians scrap their holidays in droves over coronavirus fears.

Extreme discounts are available on flights to destinations around the world as carriers desperately try to fill seats on increasingly empty planes.

The virus has infected more than 82,000 people and caused more than 2,800 deaths, mostly in China where the first emerged late last year.

Experts now fear it could become a pandemic as cases pop up in new countries every day and a vaccine is still not available.

Airlines are in a full blown ‘price war’ as Australians scrap their holidays in droves over coronavirus fears. Pictured are plight attendants wearing masks at Brisbane Airport

Travellers, wearing masks as a precautionary measure to avoid due to coronavirus, are seen at Salgado Filho airport in Porto Alegre, Brazil, where new cases have been reported

Travellers, wearing masks as a precautionary measure to avoid due to coronavirus, are seen at Salgado Filho airport in Porto Alegre, Brazil, where new cases have been reported

Qantas slashed flights to Asia in response to plummeting demand, grounded 18 planes, stood down 700 jobs, and expects to lose $150 million.

Virgin Australia similarly said coronavirus would cost it between $55 million and $75 million in the second half of the financial year.

However, airlines can’t cut too much capacity so great deals are being offered to fill as many empty seats as possible. 

Even Bali is struggling to attract visitors to Australia’s most popular holiday escape with flights as low as $209 despite no confirmed cases.

‘We’ve decided to cancel, as if we were to get sick, the healthcare in Bali is just not equal to options at home,’ one holidaymaker wrote on social media.

‘It’s $400, so I’d rather lose that, than a life.’

Travellers wearing masks to protect themselves at Jorge Chavez International Airport, in Lima, Peru, as many more cancel their trips around the world

Travellers wearing masks to protect themselves at Jorge Chavez International Airport, in Lima, Peru, as many more cancel their trips around the world

Tourists wearing face masks visit Saint Peter's Square in Vatican City after the Italian government declared a state of emergency over coronavirus

Tourists wearing face masks visit Saint Peter’s Square in Vatican City after the Italian government declared a state of emergency over coronavirus

Another wrote: ‘Yes, we cancelled. Why risk your kids lives/health? I won’t be heading overseas until this situation plays out.’

Bali Airport said there were 40,000 hotel booking cancellations in recent weeks and in the first half of February visitors were down 16.25 per cent on last year. 

‘Bali is very very quiet, haven’t seen Bali like this ever,’ one traveller who was on the island last week wrote.

Travel agencies are struggling too with Flight Centre admitting to investors its yearly earnings would be battered by $100 million.

Chief executive Graham Turner said airlines were locked in an ‘extraordinary price war’ as they scrambled to sell their vacant seats.

‘One thing for sure is once we know a bit more about the virus we will be aggressive in marketing what are perceived as safe destinations, such as New Zealand, South Pacific and the U.S.,’ he told investors on Wednesday.

But not even flights closer to home in comparatively ‘safe’ New Zealand are exempt with Qantas dropping some trans-Tasman fares to $119.

Air New Zealand went even further with flights in March costing just $69 on the Auckland-Melbourne leg and just $10 more for many others.

Flights across the ditch usually cost at least $240 when booked about a month in advance, as is the case with these flights. 

Tourism to lose $2 billion a month

The coronavirus outbreak means Australia will have 1.8 million fewer international visitors in the first six months of this year compared to last year, a group representing tourism and transport companies says.

The Tourism and Transport Forum estimates the number of foreign travellers visiting the country between January and June 2020 will be down 40 per cent on the same period in 2019.

TTF chief executive Margy Osmond said the peak industry body for the tourism, transport and aviation sectors had produced economic modelling to show the effects of COVID-19 if the virus was not able to be contained within the next three to six months.

The TTF suggested there would be an average monthly loss in total tourism receipts of $2 billion beyond March.

‘What we are facing is a contracted visitor economy with significant losses across international visitation, tourism spend and employment in 2020 and beyond,’ he said.

‘The economic impacts reflect the loss of direct tourism spend (tourism receipts) by the reduction in international visitor arrivals and the estimated reduction in employment within the visitor economy due to business slowing, [or] in some instances closure.’

These losses would be worse than the 2003 SARS epidemic that slashed international visitors to Australia by 9.4 per cent and cost $US30-50 billion.

Australia is even more reliant on Chinese tourism than in 2003 and that source has been reduced to zero by the government’s travel ban.

Australians are so fearful of travelling at all that Qantas and Jetstar are cutting capacity on domestic routes by 2.3 per cent.

Jetstar in response offered fared as low as $29 on major routes in a desperate attempt to limit the damage. 

One of the best deals is flights from the east coast of Australia to Los Angeles on Qantas at an unheard-of $564 return with similar prices for San Francisco.

Toronto and Vancouver can be visited for little over $900 on some airlines and Fiji Airways is running routes to its home nation for $526.

Asia, where the virus has far more cases, has been belted even harder with Qantas forced to cut 16 per cent of its capacity there and Jetstar 14 per cent.

Some routes had the number of flights cut by half and those that are running are often using smaller planes. 

Virgin has canned its Hong Kong route altogether from Melbourne and will stop flying there from Sydney next week.

