Coronavirus: Reputational challenges in the face of an outbreak

February 21st, 2020 | Media

There is no denying the coronavirus outbreak and the subsequent restrictions placed on travel have left markets across the globe reeling. However a groundswell of media attention has arguably exacerbated issues, particularly for those industries on the front-line. We took a look at the impact on three key sectors and the difficulties organisations face in responding to the outbreak.

All eyes are on the airlines

The aviation sector is an obvious casualty of coronavirus. According to the U.N.’s International Civil Aviation Organization (ICAO), there has been an unprecedented reduction in international air travel since the outbreak occurred. Responding to the mass hysteria, governments across the world are imposing travel bans which is resulting in continued cancellations by passengers and airlines being forced to slash hundreds of flights across their networks. This is further exacerbated by the close media focus on these travel bans and the media’s reproduction of emotive content and language highlighting fears and anxieties around air travel. Customers are reportedly voluntarily cancelling flights and booking fewer holidays to destinations beyond China.

The safety of airline passengers and staff has also placed media spotlight on airlines, particularly when passengers take to social media or news outlets to express their panic. United Airlines was forced to respond to criticism over its lack of communication to customers following the quarantining of a passenger on a flight from San Francisco to London. This demonstrates the difficult balance for organisations, having to delicately balance the need to provide transparency on the incident, while also avoiding unnecessary panic.

AAP Image [Darren England]

Restaurants are losing patrons

The local hospitality industry has not only been dealt a blow by a reduction in tourism to Australia; it has also had to contend with misinformation circulating traditional and social media. AAP Factcheck and the ABC’s Media Watch are among those to have debunked false claims regarding food-related contraction, with experts pointing out there is no reason to avoid eating in Chinese restaurants.

Even still, Chinese businesses are suffering immensely. Sydney Chinatown restaurateurs are reporting up to 80% decline in foot traffic, and just last week a much loved Melbourne restaurant Shark Fin House was forced to close following weeks of dwindling patronage, with co-owner Gabriel Chan saying diners have been scared to come to the venue.

Prominent Chinese-Australians are urging Victorians to return to Chinese restaurants abandoned since the coronavirus outbreak, just as they have been asked to take empty Eskies to the state's bushfire-hit regions https://t.co/INRZxQkYTD

— The Age (@theage) February 13, 2020

International students are forced to stay away

Australia’s education sector and universities in particular are facing a significant threat to their business model following the government’s travel ban on Chinese student visas.

In the short term, this has presented a logistical challenge for local universities. More broadly, the reputational impact could be far-reaching. Chinese students already living in Australia have described the ban as overzealous and expressed concerns over continuing to study in the country long-term. Universities have also been forced to dismiss media reports that they are planning to quarantine international students in regional campuses, after Treasurer Josh Frydenberg flagged the possibility on national radio.

Furthermore, the National Tertiary Education Union (NTEU) has raised concern over universities’ confusing responses to and communication about the ban. Some institutions have delayed the start of their academic year, which has also led to further social media backlash from domestic students over the lack of student consultation and concerns regarding a shortened exam preparation period.

Aside from the obvious economic implications, coronavirus has presented serious reputational challenges across a range of industries. It remains to be seen how organisations will navigate these challenges as the virus continues to dominate the media agenda.

All photos supplied by AAP Photos image library.