Severe Acute Respiratory Syndrome (SARS) – a Case Study for Economics Students

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Since February 2003, the World Health Organisation (WHO) has been receiving reports on severe acute respiratory syndrome (also known as atypical pneumonia) from various parts of the world, including Hong Kong. In Hong Kong, a number of health care workers and members of the public have been affected.

Demands for surgical masks surge to a record high. Long queues could be seen outside dispensaries despite the sharp increase in mask prices. Within weeks, different types of masks become available in the market and prices have come down.

The MTRC, KCRC, KMB, Citybus Ltd and New World First Bus Services (Ltd) distributed free face masks to passengers at all stations/designated outlets on a first-come-first served basis. MTRC also gave out free antiseptic warm hand towels to passengers at Central and Jordan stations during evening peak hours on 14 & 15 April. Taxi, public light bus, ferry and non-franchised bus operators have also enlisted in the fight against SARS by pledging to provide a clean and safe environment for passengers.

The Education and Manpower Bureau (EMB) announced on 27 March that all schools would suspend classes for nine days from 29 March to prevent the spread of SARS on school premises. This is later extended to 21 April. On 16 April, the EMB announced that Secondary Three level and above of secondary schools would resume classes on 22 April, whereas classes for other levels of secondary schools, primary and special schools, and kindergartens would resume later.

Beginning in the afternoon of March 29, all passengers arriving in Hong Kong are required to complete a health declaration. On April 10, the Government announced the home confinement requirement for people who had household contacts with patients confirmed to be infected by the disease. They are required to confine themselves to their homes for ten days and are not allowed to receive visitors into their flats.

Grave economic impact of the SARS outbreak can be felt in many sectors. Retail sale is generally down and there is sharp decline in the restaurant and entertainment businesses. Tourism-related businesses are seriously affected. Foreign visitors cancel their trips to Hong Kong, and local demand for overseas trips also declines. Airlines cut flights due to the drop in passenger. Traffic and travel agencies suffer tremendously. Investor outlook on the Hong Kong economy is reflected in plunging stock prices market and property market performance. It is anticipated that unemployment, deflation and fiscal deficit will worsen in the months ahead. On 23 April 2003, the Chief Executive, Mr Tung Chee Hwa, announced measures for relieving the impact of atypical pneumonia on the economy.

　

Useful Websites:

· World Health Organization (http://www.who.int/en/)

· Department of Health (on atypical pneumonia) (http://www.info.gov.hk/dh/ap.htm)

· Hospital Authority (on atypical pneumonia) (http://www.ha.org.hk/sars/sars_index_e.html)

· Food and Environmental Hygiene Department (http://www.info.gov.hk/fehd/indexe.html)

· Education and Manpower Bureau (http://www.emb.gov.hk/index.asp)

· Hong Kong Tourism Board (http://webserv2.discoverhongkong.com/eng/index.jsp)

· Hong Kong Trade Development Council (http://www.tdctrade.com/)

· Consumer Council (http://www.consumer.org.hk/mainmenu/english/eindex.htm)

· Labour Department (http://www.info.gov.hk/labour/eng/home/index.htm)

· Trade and Industry Department (http://www.tid.gov.hk/eindex.html)

· Hong Kong International Airport (http://www.hkairport.com/eng/aboutus/index.html)