The 2019 novel coronavirus outbreak in China is taking a heavy toll on local travel agencies and hotels as customers cancel bookings due to health concerns.
Lion Travel Service Co (雄獅旅遊) said its losses linked to canceled trips to China amount to NT$260 million (US$8.64 million) after it canceled all group tours to China for this month and next month.
Lion Travel said it would be paying customers full refunds, except for charges for visas.
Photo: David Chang, EPA-EFE
The firm said it would wait to see how the outbreak progresses before deciding whether to cancel tours booked for April.
Cola Travel Service Co (可樂旅遊) said that it had incurred losses of about NT$250 million due to canceled plane, hotel and tour bookings, affecting more than 10,000 customers.
The losses were inevitable after the government raised travel warnings on China to red, indicating that all non-essential travel should be avoided. That led to Cola Travel unconditionally paying full refunds, apart from visa fees, for tours to China until March 31, the company said.
To lessen its potential losses, Cola said it is offering customers discounts on trips to other destinations.
Life Travel & Tourist Service Co (五福旅遊) said it has suspended all tours to China and incurred losses of about NT$67 million, adding that trips to other Asian destinations remain largely unaffected, while EzTravel Service Co (易遊網) estimated its losses at about NT$150 million, with 15,000 customers affected by the outbreak.
In another blow, the Tourism Bureau yesterday announced the suspension of all tours to Hong Kong and Macau until Feb. 29, with the exception of tour groups transiting the territories.
The measure was in response to the Central Epidemic Command Center on Wednesday raising its travel advisory for the two territories to a “yellow” alert — or “reconsider visiting.”
The outbreak has also affected business at local hotels, as people avoid crowds.
Formosa International Hotels Group (晶華酒店集團) said that the occupancy rate at its flagship property, Regent Taipei, fell to 60 percent this month from 70 to 80 percent last year.
Regent Taipei public relations director Ellen Chang (張筠) said that the decrease as due to cancelations by business travelers and tour groups.
The number of free independent travelers was relatively stable, but visibility for next month and beyond is quite low, Chang said.
Regent Taipei plans to redecorate some rooms next month and in April, instead of in August and September as previously planned, due to the falling occupancy rate, she said.
Other hotels were looking to strengthen their takeout services, with Sheraton Grand Hotel (喜來登大飯店) adding luxury cuisine to its takeout menu from today and Cosmos Hotel & Resorts Group (天成飯店集團) promoting its dim sum takeout menu.
Additional reporting by CNA
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