(Yicai Global) Feb. 5 -- Many of China's consumer industries have been badly affected by the pneumonia epidemic caused by a novel coronavirus that has brought much of China to a standstill over the last few weeks.

Instead of celebrating what is normally the peak business season over the Chinese New Year holiday, a nationwide lockdown on all forms of public gatherings has hit the aviation, film, entertainment and catering sectors hard. Many are asking for assistance to cover the costs incurred by this force majeure.

Restrictions on domestic travel over the holiday period has caused huge losses in the civil aviation industry. Many medium-sized airlines are losing more than CNY10 million (USD1.4 million) a day and large companies are experiencing bigger losses. Firms with insufficient cash reserves are at risk of going under.

The impact in the aviation sector is likely to be greater than during the outbreak of SARS, or Severe Acute Respiratory Syndrome, in 2003, industry insider Lin Zhijie told Yicai Global.

To get through this difficult period, many airlines are proposing that the country's airport tax is waived or reduced temporarily. The tax is collected by the government from passengers and airlines for the development of airport facilities.

Travel agencies are also under increasing pressure as they were ordered to offer full refunds or free booking changes to adjustments in travel plans over the Spring Festival break. There were 20 times more passenger refunds over the holiday period than usual, and many agencies have advanced over CNY100 million (USD14.3 million) in funds and will need to wait for 10 to 15 days to be reimbursed by the airlines.

There is also some confusion about the length of the period eligible for free refunds and this has led to disagreements between the travel agencies and airlines, a ticket agent told Yicai Global. It is hoped that the Civil Aviation Administration of China will soon clarify its policies so that the travel agencies do not lose out, he added.

More Takeouts

Restaurants have also felt the pinch. Normally a peak season with friends and family gathering around the Lazy Susan laden with dishes, this Spring Festival restaurants' eat-in business fell by 80 percent to 90 percent as people were encouraged to stay home, Wang Xiaolong, chief executive of restaurant chain Best Food Holding told Yicai Global.

This has caused huge losses. Many eateries stockpiled fresh foods before the holiday, only for it to go to waste. Guangdong-based Best Food, which runs over 14 restaurant chains in China including Seesaw Café and hotpot restaurant Xin Ladao, has been quick to act and has already closed more than 400 stores.

Many restaurants are turning to take-outs to increase revenue and are asking for reductions in the commissions charged by big online food delivery firms such as Meituan Dianping and Ele.me.

"Commissions on takeaway platforms usually account for 15 percent to 20 percent of sales revenue," Wang said. Meituan has exempted commissions in Wuhan. I hope that they can offer more reductions, he added.

Entertainment Subsidies

The entertainment sector has also been hit hard. Seven Chinese blockbuster films scheduled for release over the highly lucrative holiday period, including the much anticipated Lost in Russia by Xu Zheng, have had their debut postponed as cinemas were told to shut to help prevent the spread of the virus.

Many performance companies have also suffered. One such firm in Shanghai has cancelled all shows until the second half of this year due to the uncertain course of the epidemic. It is now trying to recover fees paid to venues, hotels and transport companies.

Some venues are willing to negotiate fees, but the process is slow and they prefer to offer a reduction in the next contract rather than refund cash, the firm's producer said. Some of our teams booked flights with foreign airlines and it is more difficult to negotiate with them. It is hoped that the government can provide some subsidies to cover these losses, he added.

Editor: Kim Taylor