California travel, tourism industries brace for impact of coronavirus outbreak

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SACRAMENTO, Calif. (KTXL) — Stock markets are falling around the world after the number of coronavirus cases surged in Italy and South Korea.

From his third-floor office at Sacramento State’s Tahoe Hall, assistant economics professor Raul Tadle said he knows what happened Monday in the markets cannot be quantified solely with charts and graphs.

“Stock markets, there’s a rational side and there’s also the emotional side, I guess is what we can think of it,” Tadle told FOX40. “So yeah, there’s two aspects and the emotional side is really hard to gauge.”

The COVID-19 virus has devastated China and is now touching global markets with its uncertainty — something that may only intensify.

“In terms of our own production, we have also slowed down because we look at the forecast of what could potentially happen in the future,” Tadle said. “If we’re expecting some sort of slowdown, manufacturers when they’re planning out their production, if they look at a slowdown then they’re also going to cut some of their production.”

Moves based on that mentality could cut across a swath of industries.

Visit Sacramento told FOX40 the coronavirus outbreak has not yet affected the flow of travel and tourism to the city. But looking at the statewide picture, the industry is braced for a possible change.

Last year, travelers from China spent $4 billion in the Golden State.

While no one is willing to estimate how much that might drop as the virus wears on, Visit California is looking forward in another way. Directors told FOX40, “Experience with other outbreaks shows that demand to travel will accelerate rapidly when the event ends.”

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