Canadian business counts Sars cost

Toronto is back in the public eye

Businesses in the Canadian city of Toronto are bracing themselves for more bad news following the resurgence of the deadly Sars virus.

Toronto has been put back on the World Health Organisation's list of affected areas just 12 days after being taken off the list.

Three more deaths from Sars were reported over the weekend, and by the end of Monday, 11 probable new cases and 26 suspected cases had been reported.

The Sars outbreak has led to a sharp drop in the number of visitors, and analysts say it will cost the economy 1 billion Canadian dollars.

Growth hit

For Elyse Allan, the president and CEO of the Toronto Board of Trade, the return of Sars did not come as a total shock.

The hotel business says it has lost C$125m on room and board alone - that's a big hit

Elyse Allan, Toronto Board of Trade

"Those of us who were really working behind the scenes never felt we could relax," she told BBC News Online.

"But we were surprised it came back as soon as it did, and that it's come back in such a big way."

The return of the virus, and the unwelcome publicity that accompanies it, is set to hit the local, and nation, economy hard.

"Our Conference Board reckons the effects so far are about C$1bn off GDP growth for the year.

"The hotel business says it has lost C$125m on room and board alone, let alone conferences, hospitality and other things. That's a big hit.

"In our survey, three in four businesses are saying that they were affected."

Bad timing

The resurgence of the virus has also come just as big push was underway to attract tourists who may have been put off by the initial outbreak.

Large corporations, to an extent, can bear it... but smaller ones need more help

Elyse Allan

"We had marketing under way to try to save some of July and most of August for the tourism business, but this puts a real damper on those efforts," Ms Allan said.

Toronto, which has a population of about 4.5 million, has seen about 12,000 hotel workers lose their jobs and prospects for the coming months appear bleak.

"A lot of students won't be getting any summer work this year."

Helping out

The Toronto Board of Trade is attempting to get banks and utilities to recognise the problems businesses are facing and to help firms get through the latest crisis by being more lenient with bills.

"Large corporations, to an extent, can bear it. They've had some good years and they should be able to soak up the damage," Ms Allan said.

"But smaller ones need more help. Banks know it's in their best interest to be lenient and help out. And they have come forward.

"We've been sending mystery shoppers" [board of trade officials pretending to be customers] "in to see if they are standing by their promises.

"So far they are."