Since the outbreak of the deadly virus in China, there is a constant decline in share prices in the transportation department. As of Monday, the Wuhan coronavirus has left more than 80 people dead living more than 3000 people infected. Health researchers and experts are comparing the Wuhan virus to the SARS virus that defoliated the Chinese economy in 2003. However, the World Health Organist ion (WHO) is yet to call for an international emergency over the virus. The Coronavirus is a flu-like illness and can cause severe respiratory symptoms and pneumonia.
According to Stephen Innes, the chief Asian for AxiCorp, the global economy will be affected dramatically by the virus. The transport department is already feeling the Coronavirus effect. Last week on Tuesday, most airlines flying directly to China, Air Canada, Cathay Pacific Air China, and China Southern Airlines noticed a decline in their share’s prices. Most of the airlines are not flying directly to Wuhan, one of the busiest cities in China. However, it doesn’t apply to all airlines as Chinese partner airlines are still flying into Wuhan.
The massive drop of shares is also happening to the US most extensive cruises lines. By last week, the shares of Royal Caribbean Cruises Ltd, which hosts most of the Chinese citizens, fell short with four percent. Chris Murray, an analyst at the AltaCorp Capital, claimed that similar past events suggest that shares and economy may be affected severely. However, if quick measures are taken to solve the issue, stock prices may be back to the norm within a short duration of time.
The Wuhan coronavirus epidemic is similar to the 2003 SARS virus that affected more than 28 countries. More than 800 people died due to the SARS virus infecting more than 8000 people globally. According to a report by Kai Ostwald, Canada lost more than $5.25 billion of its economy, and 28000 people lost their jobs. Canadian tourism commission claimed that an estimate of 40 million revenue generated from hotels was lost in the SARS crisis. In the traveling department, more than $220 million dropped from the flight department. China, Japan, Thailand, South Korea, Taiwan, and the US are among the states that have reported a case of people with the virus. However, there is still uncertainty about how the virus is transmittable and deadly. Thus, tour operators in Canada and other states are at high alert in case of any report of the virus.