Tourism in trouble: Hong Kong demonstrations hit economy

Agencies
August 12, 2019

Hong Kong, Aug 12: Empty hotel rooms, struggling shops and even disruption at Disneyland: months of protests in Hong Kong have taken a major toll on the city's economy, with no end in sight.

City leader Carrie Lam has warned that the international financial hub is facing an economic crisis worse than either the 2003 SARS outbreak that paralysed Hong Kong or the 2008 financial crisis.

"The situation this time is more severe," she said. "In other words, the economic recovery will take a very long time."

The private sector, in particular the tourism industry, has begun counting the cost of more than two months of demonstrations that erupted in opposition to a bill allowing extraditions to China but have morphed into a broader pro-democracy movement.

The figures are stark: hotel occupancy rates are down "double-digit" percentages, as were visitor arrivals in July. Group tour bookings from the short-haul market have plunged up to 50 percent.

"In recent months, what has happened in Hong Kong has indeed put local people's livelihoods as well as the economy in a worrying, or even dangerous situation," warned Edward Yau, Hong Kong's secretary for commerce and economic development.

The city's tourism industry says it feels under siege.

"I think the situation is getting more and more serious," Jason Wong, chairman of the Travel Industry Council of Hong Kong, told AFP.

The impact is so bad that travel agents are considering putting staff on unpaid leave as they try to weather the storm, he warned.

Even Disneyland hit

Images of increasingly violent clashes between masked protesters and police firing tear gas in the city's streets have made global headlines, with protesters announcing new demonstrations throughout August as they press their demands.

A Hong Kong Tourism Board spokesperson told AFP that the number of forward bookings in August and September has "dropped significantly," suggesting the economic toll will linger throughout the summer season.

A string of travel warnings issued by countries including the United States, Australia and Japan is likely to compound the industry's woes.

The fall in arrivals has hurt Hong Kong's carrier Cathay Pacific, which was also forced to cancel flights this week during a general strike that caused chaos in the city.

And even Disneyland Hong Kong has been hit, with CEO Bob Iger telling reporters: "We have seen an impact from the protests."

"There's definitely been disruption. That has impacted our visitation there."

The retail sector has also been hit by the drop in arriving visitors hunting for bargains, shops often forced to shutter during the sometimes daily protests.

Experts say the crisis is compounding the economic downturn Hong Kong was already experiencing as a result of being caught up in the US-China trade war.

It's a "double whammy," warned Stephen Innes, Managing Partner of Valour Markets."

"We always take a view that oh, this too will pass. But so far that view is not holding any water... and now it seems like every weekend we're dealing with further escalations," he told AFP.

'Nastier than expected'

The property market, which fell over 20 percent during the 2008 financial crash, remains strong.

But Innes warned that the deepening crisis could result in capital outflows.

"All the money from the mainland that has propped up Hong Kong property markets could reverse as quickly as it flowed in," he said.

"This is getting a little bit nastier than any of us had expected."

The economic picture for the city was far from pretty even before the protests began, with growth shrinking from 4.6 percent to 0.6 percent year-on-year in the first quarter -- the worst quarterly performance in a decade.

Preliminary data suggests the second quarter fared no better, and while the government still hopes for 2-3 percent growth this year, predictions from major banks are more pessimistic.

Those falls reflect the effects of the US-China trade war on an economy that relies heavily on logistics processing and is vulnerable to a fall in trade.

The impact of the protests on growth will not be clear until later in the year, but Martin Rasmussen, China Economist at Capital Economics, said the crisis was likely to weigh heavily.

"In the beginning they were quite peaceful, you could say comparable to the protests back in 2014," he said, referring to pro-democracy Umbrella Movement in the city.

"Now they've become much more extreme, so we think the impact on the economy will begin to take its toll."

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News Network
July 3,2020

Jul 3: China under President Xi Jinping has stepped up its "aggressive" foreign policy toward India and "resisted" efforts to clarify the Line of Actual Control that prevented a lasting peace from being realised, according to a report released by a US Congress appointed commission.

The armies of India and China have been locked in a bitter standoff at multiple locations in eastern Ladakh for the last seven weeks, and the tension escalated after 20 Indian soldiers were killed in a violent clash in the Galwan Valley on June 15.

“Under General Secretary of the Chinese Communist Party (CCP) Xi Jinping, Beijing has stepped up its aggressive foreign policy toward New Delhi. Since 2013, China has engaged in five major altercations with India along the Line of Actual Control (LAC),” said a brief issued by US-China Economic and Security Review Commission.

"Beijing and New Delhi have signed a series of agreements and committed to confidence-building measures to stabilise their border, but China has resisted efforts to clarify the LAC, preventing a lasting peace from being realised,” said the report and was prepared at the request of the Commission to support its deliberations.

Authored by Will Green, a Policy Analyst on the Security and Foreign Affairs Team at the Commission, the report says that the Chinese government is particularly fearful of India’s growing relationship with the United States and its allies and partners.

“The latest border clash is part of a broader pattern in which Beijing seeks to warn New Delhi against aligning with Washington,” it said.

After Xi assumed power in 2012, there was a significant increase in clashes, despite the fact that he met Prime Minister Narendra Modi several times and Beijing and New Delhi have agreed to a series of confidence-building mechanisms designed to mitigate tensions.

Prior to 2013, the last major border clash was in 1987. The 1950s and 1960s were a particularly tense period, culminating in 1962 with a war that left thousands of soldiers dead on both sides, according to the records of China's People's Liberation Army, the report said.

“The 2020 skirmish is in line with Beijing’s increasingly assertive foreign policy. The clash came as Beijing was aggressively pressing its other expansive sovereignty claims in the Indo-Pacific region, such as over Taiwan and in the South and East China seas,” it said.

