The effects of SARS on China's tourism enterprises

Tourism businesses are operating in an increasingly turbulent environment and are being forced to react to extreme circumstances that are outside of their control. This paper examines the affects of SARS on tourism enterprises in China through a national survey of hotels, travel agencies and other tourism-related businesses. While all types of enterprises were adversely affected, it is shown that differences existed according to the types of tourism enterprises. In particular, those located close to centers with SARS concentrations suffered most, large multinational enterprises were impacted more than smaller establishments and some attractions, particularly those in the periphery of major urban centres, benefited somewhat from the redirection of demand. The fiscal responses introduced by government to assist the industry were generally well received. There was strong agreement that the tourism market recovered rapidly following SARS and that those that had precautionary measures in place, particularly the large multi-national enterprises, recovered most quickly. Strong opinions existed on the need for governments and enterprises to set up precautionary management systems to prepare for tourism crises. There was also substantial agreement that sudden crises that affect the tourism industry will become more frequent in the future, indicating recognition that the operating environment is becoming more turbulent. Nevertheless, most respondents were optimistic about their future operating environment.