2 COVID-19 Cases Confirmed in Canada
Fauci: "2 Weeks Needed to Gather Omicron Data"
Concerns Over Setback in Economic Recovery
Year-End Consumption and Travel Demand Unavoidably Affected
[Asia Economy reporters Yujin Cho and Hyunui Cho] As Omicron variant cases have been confirmed in Canada, there are forecasts that the United States will soon be breached as well. It is expected to take more than two weeks to identify the new variant virus, spreading the fear of an 'Omicron pandemic' even further. With projections that the economic shock caused by Omicron will be greater than that of the Delta variant, companies are also on high alert.
On the 28th (local time), according to AP News and others, two Omicron cases were confirmed in Canada. According to Canadian health authorities, these individuals are travelers who entered from Nigeria in Africa and are currently quarantined in Ottawa. So far, countries where Omicron infections have been confirmed include a total of 14 countries such as South Africa, the origin, Botswana, the United Kingdom, Germany, Italy, the Czech Republic, Austria, Belgium, Australia, Israel, Hong Kong, the Netherlands, and Denmark.
Although no Omicron infection cases have been reported in the United States yet, it is considered a matter of time before Omicron lands in the U.S. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases (NIAID), said at the White House while briefing President Joe Biden about the Omicron variant, "It would not be surprising if the Omicron variant is already in the United States," adding, "It will take roughly more than two weeks to obtain definite information on Omicron's transmissibility, severity, and characteristics." The U.S. administration plans to announce additional measures against Omicron on the 29th.
Information on vaccine effectiveness and fatality rates regarding Omicron is still limited, making it difficult to predict the direction, but with forecasts that it will be stronger than the Delta variant in early May, companies are also on high alert.
On the same day, The Wall Street Journal (WSJ) reported that executives of major U.S. retail companies have begun assessing the risks that the Omicron variant poses to business operations. Especially retail, distribution, and airline companies, which were hit hard by the COVID-19 crisis but recently had growing expectations for market recovery, are preparing to switch back to emergency management systems.
Dave Clark, CEO of Amazon's retail division, said in an interview with CBS that the spread of Omicron will be challenging amid the current labor shortage and that it is inevitable that year-end consumer demand will be affected. He stated, "Since information about the new variant is still being clarified, it is uncertain whether it will impact year-end peak consumer sentiment."
Brian Philco, CEO of Jetco Delivery, a logistics company headquartered in Texas, said, "It is currently impossible to judge how threatening this variant will be or how severe the impact will be," adding, "We are monitoring U.S. health authorities' guidelines and have formed an internal emergency response team to respond." Giant Eagle, a large supermarket chain with over 400 stores in the U.S. Northeast, also stated, "We are closely monitoring the situation by meeting daily to discuss the possibility and potential risks of Omicron landing in the U.S."
Companies that have experienced four pandemics in the past two years are raising expectations for normalization due to vaccine distribution and easing of social distancing, but the resurgence of pandemic fears has triggered another emergency. Companies especially see that the emergence of the Omicron variant will bring significant uncertainty to the market amid unresolved global supply chain disruptions and raw material shortages. Marketing company HubSpot said, "We are assessing whether this situation will lead to restrictions on external activities such as business trips or face-to-face events for companies."
Airlines are growing concerned that the Omicron variant situation may lead countries to close borders again, potentially returning to the severe chaos seen at the beginning of the COVID-19 pandemic last year. Although no Omicron cases have been reported in the U.S. yet, the spread is being taken as a foregone conclusion. Many Asian countries, including Singapore and Japan, are also considering entry restrictions, raising concerns that the air travel crisis triggered at the start of COVID-19 will be repeated.
American Express Global Business Travel, a company specializing in corporate travel, said, "The impact will become clear within a few days," adding, "There is a hit to business trip demand to the United Kingdom." British Airways has suspended all flights to Hong Kong until the 30th after one employee tested positive. EasyJet, a British low-cost carrier (LCC), said, "Currently, flight schedules are normal, but we are closely monitoring the situation," leaving room for response. Bernstein in the UK predicted, "As countries worldwide introduce travel restrictions, it is inevitable that there will be an impact on Christmas and year-end travel demand."
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