Coronavirus Update: Shilla closes in Seoul and Jeju; Confirmed case numbers surpass SARS; death toll reaches 361; Lotte Duty Free shuts Jeju - The Moodie Davitt Report - The Moodie Davitt Report | Canada News Media
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Coronavirus Update: Shilla closes in Seoul and Jeju; Confirmed case numbers surpass SARS; death toll reaches 361; Lotte Duty Free shuts Jeju – The Moodie Davitt Report – The Moodie Davitt Report

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South Korea

The Shilla Duty Free has temporarily closed its downtown stores in Seoul and Jeju in response to the worsening coronavirus situation, The Moodie Davitt Report can confirm. Local reports say that a coronavirus-infected person was confirmed to have visited the Seoul flagship twice last month. [Source: Yonhap News].

“Sales have slumped in recent days as the situation has worsened,” a Korean travel retail veteran told The Moodie Davitt Report from Seoul this morning. “Over 70% of sales have gone from downtown duty free.”

This startling picture tells the story of a mounting crisis. Against the backdrop of a Louis Vuitton boutique inside one of Asia’s most important travel retail stores, health officials prepare to carry out protective measures against the coronavirus.

Fellow Korean media Newsis carries similar dramatic imagery.

China

2,829 new cases of coronavirus were reported in China yesterday (2 February), bringing the total number of infected case to 17,205.The death toll hit 361.

Philippines

The Philippines today reported its first death from the novel coronavirus, the first fatality outside China.

International

Hotels, luxury shops and other attractions and destinations that are heavily reliant on Chinese tourists face an even bigger crisis than during the SARS outbreak of 2003, according to a Bloomberg report.

“From Tokyo to London, hotels, casinos, airlines and retailers are already recording a downturn and are bracing for weeks, if not months, of plummeting spending after China curbed outbound travel and governments tightened border controls,” the news agency reported.

 “The benchmark everyone is comparing this to is SARS in 2003” –Luya You, Bocom International Analyst

In fact the impact could be much greater. As reported by The Moodie Davitt Senior Retail and Commercial Analyst Min Yong Jung, total air passenger traffic by Chinese has grown exponentially since 2002, the year before the SARS crisis peaked. Since then the Chinese spend has become the engine room of growth for travel retail worldwide, generating over 70% of sales in the world’s biggest duty free market, South Korea, alone.

Total (domestic and international) Chinese passenger figures in millions; Source: National Bureau of Statistics China; Moodie Davitt Business Intelligence Unit

“It’s a triple whammy – Chinese travel more, they spend more and they spend more on beauty products,” Jefferies LLC consumer analyst Stephanie Wissink told Bloomberg. “Chinese travellers are the most significant and most important customers for growth in the travel retail industry.”

“The benchmark everyone is comparing this to is SARS in 2003,” said Luya You, a Hong Kong-based transportation analyst at Bocom International. “The actual cost and negative impact of this virus could be greater because more Chinese are travelling than before. The cost of preventing travel, grounding flights is magnitudes higher than what it was in 2003.”

How long will this crisis last? What will be its impact on global travel retail? How long will the recovery take? Those are the questions on everyone’s lips in the travel retail sector. [Chart: Generation Research; TFWA]

China

As of midnight Saturday Beijing time, the coronavirus death toll had reached 304. Encouragingly, 328 people have been cured and discharged from hospital. The number of suspected cases in China stood at 19,544  with 14,380 cases confirmed.

South Korea

Lotte Duty Free has today announced the temporary closure of its Jeju downtown duty free store from tomorrow in order to prevent the spread of the coronavirus domestically.

The measure is necessary “for the safety of customers and employees”, Lotte said.

Lotte Duty Free confirmed that a Chinese customer who visited the store on 23 January and later returned to Yangzhou, China, had been confirmed subsequently with the coronavirus.

A Chinese customer who entered the store on 23 January was later diagnosed with the coronavirus

Until the closure, no new customers are being allowed into the store today and customers already in the store are being asked to leave.

Lotte Duty Free Jeju will carry out additional quarantine work after the store is closed. The retailer will decide when to reopen after consultation with the health authorities and Jeju Special Self-Governing Province.

A company spokesperson said: “We decided to close the business quickly on a temporary basis to prevent the spread of the new coronavirus in Korea.”

As reported, Lotte Duty Free formed an emergency response committee on 24 January with CEO Kap Lee as Chairman. The retailer is conducting thorough health inspections at stores, implementing a self-disinfecting policy at least six times a day; obliging all employees to wear masks and providing customers with masks.

China

Song Guoyou, Deputy Director of the Center for American Studies at Fudan University, has slammed US Secretary of Commerce Wilbur Ross’s claim, made Thursday, that the coronavirus would help accelerate the return of jobs to the US.

“It’s hard to believe that such immoral remarks were made by a US Commerce Secretary,” Song wrote in a hard-hitting opinion piece in state-controlled Chinese state media Global Times.

“There is no boundary for this epidemic. The novel coronavirus is the common enemy of mankind.”

“Basic compassion and morality are the yardsticks of human behaviour,” he wrote. “But Ross’s comments show that extreme selfishness seems to have dominated his mindset and values. He is so cold-blooded that he has ignored diplomatic etiquette, taking the public health epidemic that a country with 1.4 billion people is grappling with as an opportunity to realize American interests.”

