Metabiota Reveals Top 3 Industries that will be Impacted by Epidemics in 2019
SAN FRANCISCO, Jan. 9, 2019
SAN FRANCISCO, Jan. 9, 2019 /PRNewswire-PRWeb/ -- Today, Metabiota, the pioneer in epidemic risk modeling, is unveiling its predictions for the industries that are most likely to be impacted by a health crisis in the year ahead. According to a recent survey by North Carolina State University's Enterprise Risk Management (ERM) and management consulting firm Protiviti, board members and C-suite executives want to devote additional time or resources to risk management efforts in 2019. Epidemic risk is a very real threat facing today's companies. In fact, in the last decade, there have been over 400 high priority human disease outbreaks- and those have impacted the stability of economies and corporations everywhere. The Zika virus alone may end up costing Latin America and the Caribbean up to $18 billion, and the South Korean MERS outbreak in 2015 caused a 40 percent drop in tourism, costing the country an estimated loss of $900 million in revenue.
"As we get better at understanding how outbreak events have, and could, play out, we also are getting better at translating that information into business impacts," said Dr. Patrick Ayscue, director of epidemiology at Metabiota. "Leveraging Metabiota's unique Pathogen Sentiment Index that can estimate public fear and potential impact of these events to businesses, we're able to help companies, economies and the world become more resilient to the devastating financial setbacks related to outbreaks. And we are now realizing the full potential of these capabilities and the industries they are ready to protect."
Metabiota's research shows that outbreaks like acute flaccid myelitis (a "polio-like" illness), Zika, Avian Influenza and even seasonal influenza are not one-off scenarios but, in fact, illustrate distinct patterns. To that end, infectious diseases can and should be insured so that, like natural disasters, resources, financing and other support can be established to offset the impact. Working in collaboration with MunichRe and Marsh & McLennan, Metabiota is delivering a comprehensive methodology for quantifying the potential impacts of epidemics so that the risk can be understood and policies can be delivered to protect countries and corporations from financial setbacks related to a health crisis.
Because of Metabiota's purview into the intersection of health events and risk management, the company is revealing its predictions for the industries that are most in danger of business interruption and financial loss, as a result of an epidemic.
- The Travel & Tourism Industry: The travel and tourism industry is likely the hardest hit when it comes to an outbreak. The hospitality industry relies on a traveler's sense of security. Unfortunately for hotels, individuals respond negatively to outbreak headlines and travel warnings by cancelling bookings and travel plans. Even in contained outbreaks with minimal risk to travelers, historical evidence has shown repeatedly that travelers significantly reduce their travel to affected locations often months after an event has occurred. Metabiota has developed solutions to cover business interruption due to a traveler's fear of traveling rather than hotel guests becoming sick themselves.
- The Professional Sports Industry: At the onset of an infectious disease event, people tend to stay away from large venues and the economic impacts can stretch far beyond ticket sales. When fans don't attend games, they don't purchase food, beverages, or merchandise, often substantial revenue lines for the sports industries. If an outbreak were to occur during the playoff or all-star games, an even larger impact could be felt league-wide. Fans are the fuel for the professional sports industry and become absent in the event of an outbreak. During the 2003 SARS outbreak, the Toronto Blue Jays' parent company spent roughly$700,000 by offering $1 tickets to worried-well fans. Players also react to outbreaks as seen in 2016 when MLB games were moved out of Puerto Rico due to player's concerns about the Zika epidemic.
The Entertainment Industry: Casinos, theme parks, convention centers and to some extent, shopping malls - local tourism fuels local economies and drops when an epidemic strikes. Leveraging historically observed drops in hotel occupancy rates due to the 2003 SARS outbreak data, Metabiota's insights show that an epidemic of the same magnitude could cost just one hotel casino millions of dollars in lost gambling revenue. Additionally, during the 2015 MERS outbreak, sales from local department stores dropped by 12.4% and online retail sales increased as the outbreak prevented customers from going to public establishments. Any industry that depends on consumers' sentiment is at risk for economic loss due infectious diseases.
For more information on Metabiota and its approach, visit http://www.metabiota.com.
Metabiota is the pioneer in comprehensive risk analytics that help organizations and countries build resilience to epidemics and protect global public health. Built on a strong foundation of scientific expertise, including a worldwide network of on-the-ground experts, Metabiota delivers actionable, data-driven analytics to help countries and corporations mitigate complex health issues. With a strategic global presence and sustained partnerships, Metabiota's agile approach helps identify, analyze and transfer the risk associated with biological threats. The company's international footprint includes operations in nearly 20 countries and offices in San Francisco, Canada, Cameroon and the Democratic Republic of the Congo. For more information, visit http://www.metabiota.com.