Stocks fall due to fever

PORT LOUIS – Share prices in Mauritius hotel stocks have dropped with a cancellation in tourist reservations due to a crippling mosquito-borne virus that is sweeping across the Indian Ocean region, traders said on Friday.

The chikungunya fever, for which there is no cure or vaccine, has spread through Reunion, Mauritius and Seychelles since January and has already infected over 150 000 people. Brokers say hotels in Mauritius, known for its paradise-island image, have seen occupancy rates dropping slightly, with some bookings being cancelled by tourists concerned about the outbreak.”Since February 23, we’ve seen the normally strong hotel stocks dropping as a result of the chikungunya outbreak,” said Sanjay Goolab, a trader at Newton Securities.”We are hearing about room occupancy rates going down, and this is concerning investors,” he added.Share prices in the island’s largest hotel group, New Mauritius Hotels, have dropped 8,9 per cent since February 23.And Sun Resorts’ stock fell 5,88 per cent on Friday.Shares in Naiade Resorts saw a drop of 2,58 per cent over the last nine days to Friday.There is currently no WHO restriction on travelling to the region.Mauritius relies heavily on tourism for foreign revenue, with more than 700 000 tourists flocking to its palm-fringed beaches and turquoise waters every year, generating around US$800 million annually.Ministry of health officials say there were 1 298 confirmed cases and 4 706 suspected cases on February 27, and they believe numbers are likely to increase when updated figures are released later on Friday.The neighbouring French volcanic island of Reunion has reported 157 000 cases and 77 deaths linked to the virus, while Seychelles has reported at least 1 000 cases.The disease is marked by high fever, severe rashes and can be extremely painful, but is not usually considered fatal.- Nampa-ReutersBrokers say hotels in Mauritius, known for its paradise-island image, have seen occupancy rates dropping slightly, with some bookings being cancelled by tourists concerned about the outbreak.”Since February 23, we’ve seen the normally strong hotel stocks dropping as a result of the chikungunya outbreak,” said Sanjay Goolab, a trader at Newton Securities.”We are hearing about room occupancy rates going down, and this is concerning investors,” he added.Share prices in the island’s largest hotel group, New Mauritius Hotels, have dropped 8,9 per cent since February 23.And Sun Resorts’ stock fell 5,88 per cent on Friday.Shares in Naiade Resorts saw a drop of 2,58 per cent over the last nine days to Friday.There is currently no WHO restriction on travelling to the region.Mauritius relies heavily on tourism for foreign revenue, with more than 700 000 tourists flocking to its palm-fringed beaches and turquoise waters every year, generating around US$800 million annually.Ministry of health officials say there were 1 298 confirmed cases and 4 706 suspected cases on February 27, and they believe numbers are likely to increase when updated figures are released later on Friday.The neighbouring French volcanic island of Reunion has reported 157 000 cases and 77 deaths linked to the virus, while Seychelles has reported at least 1 000 cases.The disease is marked by high fever, severe rashes and can be extremely painful, but is not usually considered fatal.- Nampa-Reuters