HIGH POINT — As the number of illnesses associated with the novel coronavirus in and outside China continues to grow, the U.S. Department of State has elevated its travel advisory to China to “Do Not Travel,” the highest level warning issued to travelers considering trips abroad.
The Jan. 31 warning follows the World Health Organization’s determination that the rapidly spreading outbreak represents a Public Health Emergency of International Concern.
“Travelers should be prepared for travel restrictions to be put into effect with little or no advance notice,” the State Department said. “Commercial carriers have reduced or suspended routes to and from China.”
It added that in an effort to contain the virus, Chinese authorities have suspended air, road and rail travel in the area around Wuhan and also have placed restrictions on travel and other activities throughout the country.
The U.S. Centers for Disease Control and Prevention has kept its travel advisory to a Level 3, warning advising all travelers to avoid all non-essential travel to China. This warning falls just below the most serious Level 4 warning alerting travelers to avoid all travel to a particular country.
The outbreak has brought many areas in and around Wuhan to a standstill just as Chinese New Year comes to a close and as thousands of travelers from around the world plan to visit both factories and furniture trade shows in southern China. Wuhan is about 520 miles west of Shanghai and about 550 miles northwest of Shenzhen and Guangzhou in southeastern China.
The China International Furniture Fair, originally scheduled from March 18-21 in Guangzhou, has already been postponed until further notice. The Shenzhen International Furniture Exhibition, also set for March 18-21, also has been postponed until further notice, according to news reports.
According to the CDC, the Chinese government has closed transport within and out of Wuhan, where most of the cases have been identified, as well as other cities in the Hubei province. This includes buses, subways, trains and the international airport. It also said there is limited access to medical care in affected areas.
The CDC said the outbreak began in Wuhan in December. It noted that Chinese officials have reported thousands of cases in China with severe illnesses and deaths reported as the disease is passed from person to person. The CDC added that Chinese officials are screening travelers leaving some cities in China and that a number of cities around the world also have implemented health screening of travelers arriving from China.
The CDC said the U.S. reported the first confirmed instance of a person-to-person spread of the virus on Jan. 30. Four other individuals in the U.S. tested positive for the virus, but it was not known if the disease was transmitted from other individuals. Another 92 potential cases in the U.S. are under investigation.
At this stage, the effects on the furniture industry are unknown, although some industry officials have privately said they are looking to delay travel plans to Asia or are rerouting their connecting flights through China to other Asian countries such as Vietnam and Malaysia.
Industry officials said the effects on sample production for the upcoming spring High Point Premarket and market are immediately unknown as it is unclear how soon quality control and other middle management that traveled from Vietnam to China for Chinese New Year will be able to return to Vietnam.
Industry officials have told Furniture Today that the Chinese government is paying workers in affected areas to stay at home at least until Feb. 9 or 10. Any delays beyond that could severely affect furniture production runs, officials have said privately.
Coresight Research said that one early estimate from its Economist Intelligence Unit predicted the situation would cut China’s economy 0.5 to 1.0 percentage points, or between $7.2 to $14.3 billion.
“The outbreak hit at a crucial time for China’s economy just before the all-important Lunar New Year holiday — a major spending and travel period,” the report said. “However, we believe consumers were able to complete much of their shopping beforehand.”
It went on to say that the outbreak will hurt brick-and-mortar retail, (domestic within China and to neighboring countries) restaurants and gaming as consumers stay home.
The report also noted that many U.S. and global airlines are halting flights or are reducing capacity to China, which it said will adversely affect travel-based retail, including airport shops.
On the retail front, Ikea said it has temporarily closed all 30 of its mainland China stores until further notice.”
“The impacted Ikea co-workers are asked to stay at home until further notice with paid leave,” the retailer said in a statement. “The decision has been taken after careful assessment and consideration of the epidemic situation and supports the Chinese government’s call for strict and effective disease control. We take preventive measures such as informing our co-workers and customers about preventive hygiene and wearing masks to minimize the potential risk of being infected.”
The company added that it continues to “closely monitor this evolving situation and stay updated on information from local and global authorities, and act in accordance with their recommendations.”
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