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Thu, Mar 27, 2003 - Page 12 News List

Disease poised to hurt Asian hotel operators

FEWER BOOKINGS Analysts say the industry will be hit hard as consumers opt to stay at home rather than risk coming in contact with a deadly respiratory disease

BLOOMBERG , SINGAPORE

Asian carriers have been stricter with passengers, hurting travel. Hong Kong's Cathay Pacific Airways Ltd and Singapore Airlines Ltd said they will turn away passengers with symptoms.

In Hong Kong, where tourism also makes up a 10th of the economy, 10 people have died and about 290 have been affected.

Hotels were further hit after authorities said they traced early victims of the respiratory disease to the ninth floor of a hotel in downtown Kowloon.

Throughout the city, surgical masks are increasingly being worn, especially in doctors' offices. Some expatriate families have pulled their children out of school temporarily on concern that the disease may spread -- and France, Italy and Argentina have withdrawn from an annual rugby tournament scheduled for this weekend.

"If the flu continues and escalates, it will be a killer" for tourism, said Marc Faber, managing director of Marc Faber Ltd, which has been managing investments in Asia for more than 20 years.

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