Hard-hitting editorial: A leading Chinese commentator slams perceived American opportunish

He continued: “The H1N1 influenza pandemic, known as swine flu, that first broke out in the US in 2009, was also declared by the World Health Organization (WHO) as a public health emergency of international concern. Scientists estimated that the flu pandemic that swept more than 200 countries and regions killed about 280,000 people worldwide.

“In the US, the influenza virus led to the deaths of an estimated 10,000 people. Imagine if a Chinese senior official had said the swine flu would hit the US economy and accelerate the flow of global investment into China when the US was combating the virus, what would Americans and international society have thought? The only thing Ross cares about amid the novel coronavirus outbreak is the return of manufacturing to the US. He is too narrow-minded.

“There is no boundary for this epidemic. The novel coronavirus is the common enemy of mankind. As the commerce secretary of the world’s most powerful economy, instead of exploiting China’s crisis, Ross should fairly appraise the efforts made by the Chinese government in fighting the coronavirus.”

China

Chinese authorities confirm 11,791 cases of novel coronavirus in the country, with 259 deaths and importantly, 243 people confirmed to have recovered. [Source: Global Times]

“The WHO declaration is understandable. How China’s battle against the novel coronavirus goes and what trajectory the Chinese economy will head this year are determined by China’s own efforts. As long as we can put the epidemic under control, many problems will be solved. The WHO’s declaration will not become a major hurdle for China to make up for its current losses.

“It is possible that some countries would use the WHO declaration as a lever to overreact to the current virus outbreak in China. But still, as long as China contains the epidemic, the situation will improve. Most countries and world organizations have no reason to find fault with China over the epidemic after it is effectively contained, because they will only end up suffering losses if they do so.

“We have to concentrate on fighting the epidemic. While China has left a lot of room for improvement, from an outside perspective, China’s public health battle this time has been resolute and orderly. It is hoped that our efforts can effectively curb the epidemic so that China can hold more initiatives in world affairs this year.”

– Edited highlights from an editorial in Chinese state media Global Times, 31 January

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International

As part of our continuing service to update the travel retail community on the novel coronavirus outbreak and its impact on business, we are pleased to announce a phone-in audience with Dr David Heymann on Wednesday (5 February) at 9am (GMT).

From 2012 to March 2017, Dr Heymann was chairman of Public Health England. Earlier in his distinguished career, he was Executive Director of the Communicable Diseases Cluster, and headed the global response to SARS in 2003.

For more information on how to get involved with the free event, click here.

Russia

Russia today reported its first two cases of the coronavirus, report Reuters and official Russian news agencies. Both are Chinese citizens, who were diagnosed in the Siberian regions of Tyumen and Zabaikalsky Krai respectively.

Deputy Prime Minister Tatiana Golikova said that Russian airlines will halt flights to China from midnight tonight, although the national carrier Aeroflot plans to continue. It has offered passengers the option of rebooking or a refund, but has not yet cancelled flights.

Russia has closed its 4,300km land border with China to try to protect against the spread of the outbreak.

China (Macau)

Following our earlier report that arrivals in Macau had dropped -69% in the first four days of the Lunar New Year period, we can now confirm that total arrivals for the Lunar New Year week plummeted -78.3%.

Overall arrivals in Macau for the Lunar New Year week; Source: Macao Tourism Data Plus

During the Lunar New Year week (24 January to 30 January inclusive), arrivals from Mainland China were down -83.3% compared to the equivalent period in 2019 (4 February to 10 February inclusive).

The drop off in arrivals was particularly pronounced over recent days. Arrivals in Macau from Mainland China declined by over -90% on each of the last three days of the Lunar New Year week compared to the equivalent period a year earlier.

Arrivals in Macau from Mainland China for the Lunar New Year week; Source: Macao Tourism Data Plus

Macau Daily Times reports that the novel coronavirus will particularly impact the cash flow of Macau’s gaming industry, a sector inextricably linked to the special administrative region’s duty free operations.

China

Authorities say 9,692 cases of the new coronavirus pneumonia have been confirmed, leading to 213 deaths. The number of confirmed cases is now higher than the 8,098 seen during the SARS outbreak in 2003.

China is “confident in and capable of” effectively containing the novel coronavirus epidemic, and eventually defeating it, the National Health Commission of the People’s Republic of China said in a statement today.

The Commission was speaking after the World Health Organization (WHO) declared last night that the novel coronavirus outbreak has become a Public Health Emergency of International Concern (PHEIC).

WHO Director-General Tedros Adhanom Ghebreyesus had stressed that the WHO did not favour imposing travel or trade restrictions on China, the Commission noted. As reported, however, the U.S. Department of State last night issued a Level 4 (‘Do not travel’) Travel Advisory relating to China.

Image: National Health Commission of the People’s Republic of China

International

As countries and airlines globally restrict travel to Wuhan and China, the Reuters news agency has compiled an extensive summary of steps taken by airlines in response to the coronavirus outbreak. Read the full list here

Click to read the full summary from Reuters

China (Hong Kong)

Cathay Pacific and Cathay Dragon have suspended inflight duty free sales on flights to and from Mainland China with immediate effect.

The Cathay Pacific Group added that the meal service in first and business class will comprise a single tray with appetiser, main course and dessert served together, with trolley services suspended after the meal. Passengers in economy class will be served a disposable snack bag including a hot handheld snack and other items.

