China
2019.09.17 18:59 GMT+8

How 100 days of unrest hit Hong Kong's economy

Updated 2019.09.18 16:35 GMT+8
CGTN

The unrest in Hong Kong has passed the 100-day milestone.

Since the first massive protest hit the city on June 9, the international financial hub has been beset by chaos, insecurity and an economic downturn.

Before CGTN breaks its economy down to each specific field, take a look at the city's once proud financial market performance.

The Hang Seng Index, the main indicator of Hong Kong's market performance, dropped 2.68 percent in July, the steepest among its peers globally.

In August, the index was down 7.93 percent; only one IPO showed up.

If you are an airline executive, your planes may not take off. On August 12, the Hong Kong International Airport shut down due to an unauthorized sit-in at the airport. According to Dot Dot News, the paralysis of the airport has severely damaged the local economy, resulting in 206,000 fewer passengers, 22.85 million Hong Kong dollars decrease in profits for the Airport Authority and a freight traffic loss of 13,863 tons.

If you are a taxi driver, business might have decreased by about 30 percent in recent times. Some drivers lost as much as half of their income. An ordinary cab driver can normally earn 800 Hong Kong dollars a day, but might now have to make do with 500, one driver told CGTN.

If you are a tour guide, you may have to look for a side business in the meantime. In August, the number of tourists visiting Hong Kong was down by 40 percent, said the city's Financial Secretary Paul Chan. The Hong Kong Tour Guides General Union said one-tenth of its members received no income in August since they didn't get any business.

"Normally we can get 30,000 Hong Kong dollars at least in August, but now just two to three thousand," chairman of the Hong Kong Tourism Employees Union Leong Fong-yuen told CCTV.

If you own a hotel or work for a hotel, the outlook is just as grim. Normally, almost every hotel in Hong Kong is full in August. The average occupancy rate during the month is about 90 percent, said Yiu Si-wing, the director at China Travel Service and a member of the Hong Kong Legislative Council. However, "in some areas, the rate was only 30 to 40 percent last month," Yiu added.

During the National Day holiday last year, a room in Hong Kong's Ritz-Carlton cost 7,100 Hong Kong dollars, and a room in Harbor Plaza cost 2,465 Hong Kong dollars, according to CGTN research. But the prices are just 3,600 and 1,613 Hong Kong dollars respectively for this year's National Day holiday in the first week of October.

If you are a shopper looking for discounts, things are looking rosy. Discount signs are everywhere, with some shopping malls offering up to 70 percent off.

It is no secret that when an economic downturn happens, small- and medium-sized enterprises are the first to be hit. And In Hong Kong, more than 95 percent of the companies are small- and medium-sized. Many of them have lost business this summer. Some employees have had their salaries cut and even been laid off.

Hong Kong's future belongs to the city itself. However, if the unrest continues, it will lose even more.

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