THE SPREAD of the Influenza A (H1N1) virus to Singapore couldn't come at a worse time for Singapore's tourism and travel industries, which are already reeling from the impact of the economic downturn.

However, companies don't seem to be hitting the panic button just yet, especially since the alert status remains at yellow.

Corporate travel agency Safe2Travel hasn't seen any change in travel patterns this week as a result of the four confirmed cases of H1N1.

As it is, 'since the slowdown, corporate clients have been travelling only when necessary', highlighted Simon Er, general manager (MICE).

Since the initial global outbreak in April, companies have already been advising travelling employees to take extra precautions and have distributed masks, hand sanitizers and thermometers to employees, he said.

At OCBC, employees are advised to put on hold, if possible, any non-essential trips to affected countries such as the United States.

'We will continue to monitor the situation closely,' said Cephas Chang, head of business continuity management for OCBC, adding that the bank has a pandemic plan in place to ensure business continuity.

Ernst & Young also has a business continuity plan in motion. 'Where necessary, we will restrict staff movements to their own floors and advise our people to use videoconferences, teleconferences, or e-mails as far as possible and avoid large internal meetings,' a spokesman for the company said.

Should the situation ever call for it, employees would be split into two different working sites.

According to a spokesman for the Civil Aviation Authority of Singapore, there have been no disruption to flights and airport operations are running as per normal. However, temperature scanners remain in place at Changi Airport, as well as at other land and sea checkpoints.

Meanwhile, the spread of the virus comes at a point where the travel industry is easing into peak travel season, and as much-anticipated events, such as the Great Singapore Sale (GSS), are underway.

It is too early to tell if and how travel into Singapore will be affected by the global outbreak of H1N1, said the Singapore Tourism Board (STB).

Retailer RSH, which carries brands such as Mango and Massimo Dutti, remains upbeat.

'There could possibly be some effect on travel and tourist arrivals into the country, but it is more likely to be business as usual for retail,' said a spokesman for RSH.

For hoteliers such as Rendezvous Hotel, the threat of the H1N1 virus seems to pale in comparison to Sars.

'Comparing this pandemic to the Sars outbreak, the effect has been minimal as we had experienced a very sharp drop in occupancy during Sars but for the H1N1 outbreak, occupancy has not been greatly affected,' said general manager Kellvin Ong, adding that members of the public may be better prepared and informed this time round.

But while there have been no cancellations at travel agent SA Tours, the spread of the flu to Singapore's shores makes the recovery of the travel industry slower, pointed out its marketing manager Ruth Lim.

Just earlier this week, travel figures for April offered a silver lining, in light of the fact that the decline was comparatively less steep to previous months.

Visitor arrivals to Singapore were down 6.1 per cent year-on- year to 780,000 in April, as opposed to the double digit slides seen in the first three months of this year.

The International Air Transport Association (Iata) reported on Wednesday that April data showed the drop in passenger demand had slowed. Asia-Pacific carriers posted an 8.6 per cent year-on-year decline in traffic, the best showing since January this year.

'The worst may be over,' Giovanni Bisignani, Iata's director general had said, adding however that there were no signs of imminent recovery either.