Disease and Financial Crisis

Post date: Jun 12, 2012 2:47:03 AM

(Originally published in 2009)

The world is faced with a double whammy of financial crisis and H1N1 flu epidemic.

Many companies all over world are cutting back expenses on business travel, incentive tours and global financial crisis. Perhaps some companies need to tighten their belt due to the credit crunch, while others deem it politically correct to appear frugal against a macro-backdrop of overall gloom and unemployment. For companies that can afford it, and can manage its public relations well, please do continue to spend on incentive travels and conferences. Internally, it makes perfect sense to reward staff who achieve their performance goals despite the current financial crisis. Externally, every corporate event held creates X number of jobs in the event destination and hence it goes a long way in maintaining employment, business activities and supporting economy as a whole.

The H1N1 flu is a different story. Spreading from Mexico to many parts of the world, with cases of death resulting from the flu, this situation could cripple the travel and MICE industry. Traveling and large group gatherings are not encouraged across the globe. Asian countries, still fresh from memories of the Sars outbreak in 2003, understandably took strong measures to mitigate the virus. Although there is no outright ban on travel, the hassle of health checks and possible quarantine would make companies think twice about traveling and holding events overseas.

Fortunately, the H1N1 virus now appears to be less deadly than originally expected, while there has been more optimistic news on the health of the world economy. Although the road ahead continues to be tough, perhaps companies should look on the bright side - what better time to negotiate and lock-in contracts with hotels and suppliers than now?