The worst-hit sectors were real estate and travel and tourism, which plunged 68 per cent each to $34.3 and $10.5 million respectively. Others included the automobile, banking and restaurant sectors, all of which saw spend tumble more than 40 per cent.
While the pneumonia virus is also disrupting other markets such as Singapore, Taiwan and China, the perception remains that Hong Kong is the worst hit.
At press-time, sources said Cathay Pacific was considering grounding its entire fleet, a move that reflected the sharp decline in incoming and outgoing travel. The carrier has also stopped all its advertising and promotional activities. At the same time, the reluctance by local residents to go out is hitting sectors such as retail, restaurants and entertainment venues. MindShare Hong Kong managing director, K.K. Tsang, said that 30 per cent of the agency's clients have postponed their campaigns and warned that the situation could worsen. "Right now we are only talking about postponements. But many campaigns are time-sensitive; if the virus is still with us by mid-May, clients will start to cancel, leading to a bad second quarter," he said.
Other agencies, including Starcom and Euro RSCG, have also reported that clients are delaying their campaigns. Starcom Hong Kong general manager, Mabel Leung, said: "A lot of advertisers are taking a wait-and-see approach. There could be more budget cuts if the sales performance of companies do not improve."
But toiletries and household goods made one of the biggest leaps as locals gave their homes a spring cleaning.
- Additional reporting by Christy Liu.
FEELING THE HEAT: tourism and real estate
Category Apr 1 - 13 Apr 1 - 13 YOY
2002 2003 change
(HKdollars m) (HKdollars m) (%)
LOSERS
Property & Real Estate 108.5 34.3 -68
Travel & Tourism 32.5 10.5 -68
Automobile & Petroleum 25.1 11.9 -53
Banking & Investment 69.4 37.2 -46
Restaurants 48.2 28.9 -40
GAINERS
Telecoms 32.9 34.2 4
Food 58.3 78.2 34
Cosmetics & Skincare 51.8 72.6 40
Entertainment 37.5 54.2 45
Toiletries & Household 76.8 119.5 56
Source: Admango