Amenities including hot towels, pillows, blankets and magazines will also not be offered to any passengers.

“This modified service offering is strictly a temporary measure designed to further strengthen our health and safety protocols in light of the evolving situation regarding coronavirus cases in Mainland China. These changes will enable us to provide enhanced protection for our customers and crew while at the same time continuing to deliver a satisfactory inflight experience for passengers,” the airline said in a statement.

UK

The first two cases have been confirmed in the UK. In a statement, England’s Chief Medical Officer Chris Whitty said: “We can confirm that two patients in England, who are members of the same family, have tested positive for coronavirus. The patients are receiving specialist NHS care, and we are using tried and tested infection control procedures to prevent further spread of the virus.”

US

The US Department of State last night issued a Level 4 (‘Do not travel’) Travel Advisory relating to China.

“Do not travel to China due to novel coronavirus first identified in Wuhan, China. On January 30, the World Health Organization has determined the rapidly spreading outbreak constitutes a Public Health Emergency of International Concern. Travellers should be prepared for travel restrictions to be put into effect with little or no advance notice. Commercial carriers have reduced or suspended routes to and from China,” the advisory read.

The US action seems to fly in the face of the World Health Organization’s (WHO) recommendations, contained in its statement last night. The WHO said: “The Committee acknowledged that, in general, evidence has shown that restricting the movement of people and goods during public health emergencies may be ineffective and may divert resources from other interventions. Further, restrictions may interrupt needed aid and technical support, may disrupt businesses, and may have negative effects on the economies of countries affected by the emergencies.

“However, in certain specific circumstances, measures that restrict the movement of people may prove temporarily useful, such as in settings with limited response capacities and capabilities, or where there is high intensity of transmission among vulnerable populations.

“In such situations, countries should perform risk and cost-benefit analyses before implementing such restrictions to assess whether the benefits would outweigh the drawbacks. Countries must inform WHO about any travel measures taken, as required by the IHR. Countries are cautioned against actions that promote stigma or discrimination, in line with the principles of Article 3 of the IHR.”

The scale of the outbreak at 9.30pm (EST) on 30 January, according to John Hopkins University (click to enlarge)

International

The Emergency Committee of the World Health Organization held today agreed that the novel coronavirus outbreak now meets the criteria for a Public Health Emergency of International Concern (PHEIC).

The Committee emphasised that the declaration of a PHEIC “should be seen in the spirit of support and appreciation for China, its people, and the actions China has taken on the frontlines of this outbreak, with transparency, and, it is to be hoped, with success”.

In line with the need for global solidarity, the committee felt that a global coordinated effort is needed to enhance preparedness in other regions of the world that may need additional support for that.

China/International

The offshore renminbi dropped below the 7 RMB to the dollar mark for the first time this year today, returning to similar levels witnessed in early to mid-December, writes The Moodie Davitt Report Senior Retail and Commercial Analyst Min Yong Jung.

Investors are positioning themselves ahead of the World Health Organization’s likely decision (expected tonight Switzerland time) to declare the latest outbreak an international public health emergency. News of the fast-paced spread of the virus has deterred investors from buying the Chinese Yuan.

Meanwhile, Taiwanese traders have returned to action following time off from the Chinese New Year holiday. Financial markets in Taiwan have been closed since 20 January and traders were actively selling in today’s trading session, resulting in the steepest one-day fall of the benchmark index, which slumped -5.75%.

The electronics sector underperformed the index, declining -5.99%, with investors anticipating production disruption as a result of the coronavirus.

International

Tax Free World Association President Alain Maingreaud says the coronavirus outbreak is having a “significant short-term impact” but he is hopeful of a rapid return to normal trading conditions once it is contained.

In a statement, Maingreaud also highlighted the resilience of the travel retail industry when presented with such challenges, and said that preparations for upcoming events – including TFWA Asia Pacific, which was cancelled in 2003 as the SARS crisis deepened – continue as normal.

Maingreaud’s full statement reads: “The situation in China is a cause for great concern, both at a business level, but of course most importantly on a personal level for those who have been affected by the coronavirus outbreak.

“Preparations for our future events, including TFWA Asia Pacific Exhibition & Conference, continue”

“An issue that affects China, one of the most important markets in our industry, will clearly have an impact across the business. Our colleagues in China and those catering for Chinese travellers around the world are trading in very difficult circumstances and we stand with our industry colleagues.

How global duty free sales from 1984-2017 have been impacted by – and rebounded from – external crises; Chart from a TFWA presentation in Cannes, October 2018; figures courtesy of Generation Research; Click to enlarge

“The resilience of our industry has been tested many times, and while this outbreak is clearly having a significant short-term impact, we remain hopeful of a rapid return to normal trading conditions once the outbreak is under control. We must be optimistic that, given the resources available, the relevant authorities will find ways to contain the virus.

“We are working closely with other trade bodies and our business partners to review the situation on a daily basis, and in the meantime preparations for our future events, including TFWA Asia Pacific Exhibition & Conference, continue.”

Italy

Local media Wanted in Rome reports the cruiseship incident

Over 6,000 passengers and 1,000 crew members are being held in port onboard the Costa Smeralda on fears that a 54-year-old woman from Macau and her travelling companion have the coronavirus. The vessel and its passengers are in Civitavecchia port, a coastal town northwest of Rome.

