Severe Acute Respiratory Syndrome (SARS) cut a lot through operations and profitability of the market research industry in Asia, as overseas clients cancel the travel expenses of briefing meetings, observation, focus groups, and finalizing new contracts, often with just a few days notice. This has been caused by a dramatic increase in the number of overseas countries such as USA, Australia and European countries posting travel advisories against travel to the most affected countries such as Hong Kong, China, Singapore and Vietnam. This prohibition against effectively all Government or a quasi-governmental authorities from travel to affected countries, passes through the affected ports, or even a general ban on travel to Asia.
At least two weeks, many large companies in Singapore, Australia, USA and Europe has placed a ban on almost all travel, including to relatively risk free countries such as Thailand, South Korea, Indonesia and Malaysia. just yesterday, the World Health Organization (WHO) Finally, a statement, counteract all travel to Hong Kong and China.
In our quick survey yesterday covers 14 Center to top executives in the same number of multinational Asian offices or local market research and advertising agencies reported (China, Japan, Korea, Singapore, Malaysia and Thailand), 12 respondents that they so SARS as a "major" threat to sustainability in the medium term activities than the Iraq war, or a possible North Korean conflict. 2 the respondents regarded it as a "major threat".
13 respondents reported cancellations or postponements "indefinite" of market research projects where the justification was specifically related to SARS.8 these reported 3 or more projects postponed or cancelled in the last 7 days.Almost all judgment urgent communications from overseas clients ask for their advice on the impact of SARS on the results of research currently being carried out or in advertising and communication strategies being tested or developed; this was especially the case for research in tourism or transport industries, but not limited to these industries. IT clients were also very concerned about the impact of the SARS virus issue on consumer and industrial attitudes and consumption.(U & A).
Other negative effects include an overall decrease in new requests for proposals (RFP), reported by 10 companies.
On the positive side, said some leaders, they had seen an increase in enquiries concerning Web-based surveys or surveys in your phone, where human contact is much more limited than social methods such as focus groups, face to face conversations and observational methodologies.
While the Iraqi war was seen as the largest external threat to market research and advertising industries up to 2 weeks ago, SARS threat now seen by interviewees all Asian industry executives in a quick telephone survey yesterday so far more impactful already.
While the war in Iraq is still dominating the news in the Western world, in Asia, whereas spread of the SARS virus war against Iraq to interior pages.
Of course, more heavily affected some industries, such as the tourism, airline and Conference/meeting/PR sectors.Regional and international meetings and conferences throughout Asia, and to a lesser extent the rest of the world where delegates are expected from the affected countries is being canceled at an astronomical rate. Air carriers from Cathay Pacific Singapore Airlines to many airlines worldwide have cut Asian routes and frequencies dramatic, stops dead an industry already shaky from the affects of international terrorism and the war against Iraq. Asian airlines have been less affected by the decline in international tourism pga terrorism concerns due to continued strong regional demand, but SARS has put an end to. Same for a relatively healthy (relative to the non-Asian regions) tourism industry.
Hong Kong, the first country outside the Chinese mainland to be affected, have closed their schools in 2 weeks.Yesterday a whole large apartment block on the Mainland was evacuated and a floor of a hotel, where some early Canadian and Singapore event fine has been closed and disinfected.
In Thailand are arrivals from Singapore, Hong Kong, Taiwan, China and Vietnam, all being screened at the airport by taking temperatures, and all on an aircraft, on which there is a suspicion of an event is detected that is either quarantined or sent home.Visitors from these countries are required to wear a face mask for the first 2 weeks of their stay. Singapore, one of the first to be hit hard outside China/Hong Kong, their familiar effectively, attacked the problem seriously and aggressively from the start, closing schools and recently a major University and place the quarantine suspected.It would not exaggerating to say that if this early rapid reaction was not implemented, then the problem would be far higher in Singapore just now.
As Malaysia announced the end of their initial suspicions earlier this week, the Government has jumped into action and issued a letter to editors of all major newspapers asking them not to feature Malaysian cases, as it may affect tourism receipts.Malaysia has a strong record of suppress what are perceived as "negative" news about Malaysia in their own press.A few years ago, newspapers were prohibited from reporting air quality ratings and last year 2 great English language newspapers was castigated by not less than Mr Mahathir for publishing reports of poor water quality in Kuala Lumpur. Why? Both can "deter tourists from visiting Malaysia".
Malaysia Airlines announced in a development precisely today, they cancel all flights to Singapore and Hong Kong from today.
In China, where SARS is widely believed to have originated, the Government has been widely criticized for downplaying the dangers of the virus, a charge the Chinese Government declines sharply. Nevertheless, in view of the culture of Chinese society and all levels of Government, informal control with information about an unwillingness on the part of local officials to report "bad news" from their patch to their supervisors and worries cause "panic" in rural and less-educated populations among high levels of Government, impact.
In addition to the human tragedy is the impact on Asian business considerably. Growth estimates have already been revised down-wards for the most affected countries, and thus the region as a whole. Moodys is expected to be broadly to downgrade the Hong Kong very soon ... make no mistake, this is becoming a global crisis, however,. THE WHO reports that more than 200 "infections" is already present in Canada, THE USA, Great Britain, Ireland, France, Germany, Romania, Italy, Australia and Switzerland, but the only deaths outside Asia at present have been in Canada; In Asia are infections over 2000 and death is approaching 100 quick, although around 90-95% of these are on the Chinese mainland, including mainland regions of Hong Kong.
The next few weeks may well determine whether 2003 becomes just a mean or disastrous years for market research, advertising, tourism, airlines and many other industries in Asia.
Released april 04, 2003, 01: 06 PM in Asia
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