Few people went abroad or returned to their hometowns during the May Day holiday -- one of the three "Golden Weeks" in China.

It followed the decision by the central government to cut the traditional week-long break to five days this year in an effort to contain the disease.

Many people opted to stay at home rather than dine in restaurants or party in clubs.

The country's tourism industry generated 33.1 billion yuan (US$4 billion) in revenue during the May Day holiday last year from 87 million domestic travelers.

This year, however, most overseas tourists cancelled their travel plans to the country and Chinese tourist groups were refused entry to tourism destinations in other countries from April.

That explains why the occupancy rate of rooms in leading Beijing-based hotels remains around 10 per cent.

The damage to business caused by SARS has been extreme and it has led to an analysis of the current development of the industry.

China's tourism sector has achieved great things in the past few years and almost every province sets it as a pillar industry for improving the local investment climate and increasing the employment rate.

But people rarely understand that a sector with higher profits must share appropriate responsibility and is faced with higher risks.

Most travel agencies, hotels and related service industries appeared helpless in the face of the SARS crisis and they had to make employees redundant.

"Tourism is an industry whose operation is filled with many uncertain factors and faces many threats, both natural and artificial," said Zhang Guangrui, professor and director of the Tourism Research Center of the Chinese Academy of Social Sciences.

"When designing products for tourists and drafting an overall program for tourism development, policy-makers and managers should consider these uncertain factors, because safety is the most crucial thing in this sector."

Past experience around the world suggests outbreaks of infectious diseases are not the only uncertain factor that can damage the tourism industry.

The Bali bombing led to a dramatic fall-off in travel to Southeast Asia. The Iraq war also hurt the industry and bombings in Indonesia have further served to undermine confidence in tourism.

So tourism administrations and companies must set up a perfect emergency system to develop contingency plans against unforeseen events.

There is an old Chinese saying: To be alert to danger in times of peace means mental preparedness, which in turn ensures security.

Some experts said the fallout from the crisis could provide a helpful lesson to managers in the tourism industry.

They also suggested that whatever China tries to do, it must adopt a practical and realistic approach that is free from any exaggeration.

"The safest tourism destination in the world" is the target.

The central government said it would waive or cut administrative fees on SARS-hit businesses such as tour groups, hotels and restaurants.

China National Tourism Administration and the Ministry of Finance decided to remit part of the cash deposits for service quality to travel agencies in an effort to revive business.

These measures are based on facts and welcomed by the sector's employers and employees, said Guo Wenbing, vice-manager of the Marketing Department of China International Travel Service (CITS).

Guo said his colleagues are resuming the normal travel schedule for domestic tourists as the SARS crisis appears under control in Beijing and neighboring provinces although the government repeatedly calls for vigilance regarding prevention and control of the virus.

From late April, demand from tourists was so low that most CITS employees were allowed to stay home but all of them returned to their offices last week.

The CITS is the country's leading travel agency with businessmen forming the bulk of its clients.

Guo said he was very confident about the future of the country's tourism as long as the nation remains closely united to overcome SARS as soon as possible.

"Maybe it is a good thing, to slow down a little and allow the Chinese to address the issues of sustainable development and add a degree of transparency," said Sarasin Viraphol, vice-chairman of Charoen Pokphand Group, a Thai agri-business conglomerate and one of the largest investors in China.

(China Daily June 26, 2003)