International

The World Health Organization (WHO) is once again meeting to decide whether to declare the outbreak an emergency of international concern. After a two-day deliberation last week, the WHO stopped short of making the declaration but emphasised the fluidity of the situation.

Philippines

The first case in the Philippines has been announced by the World Health Organization.

India

The country’s first confirmed case of novel coronavirus has been reported. The patient, a student of the Wuhan University, is stable and in isolation at a hospital in Kerala, the Health Ministry said. [Source: Economic Times]

China

While China has over 7,700 confirmed cases,  there are only 68 cases in other countries, less than 1 percent of the total reported worldwide, Global Times noted, citing an expert from government agency, the Centers for Disease Control and Prevention.

In an encouraging development, the Wuhan Institute of Virology under the Chinese Academy of Science has listed some medicines that can effectively curb the novel coronavirus at cellular level. Results have been provided to the Hubei provincial headquarters, which is leading the battle against the virus.

Any medical breakthroughs can’t come soon enough. As of 07:47 Beijing time, 7,711 cases of novel coronavirus had been confirmed in China, with 170 deaths. 124 patients have recovered. [Source: Global Times]

This real-time tracking map from Johns Hopkins University’s Center for Systems Science and Engineering shows the spread of novel coronavirus across the world

Finland

The coronavirus outbreak has spread to Finland with the first confirmed case. Finnish media Uutiset said that the individual is a Chinese tourist from Wuhan. The 32-year-old woman is being treated in Lapland Central Hospital in Rovaniemi.

China

The number of confirmed cases of novel coronavirus had reached 6,078 nationwide as at 18:00. Among those, 132 have died and 115 have been discharged from hospitals. [Source: Global Times, Xinhua]

International

LVMH Moët Hennessy Louis Vuitton CFO Jean-Jacques Guiony was asked about the impact of the coronavirus outbreak on the company during the earnings call for the luxury products group’s financial results for 2019.

Guiony emphasised that, while it is too early to assess the outbreak’s impact on business, it was important to “analyse the situation calmly” and “not panic”.

LVMH’s teams in China, Guiony continued, have reported that the virus does not appear to be as aggressive as SARS and that the Chinese government has reacted “very strongly” to the outbreak. He added that the LVMH teams in China were predicting the situation to be partially resolved during March or towards the end of March.

“If it lasts a couple of months, or if it’s resolved over the next two, two and a half months, then it won’t be that bad… if it were to last two years, it would be a totally different matter,” Guiony added.

South Korea

There has been a quiet atmosphere in South Korean duty free stores today – a world away from the usual scenes of hustle and bustle in the industry’s largest market. However, on this occasion at least, the coronavirus was not to blame; it is the Lunar New Year.

The Lunar New Year festive period typically results in a -20% week-on-week decline in sales in South Korea’s duty free market with resellers back in China to enjoy time off with family and relatives. Lotte Duty Free confirmed that the Lunar New Year period is yielding a similar performance this year.

The decision to extend the holiday period to 3 February is keeping resellers away from Korean duty free stores for longer.

The continued suspension of packaged tours to Korea will also affect the duty free market and the impact will be felt more severely than before, according to The Moodie Davitt Report’s Senior Retail and Commercial Analyst Min Yong Jung. Read his analysis here.

International

GlobalData has added a note of caution to its estimate for airport sales in 2020.

The data analytics company has estimated global airport retail sales will reach US$48.2 billion in 2020, a +6.1% year-on-year increase.

Adding a note of caution, GlobalData Principal Analyst Honor Strachan said: “The prevention of travel for Chinese consumers will impact the performance of airport retail worldwide. Over the last few years airport retailers, especially those in Europe, have tailored their propositions, integrated Chinese payment solutions and invested in Mandarin-speaking staff to target Chinese passengers and maximise sales growth opportunities.”

GlobalData is forecasting Asia Pacific will contribute 45.1% of global airport sales this year, with sales in the region rising +8.4% year-on-year to US$21.7 billion.

“If outbound tourism from China suffers as a result of the coronavirus, airport operators and retailers must adapt their strategies to target other passengers,” Strachan added.

China (Macau)

Visitor numbers have collapsed, plummeting -69% in the first four days of the Lunar New Year festive period. Arrivals from the Mainland were down by over -75%.  Travel retailers, such as DFS, and the closely related gaming, hotel and restaurant sectors, are all reeling from the downturn [Source: Macau Daily Times]

DFS declined to comment but it is understood that its stores are still open, in close discussion with the respective landlords. Like all affected travel retailers, DFS will be working hard to protect its staff and customers.

China yesterday announced a temporary suspension of the Individual Visitor Scheme (IVS) to Macau. Sources say that 47% of Mainland visitors to Macau arrived on IVS last year. With the group tour business already suspended, that has immediate and stark repercussions for Macau’s economy.

Source: Macau Government Tourism Office

With China Duty Free Group forced to close its doors at the CDF Mall in Haitang Bay last Sunday; and DFS Group’s modern-day commercial heartland of Macau set to grind to a near or actual halt, these are grim days for the travel retail community. Hong Kong, already suffering from the effect of sustained social unrest, will be further affected by the closure of the main borders with Mainland China from tomorrow.

