Holiday season brings little cheer for Hong Kong businesses hit hard by months of protest turmoil
- Retailers could suffer at least a 15 per cent decline in revenues, experts say, and restaurant profits could fall as much as 30 per cent
- Veteran restaurateur says this Christmas season is the worst he has seen in over 50 years in the industry
Industry leaders and analysts predict holiday business to fall sharply year-on-year, with tourist arrivals expected to drop as much as 40 per cent during the festive season. Retailers could suffer at least a 15 per cent decline in revenues, the experts said, and restaurant profits could fall as much as 30 per cent.
Tourism lawmaker Yiu Si-wing estimated the number of arrivals to Hong Kong during the Christmas holiday would drop 30 to 40 per cent, a drop he described as the steepest since the 1997 handover.
“Even during Sars, the effects only took place in the first half of the year. There hasn’t ever been such a drop for Christmas,” Yiu said, referring to the 2003 outbreak of severe acute respiratory syndrome.
Yiu said the city’s hotel occupancy rates were higher than 90 per cent at this time last year, but this year accommodation in protest zones – such as Tsim Sha Tsui and Mong Kok – would likely be around 30 to 40 per cent. He said other areas in the city could reach 70 to 80 per cent occupancy.
He said that last year a room at a three or four-star hotel could cost more than HK$1,200 (US$153), but this Christmas season prices could drop 30 to 50 per cent.