Global Health Asia-Pacific March 2020 | Page 47

Asian tourism takes an immediate hit from coronavirus Tourist numbers are down, with no end in sight for travel industry A Japanese city pitches for healthcare gaming resort Sasebo calls on medical tourism strategy to vie for one of three new casino licences A small city in southwestern Japan is hoping the addition of a spa and medical tourism facilities to its redevelopment plans will tempt the government into award it one of three new casino licences available. Sasebo, with a population of about a quarter of a million on the island of Kyushu, is competing with other cities for a permit to operate new integrated casino resorts. Although most gambling is illegal in Japan, the government passed legislation last year allowing a trio of new casino licenses. To be selected as a host for one of the facilities, communities must work with an experienced casino operator before submitting their competing final proposals to a panel in Tokyo. Sasebo’s pitch, though Casinos Austria International Japan, involves a Las Vegas-style casino resort on a 74-acre site next to a theme park. The development aims to eventually feature several hotels and restaurants, as well as substantial conference and exhibition areas. A spa and medical tourism facilities also feature in the plans. The developers behind the pitch hope that using health and medical tourism’s winning combination will be a way to entice the government to opt for their scheme. Over the last decade, Japan has been carving a niche for itself as a healthcare destination, on the back of its excellent public and private hospital infrastructure. It’s also renowned for its cancer treatment, where outcomes have been shown to be far better than in Western countries, including the United Kingdom and United States. GlobalHealthAndTravel.com sian tour operators are facing tens of thousands of tour group cancellations each day in the wake of the recent coronavirus outbreak which has persuaded large numbers of Chinese tourists to stay home, while some countries in the region have banned Chinese travellers. The tourism industry across Asia is bracing for a long period during which people from China avoid travelling in general and potential long-haul tourists put off travel to Asia due to fears of the virus. As an illustration of the coronavirus’ effect, Hong Kong’s main carrier, Cathay Pacific Airways, asked its 27,000 employees to take three weeks of unpaid leave after the airline cut about 30 percent of its overall capacity and 90 percent of its flights to mainland China. Thailand, one of the top destinations for Chinese tourists, estimates it stands to lose some US$3.5 billion in tourism revenue due to the outbreak. Authorities there now require arrivals from China to show medical clearance certificates before being allowed entry into the country. In Malaysia, where Chinese tourists accounts for 11 percent of the total tourist market share, some operators are reporting group cancellations throughout February and well into March. In response, the Tourism, Arts and Culture Ministry established a Tourism Recovery Action Committee to monitor current developments. The region faced a similar crisis two decades ago during the SARS outbreak of 2003-04. At the time, Hong Kong reported a 41 percent reduction in the contribution of tourism to gross domestic product. Similarly, Singapore recorded a 43 percent decline in visitor numbers, alongside a 25 percent drop in China, according to the World Economic Forum. While it’s still not known what the virus’ full impact on medical tourism will be, officials in the region are bracing for the worst. MARCH 2020 45