Grim times for Hong Kong’s travel agencies as 71 companies fold, with more likely to go by year-end
- Covid-19 leaves stricken travel companies relying on government subsidies, savings to get by
- Tour guides with nowhere to go hope Covid-19 restrictions can be eased for local groups
The Covid-19 pandemic, which has halted international trips, took its toll on 71 Hong Kong travel agents this year, but the industry regulator has warned that the worst is yet to come.
“The outlook is most gloomy for travel agents,” said Alice Chan Cheung Lok-yee, executive director of the Travel Industry Council, which issues licences to agents. “Who can survive a zero-income situation for such a long period?”
Chan told the Post that there were 1,723 travel agents still in business at the middle of September, compared to about 1,900 at the start of last year. “We expect more close down towards the end of the year,” she said.
This was because the government has said its HK$81 billion wage subsidy scheme meant to preserve jobs would not be extended beyond September.
“Many travel agents have been surviving on the subsidy, their own savings and even from selling their properties,” Chan said.