Aviation industry expected to suffer losses of more than US$76 million after protests at Hong Kong International Airport ground flights for two days
- Some 180 flights were cancelled on Monday and more than 400 on Tuesday after protesters occupies terminals
- Analysts say further protests at airport will have ‘exponential’ economic impact
Hong Kong’s world-reputed aviation industry is expected to suffer losses of more than HK$600 million (US$76.48 million) caused by massive flight cancellations over the past two days with far-reaching hidden cost as escalating protests have taken a toll on its standing as a business hub.
Economists made the estimates as thousands of anti-government protesters crippled Hong Kong International Airport for a second straight day on Tuesday by swarming both the arrivals and departures halls to prevent passengers from checking in or clearing security. Some 180 flights were cancelled on Monday, followed by more than 400 on Tuesday. This was the first time in Hong Kong that the airport was forced to cancel flights through protests.
The impact was severe on one of the world’s busiest airports, which handles 800 flights a day, stranding tens of thousands of travellers trying to fly out of the city or scheduled to arrive. Many were furious at having to scramble for accommodation or alternative travel arrangements.
But the protesters have attempted to paralyse the economy to pile pressure on the government amid escalating violent confrontations between police and protesters.
Dr Law Cheung-kwok, policy director at Chinese University’s Aviation Policy and Research Centre, estimated that the aviation sector had suffered economic losses of more than HK$600 million caused by the air travel disruptions over the two days.
He said the direct economic benefits generated by the aviation sector accounted for about 3.5 per cent of the city’s GDP. “Including the indirect benefits such as travellers’ spending, the aviation sector’s economic contribution has made up about 8 per cent of Hong Kong’s GDP,” he said.
“Based on last year’s GDP at over HK$2.8 trillion, one day’s GDP is worth over HK$7.7 billion. Let’s just say that the airport has been disrupted for two half days. So the economic loss could amount to 8 per cent of one day’s GDP, which is over HK$620 million,” he said.