Outrageous deals are on sale as a result with flights that would usually go for hundreds down to double digits.

Air Asia launched a blitz sale to Malaysia, Japan, Korea, Taiwan, and India with flights to its base in Kuala Lumpur going for just $89, and Brisbane to Bangkok for $103. 

Coronavirus has killed more than 2,800 people globally and can cause severe lung damage and trigger multiple organ failure

Coronavirus has killed more than 2,800 people globally and can cause severe lung damage and trigger multiple organ failure

Travellers said they feared not only catching coronavirus abroad, but being stuck overseas by travel bans and cancellations, or being forced into quarantine. 

Lisa Van Der Westhuizen, from Sydney, cancelled her holiday with a friend to Japan after the government raised the alert level. 

‘I just thought it seemed a little bit risky… and I’ve got young kids (and) one of them, in particular, gets asthma when he is sick,’ she told SBS.

‘In my mind, I was thinking there would be a chance it would escalate while I was over there and be impacted by a quarantine period on the way home.’

Australians who have already booked flights or are thinking of doing so should check with airlines and travel insurance companies to see their policies.

Many insurers are not covering coronavirus claims at all unless the flights were booked many months ago before the virus became a ‘known event’ on January 23.

Airlines and insurers also won’t pay you back if you just decide it’s too risky to travel somewhere, or at all, but if a country is added to the ‘do not travel’ list they may relent.

Policies marked ‘cancel for any reason’ exist but they are significantly more expensive than usual ones.

Travellers also need to be careful if they have a layover in Singapore, Hong Kong, or Malaysia as authorities will give everyone temperature checks and anyone with symptoms will be sent to hospital for quarantine. 

CORONAVIRUS CASES IN AUSTRALIA: 23

NEW SOUTH WALES: 4  

January 25

  • Three men aged 43, 53, and 35 who had recently travelled to China contracted the disease.
  • Two flew in from Wuhan while the other arrived in Sydney from Shenzhen, south China.
  • They were treated in isolation at Westmead Hospital

January 27 

  • A 21-year-old woman is identified as the fourth person to test positive for the illness in NSW.
  • The woman, a student at UNSW, flew into Sydney International Airport on flight MU749 on January 23 and presented to the emergency department 24 hours later after developing flu-like symptoms. 

VICTORIA: 7

January 25

  • A Chinese national aged in his 50s becomes the first confirmed case of the coronavirus in Australia.
  • The man flew to Melbourne on China Southern flight CZ321 from Wuhan via Guangzhou on January 19.
  • He was quarantined at Monash Hospital in Clayton in Melbourne’s east.

January 29

  • A Victorian man in his 60s is diagnosed with the coronavirus.
  • He became unwell on January 23 – two days after returning from the Chinese city of Wuhan, the epicentre of the outbreak. 
  •  The man was confirmed as positive on January 29 and was subsequently seen by doctors at the Monash Medical Centre.

January 30

  • A woman in her 40s is found to have coronavirus. 
  • She was visiting from China and mostly spent time with her family.
  • She is being treated at Royal Melbourne Hospital.          

February 1

  • A woman in her 20s in Melbourne is found to have the virus 

 February 22 

  • Two passengers taken off the Diamond Princess cruise ship test positive
  • Third passenger taken off the cruise ship tests positive

QUEENSLAND: 8

January 29

  • Queensland confirms its first case after a 44-year-old Chinese national was diagnosed with the virus. He is being treated at Gold Coast University Hospital.

January 30

  • A 42-year-old Chinese woman who was travelling in the same Wuhan tour group as the 44-year-old man tests positive. She is in Gold Coast University Hospital in stable condition.  

February 4

  • An eight-year-old boy was diagnosed with coronavirus. He is also from the tour group where the other Queensland cases came from    

February 5  

  • A 37-year-old man, who was a member of a group of nine Chinese tourists in quarantine on the Gold Coast, also tested positive

February 6

  • A 37-year-old woman was diagnosed with coronavirus from the same travel group that flew to Queensland from Melbourne on January 27

February 21                                                                                                                                      

  • Two Queensland women, aged 54 and 55, tested positive for COVID-19 and will be flown to Brisbane for further treatment. 
  • A 57-year-old woman from Queensland also tested positive for the virus  

SOUTH AUSTRALIA: 3

February 1

  • A Chinese couple in their 60s who arrived in Adelaide from Wuhan to visit relatives are confirmed to have coronavirus.
  • A 24-year-old woman from South Australia was transferred to Royal Adelaide Hospital

WESTERN AUSTRALIA: 1

February 21

  • A 78-year-old man from Western Australia was transferred to Sir Charles Gairdner Hospital in Perth. On February 28, he was taken into intensive care in a ‘serious’ condition

DIAMOND PRINCESS CRUISE SHIP: 8

  • Of the 23 overall cases in Australia, eight contracted the disease on the Diamond Princess cruise ship, which had gone into quarantine in the Japanese port of Yokohama
  • They tested positive for the coronavirus after arriving at the Manigurr-ma Village Howard Springs facility in Darwin, and are now being treated in their home states

 

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