Hong Kong’s core industries hammered by anti-government protest crisis with deep drops in retail, tourism and stock market
- Market turnover tumbles more than 25 per cent since June, tourist arrivals down 30 per cent and hotel prices slashed more than 50 per cent
- One economist predicts 10 per cent drop in retails sales this year – compared with 8.7 per cent increase in 2018
Hong Kong’s sweeping political turmoil and destabilising protests have eaten into the city’s core industries, with knock-on effects felt across the tourism, aviation and retail sectors, as well as the job market.
Economists on Thursday raised concerns based on a slow burn of alarming metrics: turnover of the stock market has tumbled more than 25 per cent since June, tourist arrivals are down 30 per cent, hotel prices have been slashed more than 50 per cent – and unemployment is on the rise.
“We have seen the rippling effect of the protests on the economy, which exacerbated the already weak retail sector. Together with softened property and stock markets and higher unemployment recently, the outlook is not optimistic,” said Carie Li Ruofan, an economist at OCBC Wing Hang Bank.
“The magnitude of the damage to the economy depends on when the protests end.”
Australia’s Qantas airline said it would next month cut its passenger capacity for Hong Kong by 7 per cent and start using smaller planes.
