Asia’s airline and hospitality industries are suffering the most because of COVID-19 (coronavirus) and now fears of massive layoffs and bankruptcies are sending stock markets worldwide tumbling.

In Hong Kong, for example, which welcomed 90,000 overnight visitors daily at this time last year, has seen that number trickle down to just 3,000 visitors a day.

“The situation (in Hong Kong) is beyond a fight for market share, it’s now about survival,” one industry source told TraveLife.

The situation was made even worse this week when the Hong Kong government announced a $4 billion (U.S.) coronavirus relief package but the hotel industry was excluded from that aid.

Some Hong Kong hotels have been forced to close while others are making staff take unpaid leave until the situation stabilizes, which could take months.

“This, on top of the pro-democracy issues we were forced to contend with last year will spell the end for many hotels on Hong Kong,” said the source.

Singapore, which has seen its tourism numbers drop to all-time record lows, introduced a similar aid package this week – worth $3 billion – but hotels were included. On top of that, Singapore is reducing property taxes for hotels and businesses by as much as 30 per cent and is dropping or adjusting its income tax levels downwards to help employees.

Airline stocks across Asia, meanwhile, are falling faster than the Canadian dollar this week - China Eastern Airlines and China Southern Airlines saw their stock value fall over 6.5 per cent each while other regional carriers, like Hong Kong-based Cathay Pacific Airways saw it shares decline by over 4 per cent while Japan Airlines slipped 2.97 per cent and Australia’s Qantas fell 1.7 per cent.

In mainland China, hotels in major cities like Beijing, Singapore and Macau are virtually empty and staff have been told to stay home and many are not getting paid.

As the virus spreads, the results for the hospitality industry worldwide could be terminal. That’s bad news for the 319 million people who work in that sector worldwide and the economies which count so heavily on the income the industry produces.