The home page of Macau Daily Times (and the photograph of empty streets) tells a stark tale

UAE

The first cases in the Middle East have been confirmed, with the Ministry of Health & Protection in the UAE announcing that a family of four has been infected. The statement added that the general health situation “is not a cause for concern” and that the Ministry advises “all citizens and residents to adhere to the general health guidelines”.

International

The next few weeks will be critical in determining the extent of the spread of the coronavirus from heightened travel during Lunar New Year.

The Moodie Davitt Report’s Senior Retail and Commercial Analyst Min Yong Jung has written an insightful analysis of the potential impact of holiday travel, using South Korea as a case study, in an article you can read here.

India

The Ministry of Health is advising travellers to refrain from travelling to China.

UK

British Airways has suspended flights to and from Mainland China as the coronavirus outbreak worsens. This comes as the UK Foreign & Commonwealth Office advised against all travel to Hubei Province and all but essential travel to the rest of Mainland China.

China

China is likely to have a vaccine for the novel coronavirus for public use within three months. That will include a month and a half of development and a similar period of testing, according to Li Lanjuan, an academician of the Chinese Academy of Engineering, Global Times reports.

1,459 new cases of coronavirus and 3,248 suspected cases, including one in Tibet, were reported across China yesterday alone as the spread of the virus accelerates. The total number of confirmed infections reached 5,974, with 1,239 patients in critical condition. The death toll has reached 132 while 103 patients have recovered. [Source: Global Times]

China/International

As Chinese shoppers alter their travel plans and stay at home to avoid infection, many luxury market players — including luxury groups, Chinese brands, and ecommerce companies — have decided to make generous contributions, writes The Moodie Davitt Report business information partner Jing Daily.

International luxury group LVMH announced on 27 January 27 that it would donate nearly US$2.3 million (RMB16 million)to the Chinese Red Cross Foundation to help with a medical supplies shortage in Wuhan. The group also helped to gather much-needed supplies for China from France and throughout Europe with the assistance of the Red Cross. This news was shared by many LVMH employees in China and garnered positive reactions from fashion insiders.

LVMH’s rival luxury group Kering posted a donation of US$1.1 million to the Red Cross in the heavily impacted province of Hubei. The donation will be used for front-line prevention and control work (including care for hospital medical staff and patients) as well as training and public health education. International beauty groups L’Oréal and The Estée Lauder Companies pledged US$720,000 and US$300,000 respectively to help China  fight the virus.

Beauty brand Perfect Diary is broadcasting safety recommendations, and intimate wear company Neiwai posted a message reminding its fans to stay healthy and strong on WeChat.

From big donations to small messages, brands chose to be sensitive to their consumers during this crisis rather than push out promotional messages. “I personally find it tone-deaf to push coupons or remain silent during these times of crisis,” said Dao Nguyen, founder of Essenzia, a consultancy for beauty and fragrance marketing strategy in China. “I am not sure if this is a lack of awareness or reactivity?”

In return, fans responded positively to brands’ heartfelt messages. “What Perfect Diary did is quite moving, they are the first brand I saw publish any safety guide for their fans,” commented one WeChat user named Aaliyah. “No wonder Estée Lauder is my favourite brand,” wrote Annabelle Du under the group’s donation announcement.

These are the kinds of organic, positive impressions that can’t be bought with a marketing budget or advertising money.

International

A scientific race to find a vaccine for the virus is underway, writes The Moodie Davitt Report Senior Research & Commercial Analyst Min Jon Jung. Here is a roundup of key breakthroughs so far.

January 10: Chinese scientists posted a complete genome of the coronavirus.

January 28: Hong Kong University Professor Yuen Kwok-yung was successful in producing a vaccine but testing on animals will take months and clinical trials at least another year.

January 29: Peter Doherty Institute for Infection and Immunity in Australia successful in recreating virus outside of China.

The joint global effort may help to shorten the time required to develop a successful vaccine, but the development is both expensive and time-consuming. The vaccine for the SARS virus was developed 20 months after the viral genome was released and the outbreak was contained with public health measures before the vaccine was ready.

Dr Paul Stoffels, Johnson & Johnson’s chief scientific officer, estimated it could take eight to 12 months before his company’s vaccines reach human clinical trials.

The scale of the outbreak at 11pm (EST) on 28 January, according to John Hopkins University (click to enlarge)

China (Macau)

In a big blow to travel retailers, the government today announced a temporary suspension of the Individual Visitor Scheme (IVS) to Macau. Sources say that 47% of Mainland visitors to Macau arrived on IVS last year.  The FIT business is crucial to both the gaming and travel retail sectors.

China

The Director-General of the World Health Organization (WHO), Dr Tedros Adhanom Ghebreyesus, today met President Xi Jinping of the People’s Republic of China in Beijing. They shared the latest information on the novel coronavirus 2019 (2019-nCoV) outbreak and reiterated their commitment to bring it under control.

The death toll in China has risen to 106, with 4,535 reported cases of the virus.

An historic picture, albeit for the wrong reasons, as Director-General of the World Health Organization (WHO), Dr Tedros Adhanom Ghebreyesus (left), meets President Xi Jinping of the People’s Republic of China in Beijing to discuss the novel coronavirus 2019 crisis

UK

The Foreign Office has warned Britons not to travel to Mainland China, unless their journey is essential.

