Local travel agencies were not pleased by news that a suspected case of bird flu was found in Nanhui District last Friday. Flu fears are scaring away foreign guests.

"Since the announcement, we have had two huge groups from Japan, 1,500 and 800 people each, canceled their reservations," said Wang Zhiwei, vice president of the Shanghai CYTS Tour Corporation, saying it was a big loss to the company.

According to Wang, Japanese tour groups make up the biggest portion of local travel agencies' business around the Spring Festival.

Shanghai airlines Tours International Co Ltd is also suffering as overseas tours cancel their travel plans over fears of bird flu.

"We are really hurting," said Wu Shilin, inbound section president of the company.

"Some of those who have already made plans to come are still coming," said Wu. "But bookings for future visits -- or lack of them -- is what worries me most."

The only good news is that the bird flu outbreak occurred toward the end of the Spring Festival holiday, after many thousands of visitors already came to the city.

"We feel fortunate that the outbreak didn't happen before the Spring Festival," said Yuan Zhuang, a vice president at the Shanghai China International Travel Service Co Ltd.

With the lunar New Year holiday ending, packages to Southeast Asian destinations such as Thailand, Vietnam and Cambodia were discounted. However, they were not well received by locals because of the bird flu outbreak.

About 500 local tourists visited Guangxi Zhuang Autonomous Region during the weeklong Spring Festival holiday, according to the Spring International Travel Service Co, but since then a mere 200 have arranged visits to the region, no doubt because of flu fears after a confirmed bird flu case was reported in the region.

According to Yuan, very few people arranged trips to southeastern Asian countries after the flu reports. Cancellations were common.

Asked whether he reimbursed travel deposits made by those who canceled, Yuan said he returned some but not all.

He added that his company would make full refunds if the Chinese government were to formally forbid citizens from visiting the affected countries.

(eastday.com February 4, 2004)