The coronavirus disease (COVID-19) that was first identified in Wuhan, China on December 31, 2019, has finally reached Iran and the first cases were officially reported on February 19th.
In addition to the tragic human cost, the coronavirus disease (COVID-19) is feared to cause serious economic damage to Iran’s already-enfeebled economy.
Economic enterprises, including restaurants, cafes, teahouses, companies offering travel services and cultural centers like cinemas and theaters have been the first to suffer business fallouts from the outbreak, the Persian-language daily Shahrvand reported.
First identified in Wuhan, China, on Dec. 31, 2019, the virus has finally reached Iran and the first cases were officially reported on Feb. 19.
Economic activities that have greater in-person communication are more vulnerable to the situation here. Food suppliers like restaurants which, according to the latest statistics, account for 240 trillion rials ($1.56 billion) of Iran’s economy, are the primary victims of the virus.
Some 35,000 workers are working in Tehran’s 3,000 traditional teahouses and cafes. They will be hit hard, as few people dare to dine out.
Transportation by vehicles other than personal cars has been advised against by professionals in the medical community.
Despite the announcement made by Tehran Municipality about buses and metro carriages being disinfected every night, the share of these two is insignificant when compared with the number and variety of other modes of transportation.
Public transportation accounts for 12 million out 20 million journeys made in Tehran every day. About 6.5 million people commute to Tehran from suburban towns per day.
The effects of the epidemic on tourism industry have aroused considerable concerns.
“Hoteliers anticipating the advent of spring and New Year holidays are now facing an unwelcome guest,” Mohammad Ali Farrokh-Mehr, the chairman of Tehran Hotels and Hotel Apartments Union, has been quoted as saying.
“With the recession in full swing, we hope not to be put in a position where we have to downsize our labor force again,” he was quoted as saying by ILNA.
“Iranian hotels had planned to offer a 50% discount on Chinese tours during the Lunar New Year holidays, but the coronavirus wreaked havoc on all travel plans. Had it not happened, a revolution would have taken place in the country’s hospitality industry.”
The country’s cultural sector has not escaped the effect of coronavirus either. To better understand the economic losses of the disease, it must be noted that there are 596 cinemas and 293 performing art venues across the country with an annual attendance of 28.5 million.
Neighbors Impose Travel Ban
Other economic sectors have also been dented by the outbreak of the virus.
The closure of borders with neighboring countries and restrictions on commercial flights, export and import have created new problems for the country.
As cases of the new coronavirus infections rise in Iran, recording the highest death toll outside China, neighboring countries are scrambling to contain the outbreak.
Four immediate neighbors of the Islamic republic—Turkey, Pakistan, Afghanistan and Armenia—have said they would close land borders, while three imposed restrictions on air traffic, amid growing regional concerns about the spread of the virus, AFP reported on Sunday.
Georgia has also decided to suspend direct flights with Iran amid the recent coronavirus outbreak, Trend News Agency reported on Monday, citing Agenda.ge.
What's more, as IRNA reported on Monday, Turkmenistan has also shut its borders with Iran. Local Iranian officials have announced that no more trucks will be allowed to cross the border.
Iraqi and Kuwaiti authorities have already banned travel to and from Iran.
"To prevent the spread of the novel #coronavirus and protect the public, Afghanistan suspends all passenger movement [air and ground] to and from Iran," the office of the National Security Council of Afghanistan tweeted.
A provincial official in Pakistan and the nation's Frontier Corps confirmed the country had sealed the land border with Iran.
Both Afghanistan and Pakistan share long, porous borders with Iran, which are often used by smugglers and human traffickers, while millions of Afghan refugees live in the Islamic Republic, raising fears that the virus could easily spread over the border.
Turkey said it would "temporarily" close its land border with Iran, while air traffic from Iran would be halted but departures to the country continue.
Late on Sunday, Armenia's Prime Minister Nikol Pachinian announced his country was both suspending flights and entry via the sole land border checkpoint with Iran.
Nearly 80,000 people have been infected worldwide, a vast majority in China.
But official figures indicate the death rate is proportionately much higher in Iran than China, standing at nearly one in five of the confirmed infections.
Iran's Health Minister Saeed Namaki said the treatment of COVID-19 cases would be free.
"In every city, one hospital will be dedicated to treating coronavirus cases," he said, adding that this number would be greater in bigger cities like Tehran.
Other regional countries on Sunday also took precautionary measures to counter the virus potentially spreading from Iran.
Jordan said it would bar entry to citizens of China, Iran and South Korea and other foreigners travelling from those countries.
The Kuwait Port Authority, meanwhile, announced a ban on the entry of all ships from the Islamic Republic.
Trade With Biggest Trading Takes Beating
Notably, Iran-China trade has taken a beating following the emergence of coronavirus. These losses have several aspects like a sharp decline in imports of raw materials and unprocessed goods that make up the lion’s share of Iran’s exports to China.
China is Iran’s top trade partner, making up about a quarter of Iran's overall imports and exports.
Earlier this week, the International Monetary Fund announced that China's coronavirus epidemic will likely cut 0.1% from global economic growth and drag down growth for China's economy to 5.6% this year.
“But we are also looking at more dire scenarios where the spread of the virus continues for longer and more globally, and the growth consequences are more protracted,” IMF Managing Director Kristalina Georgieva said at the G20 Finance Ministers and Central Bank Governors Meeting in Riyadh, Saudi Arabia.
The fallout of the coronavirus epidemic is growing, as Chinese factories are still operating around half their capacity and many workers remain housebound. The partial shutdown of the world’s second biggest economy is having an effect elsewhere by weakening trade, fraying manufacturing supply chains, reducing tourism and fanning investor uncertainty.
Weighing in on Iran-China trade, Pedram Soltani, the former member of the presiding board of Iran Chamber of Commerce, Industries, Mines and Trade, said, “We don’t have a strong economy like China. The government’s budgetary constraints won’t allow the government to take expansionary monetary policies to cushion the blow of the epidemic. We can’t build a 100-bed hospital in 10 days or are not equipped with modern laboratories or treatment plants. And sadly, our social capital pales in comparison with that of China’s. The only option we have is to prevent the spread of the disease by taking momentous, prompt decisions. We can’t afford to lose time.”
Gov't Allocates $34.6m to Battle Outbreak
The government has allocated 5.3 trillion rials ($34.6 million) in financial support to the Ministry of Health and Medical Education to battle the new coronavirus, the head of Plan and Budget Organization tweeted on Sunday.
"After talks with Health Minister Saeed Namaki as well as with the deans of medical universities of Qom, Gilan and Tehran’s Shahid Beheshti, we announced our readiness to lend all the support needed to battle and prevent the spread of the coronavirus," ISNA quoted Mohammad Baqer Nobakht as saying.
According to data released by Kianoush Jahanpour, the head of the Health Ministry's Media Center, the epicenter of the virus outbreak in Iran is Qom, IRNA reported.
President Hassan Rouhani has ordered the health minister to set up a committee and mobilize resources to coordinate efforts to stem the coronavirus spread.
Namaki is set to attend a parliamentary session on Monday to update the lawmakers on the epidemic. Lawmakers have advised the public to refrain from traveling in the New Year holidays that start on March 20.
Latest official statistics suggest a total of 61 people had contracted the coronavirus in Iran as of Monday with the death toll standing at 12.