Thailand

King Power International has taken steps to reassure customers that it is minimising the risk of infection from the coronavirus.

With so many Chinese tourists at the retailer’s airport and downtown stores, some shoppers have expressed concern at the risk of infection. But King Power has taken to Twitter to explain that it has been spraying its stores to kill virus particles. In addition, all public-facing staff are required to wear masks, principally to protect them from exposure. The retailer is also encouraging all customers to wear masks.

King Power has added service points where customers can use hand-washing gels and is ensuring that beauty testers are being regularly sprayed with alcohol and wiped with clean tissue paper.

Click here to read the full story.

International

In the wake of the coronavirus outbreak, our Senior Editor Liam Coleman has looked at the travel retail industry’s traditional strength in dealing with global crises,

“There’s no doubt that travel retail will be hit hard – in terms of passenger numbers, sales and investor confidence – over the coming weeks. Yet if history offers us consolation, it is this: once the worst is over, the bounce back is likely to be swift, strong and sustained,” he says.

Read the full piece with supporting analysis by Generation Research here.

China (Hong Kong)

A number of Hong Kong’s borders with Mainland China will close temporarily from 30 January, Reuters is reporting.

The four land border crossings between the city and the mainland will be suspended, Hong Kong Chief Executive Carrie Lam said. That includes the West Kowloon Station, where Dufry recently secured a concession to operate stores.

Lam added that flights from the mainland to Hong Kong will decrease by -50%, all cross-border ferry services will be stopped and that cross-boundary coach services on the Hong Kong-Zhuhai-Macau Bridge will be suspended.

China (Hainan Island)

China Duty Free Group (CDFG) staff in Hainan are safe and well, a company spokesperson told The Moodie Davitt Report today. As reported, China’s travel retail giant closed its acclaimed CDF Mall in Haitang Bay in Sanya, Hainan Island on Sunday in response to the worsening Wuhan coronavirus outbreak.

CDF Mall is one of Asia’s and the world’s most important duty free locations, generating the lion’s share of the CNY13.61 billion (US$1.98 billion) in sales on the island last year – a whopping +35% year-on-year increase. CDFG has also closed its airport stores at Xi’an Xianyang International and Hangzhou Xiaoshan International airports.

“In order to protect the safety of passengers and staff, the Haitang Bay store and some domestic duty free shops have been closed,” the spokesman said. “The personnel of CDFG are safe at present, please rest assured.”

Japan

Over 20,000 of tour company Kamone’s Chinese package tour customers have so far pulled the plug on all trips to Japan up to 10 February, CNN reported.

China announced a ban on outbound group travel on Sunday.

CNN reports the growing commercial impact from the health crisis

China

China’s death toll from the coronavirus outbreak has soared to 106. The number of confirmed cases in the country has climbed to around 4,500. 26 new deaths were reported on Tuesday. [Source: South China Morning Post]

South Korea

Leading travel retailer Lotte Duty Free, whose business is hugely reliant on Chinese visitors, has taken action to ensure the safety of customers and staff in the face of the coronavirus threat with a series of emergency measures at its stores.

The company has set up an emergency response committee, chaired by CEO Lee Kap, to minimise the risk of the outbreak spreading.

Lotte Duty Free will check all employees for fever daily; it will make masks mandatory for store staff and available for customers; ensure regular disinfection of the stores; and expand the number of hand sanitisers available in its stores. Special leave is also permitted for staff who are pregnant or have underlying illness conditions.

Lotte employees wearing masks on the 12th floor of the retailer’s store in Myeong-dong

Lee Kap said: “Lotte Duty Free plans to take prompt and additional countermeasures, with the highest priority on customer and employee safety.

“We will continue our response through close cooperation with relevant organisations such as the Korea Centers for Disease Control and Prevention, Incheon International Airport Corporation and Korea Airports Corporation.”

Lotte Duty Free staff at the information desk on the tenth floor of the Seoul Myeong-dong store, as increased protections against the virus are introduced

The scale of the outbreak at 8.30pm (EST) on 27 January, according to John Hopkins University (click to enlarge)

Turkey

Turkey has become the latest country to advise its citizens against non-compulsory travel to China. “It is highly recommended that our citizens do not travel to China unless it is compulsory, and if they travel to China, they should stay away from the regions where the incidents are intense, especially in Hubei Province,” a statement from the Turkish Ministry of Foreign Affairs said.

China (Hainan Island)

China Duty Free Group (CDFG) has closed its acclaimed CDF Mall in Haitang Bay in Sanya, Hainan Island in response to the worsening Wuhan coronavirus outbreak.

The popular resort island, birthplace of China’s ‘offshore duty free’ sector, has so far reported 33 confirmed cases, 11 of them in Sanya.

The CDF Mall is one of Asia’s and the world’s most important duty free locations, generating the lion’s share of the CNY13.61 billion (US$1.98 billion) in sales on the island last year – a whopping +35% year-on-year increase.

CDFG said: “Due to epidemic prevention and control, and the need to reduce the concentration of the population and its risk of pathogen transmission, China Duty Free Sanya Duty Free Shop will temporarily close from 4pm today [Sunday 26 January]. The re-opening of the store will be notified in due course, according to the government’s requirements in terms of epidemic prevention and control.”

