In the last few weeks, the Covid-19 Pandemic has taken the world by storm. With people taking extra precautions to avoid getting in contact with the virus, businesses are starting to feel the immediate impact as sales decline in leisure and travel.
While it's been only a couple of weeks, the effect on the economy can already be seen: especially in the tourism and food and beverage industries. With China’s tourists being one of the major tourism contributors in Malaysia, Singapore, and Indonesia, the businesses in the tourism and food and beverages industries such as hotelling, lodging, airlines, travel agency, tourist guide, theme parks, restaurants, and souvenirs shop, are expected to suffer the brunt the most for an indefinite period of time.
How Does it Impact These Businesses?
Let’s unroll how this pandemic outbreak directly influences the tourism industry.
With at least 16 of China’s cities on lock down: isolating hundreds of million people, this will not only affect tourism in China but also key countries that rely on Chinese tourists such as Malaysia, Singapore, and Indonesia. These countries will inevitably get affected as the number of tourists has significantly dropped already.
As the China Outbound Tourism Research Institute reported, 6.3 million Chinese tourists travel abroad during the 2019 Lunar New Year holiday, which generated a total travel revenue of around 513.9 billion yuan (US$73 billion) worldwide.
China tourists account for
- 18% of Singapore's total tourists - 3.4M out of 18.5M
- 11% of Malaysia’s total tourists - 2.9M out of 26M
- 13% of Indonesia’s total tourists - 2.1M out of 15.8M
However, the drop in the number of tourists might not be limited to tourists from China only, it may also be contributed by tourists from other regions who may be limiting their travel to Asian countries for the purpose of prevention.
To top it off, several countries have already suspended all flights to and from China. With that,
dozens of international airlines have suspended or reduced scheduled flights to China in the coming weeks, as per the picture below.
Global Flight Restrictions to and from China
With that being said, the extent of the impact on the economic growth of these Asian countries remains uncertain.
Although some may point out that the policymakers have implemented a secure environment to deter virus transmission, and initiatives to combat this economic downturn are being put into place, many businesses are still concerned about sustainability and looking for ways to push through this slump.
While countries such as Singapore have already taken necessary action to help the tourism sector in the country which was “directly affected” by the Wuhan Covid-19 by waiving Licence fees for hotels, travel agents and tour guides according to Singapore Tourism Board. There is still a lot to be done to compensate for the immediate drop in sales for a lot of businesses.
How to Overcome The Impact?
The World Bank estimates that “90% of economic losses during any pandemic outbreak arise from the uncoordinated and irrational efforts of the public to avoid infection”
As consumers remain conscious of the possible crisis brought forth by this outbreak and traffic drop in most business outlets, business owners need to plan ahead and maintain a proactive role in ensuring that their businesses continue to grow. Aside from new policies implemented by the government to combat this downturn, there are many initiatives introduced by private organizations to help businesses maintain their day-to-day profit.
With a focus to help businesses strive in this slump, Fave has come up with a "Get Back Up" Program as an initiative to help businesses boost sales through various solutions. It is designed to help businesses get more customers as they combat this economic slowdown.
Fave’s "Get Back Up" Program supports businesses to focus on local consumers by enabling them to tap into Fave’s huge database of over two million users locally with no upfront cost. The program is set to help impacted businesses bring new customers and convert walk-in customers into regular customers through a strategic customer loyalty program and marketing campaigns.
Fave has helped over 30,000 businesses over the last few years and has proven solutions to boost sales instantly. For example, one FaveDeal is sold every 10 seconds, and FavePay helps businesses drive up to 5 times more sales by bringing repeat customers.
What’s Inside the “Get Back Up” Program
If you’re one of the businesses affected by the Wuhan Covid-19 epidemic, here are a few strategies to help you boost sales amidst the inevitable sales decline.
- Broadcasting your promotion vouchers to attract millions of Fave consumers online who are constantly on their mobile phones.
- Amplifying your marketing efforts strategically through the Marketing Booster packages to increase your brand visibility online and get 2 timers more customers
- Setting up a simple customer loyalty program in 3 minutes to convert your walk-ins into loyal customers
Submit your interest below to get the Get Back Up Program and our team will get in touch with you to find the best solution for your business.
p.s. if you are new to Fave, an introductory rate will be offered to you under the "Get Back Up" program.