COVID-19, known to most of the world as the new coronavirus, has managed to completely take over the lives of individuals, governments and business everywhere. Just one month after the first cases were identified in Wuhan, China, the World Health Organization declared the rapid spread of this strand of coronavirus, a viral flu-like disease, a global emergency. As of this writing, more than 92,000 people have been diagnosed with the virus, and 3,200 people have died.

Though most of the cases have still been centered in Asia, the disease is now quickly spreading through many more countries. Last week, the CDC issued a statement warning the US that the new coronavirus would soon spread throughout our communities. So far, about 150 cases of the disease have been reported in the US, but that number is expected to grow rapidly via community spread. The biggest impact will be on the lives of the people infected, and we know many outlets will continue to cover the tragic deaths and health concerns related to the virus. Additionally, the global nature of the disease has already started to create ripple effects on economies and events around the world. If we don’t get it under control, how will it affect our business landscape, from international corporations to small local businesses?

Can Coronavirus Be Contained?

As more cases develop in the US, the CDC has started encouraging people to prepare for an increased threat of the coronavirus. They warned that businesses and schools may be encouraged to temporarily close in the near future. Despite these continued warnings, President Trump assured the public last Monday that “the coronavirus is very much under control in the USA.” The administration created a task force dedicated to containing the virus and placed Vice President Pence in charge of the effort. Though the president expressed his confidence in Pence’s abilities, others have debated whether or not Pence will be able to contain the disease’s spread. Read more about Indiana’s HIV outbreak during Pence’s tenure as governor here.

A Global Threat to Travel

Because of its rapid worldwide spread, the new coronavirus has raised concerns for the travel and tourism industries and may have ramifications on major international events across throughout the year. Countries hit hardest by the outbreak, including China and Italy, have seen drastic declines in attendance at festivals, theme parks, churches and temples. Some of the most popular attractions in the world, including the Louvre in Paris and Hong Kong Disneyland, have been closed indefinitely. And because more than 50 million people are quarantined in China, many potential tourists haven’t been able to travel to other countries, either. Thailand, a popular vacation destination for Chinese tourists, predicts they will lose as much as $1.5 billion in revenue as a result of reduced travel.

In addition, the International Olympic Committee is currently considering whether they will cancel this summer’s Olympic Games in Tokyo. Japan has seen steady increases in the number of new coronavirus cases, and recently closed all schools until April in an attempt to slow the disease’s spread. Because athletes and visitors from nearly every country will be in attendance, there’s a risk that the Games could further spread the virus and turn it into a pandemic.

However, canceling an event as large as the Olympics would have major ramifications. The Games have only previously been cancelled during times of war, and in 2016, the Rio Games were held as scheduled despite concerns over the Zika virus. Because the Olympics are only a little more than four months away, calling them off now could create significant economic issues for Japan and the sponsors of the Games. Japan has already spent as much as $25 billion in preparation and are relying on revenue from guests and businesses to make back their investment. Brands have also already spent more than $1 billion in TV spots and related advertising for the 2020 Games, while attendees have secured event tickets and airline flights. Japan stated last week that they have no plans to alter the Olympics schedule, nor do they have a backup plan if the Games do get cancelled.

Backlash on Business

The travel industry isn’t the only business sector struggling in the face of the coronavirus. Last month, Apple, Starbucks and other brands temporarily closed their retail locations in Mainland China and have only recently re-opened select stores. The virus has already affected Apple’s sales this year, as the tech giant announced they will come in under their sales estimate for the first quarter of 2020. The store closings also delayed sales of nearly one million iPhones throughout China.

Countless other companies are feeling the impact of the disease, as well. The stock market posted its worst weekly decline since 2008, and the US market alone has lost $4.3 trillion so far. In fact, the only stocks doing well include brands like Netflix and Peloton, who boast products you can enjoy from the comfort of your home.

Clearly, the market anticipates consumers will stay home to protect themselves against the coronavirus spread. As people begin to avoid public areas, it’s likely that retail stores and restaurants will see heavy decreases in foot traffic and sales. Even if consumers continue to make online purchases, they may have to wait to receive their products. Many brands rely on Chinese companies for their supplies and have experienced delays receiving shipments as a result of the coronavirus. We may also see small businesses follow the lead of large companies like Twitter, which has encouraged its employees to work from home. For many of these companies, this will be a test to show whether they value employee health and wellness more than overall productivity.

As the disease continues to make its way through communities, we’ll watch for developments on how it will impact citizens, events, businesses and advertisers. If you are experiencing the symptoms of the new coronavirus, including coughing, fever and difficulty breathing, avoid public areas and call your healthcare provider. Consult the CDC for tips on how to prepare for and take action against coronavirus.