CDFG pledged to “fully support customers with product refunds” where necessary due to any changes in travel arrangements. It recommended that customers use the official CDFG Sanya Mall online shop during the main store’s closure.

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Health Canada approves updated Moderna COVID-19 vaccine

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TORONTO – Health Canada has authorized Moderna’s updated COVID-19 vaccine that protects against currently circulating variants of the virus.

The mRNA vaccine, called Spikevax, has been reformulated to target the KP.2 subvariant of Omicron.

It will replace the previous version of the vaccine that was released a year ago, which targeted the XBB.1.5 subvariant of Omicron.

Health Canada recently asked provinces and territories to get rid of their older COVID-19 vaccines to ensure the most current vaccine will be used during this fall’s respiratory virus season.

Health Canada is also reviewing two other updated COVID-19 vaccines but has not yet authorized them.

They are Pfizer’s Comirnaty, which is also an mRNA vaccine, as well as Novavax’s protein-based vaccine.

This report by The Canadian Press was first published Sept. 17, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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These people say they got listeria after drinking recalled plant-based milks

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TORONTO – Sanniah Jabeen holds a sonogram of the unborn baby she lost after contracting listeria last December. Beneath, it says “love at first sight.”

Jabeen says she believes she and her baby were poisoned by a listeria outbreak linked to some plant-based milks and wants answers. An investigation continues into the recall declared July 8 of several Silk and Great Value plant-based beverages.

“I don’t even have the words. I’m still processing that,” Jabeen says of her loss. She was 18 weeks pregnant when she went into preterm labour.

The first infection linked to the recall was traced back to August 2023. One year later on Aug. 12, 2024, the Public Health Agency of Canada said three people had died and 20 were infected.

The number of cases is likely much higher, says Lawrence Goodridge, Canada Research Chair in foodborne pathogen dynamics at the University of Guelph: “For every person known, generally speaking, there’s typically 20 to 25 or maybe 30 people that are unknown.”

The case count has remained unchanged over the last month, but the Public Health Agency of Canada says it won’t declare the outbreak over until early October because of listeria’s 70-day incubation period and the reporting delays that accompany it.

Danone Canada’s head of communications said in an email Wednesday that the company is still investigating the “root cause” of the outbreak, which has been linked to a production line at a Pickering, Ont., packaging facility.

Pregnant people, adults over 60, and those with weakened immune systems are most at risk of becoming sick with severe listeriosis. If the infection spreads to an unborn baby, Health Canada says it can cause miscarriage, stillbirth, premature birth or life-threatening illness in a newborn.

The Canadian Press spoke to 10 people, from the parents of a toddler to an 89-year-old senior, who say they became sick with listeria after drinking from cartons of plant-based milk stamped with the recalled product code. Here’s a look at some of their experiences.

Sanniah Jabeen, 32, Toronto

Jabeen says she regularly drank Silk oat and almond milk in smoothies while pregnant, and began vomiting seven times a day and shivering at night in December 2023. She had “the worst headache of (her) life” when she went to the emergency room on Dec. 15.

“I just wasn’t functioning like a normal human being,” Jabeen says.

Told she was dehydrated, Jabeen was given fluids and a blood test and sent home. Four days later, she returned to hospital.

“They told me that since you’re 18 weeks, there’s nothing you can do to save your baby,” says Jabeen, who moved to Toronto from Pakistan five years ago.

Jabeen later learned she had listeriosis and an autopsy revealed her baby was infected, too.

“It broke my heart to read that report because I was just imagining my baby drinking poisoned amniotic fluid inside of me. The womb is a place where your baby is supposed to be the safest,” Jabeen said.

Jabeen’s case is likely not included in PHAC’s count. Jabeen says she was called by Health Canada and asked what dairy and fresh produce she ate – foods more commonly associated with listeria – but not asked about plant-based beverages.

She’s pregnant again, and is due in several months. At first, she was scared to eat, not knowing what caused the infection during her last pregnancy.

“Ever since I learned about the almond, oat milk situation, I’ve been feeling a bit better knowing that it wasn’t something that I did. It was something else that caused it. It wasn’t my fault,” Jabeen said.

She’s since joined a proposed class action lawsuit launched by LPC Avocates against the manufacturers and sellers of Silk and Great Value plant-based beverages. The lawsuit has not yet been certified by a judge.

Natalie Grant and her seven year-old daughter, Bowmanville, Ont.

Natalie Grant says she was in a hospital waiting room when she saw a television news report about the recall. She wondered if the dark chocolate almond milk her daughter drank daily was contaminated.

She had brought the girl to hospital because she was vomiting every half hour, constantly on the toilet with diarrhea, and had severe pain in her abdomen.

“I’m definitely thinking that this is a pretty solid chance that she’s got listeria at this point because I knew she had all the symptoms,” Grant says of seeing the news report.

Once her daughter could hold fluids, they went home and Grant cross-checked the recalled product code – 7825 – with the one on her carton. They matched.

“I called the emerg and I said I’m pretty confident she’s been exposed,” Grant said. She was told to return to the hospital if her daughter’s symptoms worsened. An hour and a half later, her fever spiked, the vomiting returned, her face flushed and her energy plummeted.

Grant says they were sent to a hospital in Ajax, Ont. and stayed two weeks while her daughter received antibiotics four times a day until she was discharged July 23.

