China’s Trip.com CEO cuts salary to zero as coronavirus slams travel

The coronavirus, also known as Covid-19, has killed more than 3,800 people so far, and sickened nearly 110,000 around the world.

The pandemic has dealt a massive blow to the travel and tourism industry. Demand for travel is plummeting, as companies curb business trips, airlines slash flights to affected areas and organizers cancel major events such as South by Southwest, Mobile World Congress and the Geneva motor show.

In China, the travel industry is also suffering from government policies. In an effort to contain the virus, domestic and outbound group travel packages have been banned since late January.

The company will report fourth quarter earnings next week, where executives will be expected to update investors on the impact of the coronavirus on Trip.com’s business.

Sun was confident that pent-up demand will drive recovery for Trip.com once the outbreak is over.

But economists at Tourism Economics said that the industry won’t fully recover until 2023, and other experts point out that some activities will be lost forever.

Consulting firm McKinsey said in a report this month that aviation, tourism and hospitality sectors will see lost demand that “is largely irrecoverable.”