“Knowing that my little one was just so affected and how it affected us as a family alone, there’s a bitterness left behind,” Grant said. She’s also joined the proposed class action.

Thelma Feldman, 89, Toronto

Thelma Feldman says she regularly taught yoga to friends in her condo building before getting sickened by listeria on July 2. Now, she has a walker and her body aches. She has headaches and digestive problems.

“I’m kind of depressed,” she says.

“It’s caused me a lot of physical and emotional pain.”

Much of the early days of her illness are a blur. She knows she boarded an ambulance with profuse diarrhea on July 2 and spent five days at North York General Hospital. Afterwards, she remembers Health Canada officials entering her apartment and removing Silk almond milk from her fridge, and volunteers from a community organization giving her sponge baths.

“At my age, 89, I’m not a kid anymore and healing takes longer,” Feldman says.

“I don’t even feel like being with people. I just sit at home.”

Jasmine Jiles and three-year-old Max, Kahnawake Mohawk Territory, Que.

Jasmine Jiles says her three-year-old son Max came down with flu-like symptoms and cradled his ears in what she interpreted as a sign of pain, like the one pounding in her own head, around early July.

When Jiles heard about the recall soon after, she called Danone Canada, the plant-based milk manufacturer, to find out if their Silk coconut milk was in the contaminated batch. It was, she says.

“My son is very small, he’s very young, so I asked what we do in terms of overall monitoring and she said someone from the company would get in touch within 24 to 48 hours,” Jiles says from a First Nations reserve near Montreal.

“I never got a call back. I never got an email”

At home, her son’s fever broke after three days, but gas pains stuck with him, she says. It took a couple weeks for him to get back to normal.

“In hindsight, I should have taken him (to the hospital) but we just tried to see if we could nurse him at home because wait times are pretty extreme,” Jiles says, “and I don’t have child care at the moment.”

Joseph Desmond, 50, Sydney, N.S.

Joseph Desmond says he suffered a seizure and fell off his sofa on July 9. He went to the emergency room, where they ran an electroencephalogram (EEG) test, and then returned home. Within hours, he had a second seizure and went back to hospital.

His third seizure happened the next morning while walking to the nurse’s station.

In severe cases of listeriosis, bacteria can spread to the central nervous system and cause seizures, according to Health Canada.

“The last two months have really been a nightmare,” says Desmond, who has joined the proposed lawsuit.

When he returned home from the hospital, his daughter took a carton of Silk dark chocolate almond milk out of the fridge and asked if he had heard about the recall. By that point, Desmond says he was on his second two-litre carton after finishing the first in June.

“It was pretty scary. Terrifying. I honestly thought I was going to die.”

Cheryl McCombe, 63, Haliburton, Ont.

The morning after suffering a second episode of vomiting, feverish sweats and diarrhea in the middle of the night in early July, Cheryl McCombe scrolled through the news on her phone and came across the recall.

A few years earlier, McCombe says she started drinking plant-based milks because it seemed like a healthier choice to splash in her morning coffee. On June 30, she bought two cartons of Silk cashew almond milk.

“It was on the (recall) list. I thought, ‘Oh my God, I got listeria,’” McCombe says. She called her doctor’s office and visited an urgent care clinic hoping to get tested and confirm her suspicion, but she says, “I was basically shut down at the door.”

Public Health Ontario does not recommend listeria testing for infected individuals with mild symptoms unless they are at risk of developing severe illness, such as people who are immunocompromised, elderly, pregnant or newborn.

“No wonder they couldn’t connect the dots,” she adds, referencing that it took close to a year for public health officials to find the source of the outbreak.

“I am a woman in my 60s and sometimes these signs are of, you know, when you’re vomiting and things like that, it can be a sign in women of a bigger issue,” McCombe says. She was seeking confirmation that wasn’t the case.

Disappointed, with her stomach still feeling off, she says she decided to boost her gut health with probiotics. After a couple weeks she started to feel like herself.

But since then, McCombe says, “I’m back on Kawartha Dairy cream in my coffee.”

This report by The Canadian Press was first published Sept. 16, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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B.C. mayors seek ‘immediate action’ from federal government on mental health crisis

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VANCOUVER – Mayors and other leaders from several British Columbia communities say the provincial and federal governments need to take “immediate action” to tackle mental health and public safety issues that have reached crisis levels.

Vancouver Mayor Ken Sim says it’s become “abundantly clear” that mental health and addiction issues and public safety have caused crises that are “gripping” Vancouver, and he and other politicians, First Nations leaders and law enforcement officials are pleading for federal and provincial help.

In a letter to Prime Minister Justin Trudeau and Premier David Eby, mayors say there are “three critical fronts” that require action including “mandatory care” for people with severe mental health and addiction issues.

The letter says senior governments also need to bring in “meaningful bail reform” for repeat offenders, and the federal government must improve policing at Metro Vancouver ports to stop illicit drugs from coming in and stolen vehicles from being exported.

Sim says the “current system” has failed British Columbians, and the number of people dealing with severe mental health and addiction issues due to lack of proper care has “reached a critical point.”

Vancouver Police Chief Adam Palmer says repeat violent offenders are too often released on bail due to a “revolving door of justice,” and a new approach is needed to deal with mentally ill people who “pose a serious and immediate danger to themselves and others.”

This report by The Canadian Press was first published Sept. 16, 2024

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