China is engaged in hotly contested territorial disputes in both the South China Sea and the East China Sea. Beijing has built up and militarised many of the islands and reefs it controls in the region. Both areas are stated to be rich in minerals, oil and other natural resources and are vital to global trade.

China claims almost all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counter claims over the area.

Several weeks before the clash in the Galwan Valley, Chinese Defence Minister Wei Fenghe called on Beijing to “use fighting to promote stability” as the country’s external security environment worsened, a potential indication of China’s intent to proactively initiate military tensions with its neighbours to project an image of strength, the report said.

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News Network
February 17,2020

Feb 17: Chinese authorities on Monday reported a slight upturn in new virus cases and 105 more deaths for a total of 1,770 since the outbreak began two months ago.

The 2,048 new cases followed three days of declines but was up by just 39 cases from the previous day’s figure. Another 10,844 people have recovered from COVID-19, a disease caused by the new coronavirus, and have been discharged from hospitals, according to Monday’s figures.

The update followed the publication late Saturday in China’s official media of a recent speech by President Xi Jinping in which he indicated for the first time that he had led the response to the outbreak from early in the crisis. While the reports were an apparent attempt to demonstrate the Communist Party leadership acted decisively from the start, it also opened Xi up to criticism over why the public was not alerted sooner.

In his speech, Xi said he gave instructions on fighting the virus on Jan. 7 and ordered the shutdown of the most-affected cities that began on Jan. 23.

The disclosure of his speech indicates top leaders knew about the outbreak’s potential severity at least two weeks before such dangers were made known to the public. It was not until late January that officials said the virus can spread between humans and public alarm began to rise.

New cases in other countries are raising growing concerns about containment of the virus.

Taiwan on Sunday reported its first death from COVID-19, the fifth fatality outside of mainland China. Taiwan’s Central News Agency, citing health minister Chen Shih-chung, said the man who died was in his 60s and had not traveled overseas recently and had no known contact with virus patients.

Japanese Prime Minister Shinzo Abe convened an experts meeting to discuss containment measures in his country, where more than a dozen cases have emerged in the past few days without any obvious link to China.

“The situation surrounding this virus is changing by the minute,” Abe said.

Japanese Health Minister Katsunobu Kato said the country is “entering into a phase that is different from before,” requiring new steps to stop the spread of the virus.

Japan now has 413 confirmed cases, including 355 from a quarantined cruise ship, and one death from the virus. Its total is the highest number of cases among about two dozen countries outside of China where the illness has spread.

Hundreds of Americans from the cruise ship took charter flights home, as Japan announced another 70 infections had been confirmed on the Diamond Princess. Canada, Hong Kong and Italy were planning similar flights.

The 300 or so Americans flying on U.S.-government chartered aircraft back to the U.S. will face another 14-day quarantine at Travis Air Force Base in California and Lackland Air Force Base in Texas. The U.S. Embassy said the departure was offered because people on the ship were at a high risk of exposure to the virus. People with symptoms were banned from the flights.

About 255 Canadians and 330 Hong Kong residents are on board the ship or undergoing treatment in Japanese hospitals. There are also 35 Italians, of which 25 are crew members, including the captain.

In China’s Hubei province, where the outbreak began in December, all vehicle traffic will be banned in another containment measure. It expands a vehicle ban in the provincial capital, Wuhan, where public transportation, trains and planes have been halted for weeks.

Exceptions were being made for vehicles involved in epidemic prevention and transporting daily necessities.

Hubei has built new hospitals with thousands of patient beds and China has sent thousands of military medical personnel to staff the new facilities and help the overburdened health care system.

Last Thursday, Hubei changed how it recognized COVID-19 cases, accepting a doctor’s diagnosis rather than waiting for confirmed laboratory test results, in order to treat patients faster. The tally spiked by more than 15,000 cases under the new method.

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Agencies
March 8,2020

Panic gripped big tech firms like Facebook and Twitter which decided to close their offices from Seattle to London as more employees tested positive for the new coronavirus.

Facebook shut its three London offices till Monday after an employee was diagnosed with COVID-19.

The social networking giant told nearly 3,000 employees in London to work from home after an employee, who is based in Singapore but visited the London offices between February 24-26, was diagnosed with the new coronavirus, Sky News reported on Friday.

"An employee based in our Singapore office who has been diagnosed with COVID-19 visited our London offices on February 24-26.

"We are therefore closing our London offices until Monday for deep cleaning and employees are working from home until then," the company said in a statement.

There have been 163 cases of coronavirus so far in the UK.

Earlier, Facebook recommended all its Bay Area employees in the US to work from home. The latest precautions come after San Francisco announced its first two coronavirus cases on Thursday.

Facebook has also shut its Seattle office until Monday after one of its contractors was confirmed to be infected with the virus. The infected contractor last visited the Facebook office on February 21. King County health officials said all Facebook sites should work from home until March 31.

Twitter shut its Seattle office for a 'deep clean' after an employee developed COVID-19 like symptoms though final result was still awaited.

"A Seattle-based employee has been advised by doctor about likely COVID-19, though still awaiting the final testing," Twitter said in a tweet on Friday.

"While the employee has not been at a Twitter office for several weeks and hasn't been in contact w/others, we're closing our Seattle office to deep clean," the company added.

According to The Seattle Times, at least 14 people have died due to COVID-19 in Washington State till date.

Amazon, Microsoft, Google and Facebook have advised their employees in Washington State to work from home.

Apple has reportedly suggested its employees at California campuses to work from home as an "extra precaution" while new coronavirus cases spread on the west coast in the US, especially Seattle area.

Apple's flagship developers' conference WWDC 2020 in June is also at the risk of getting cancelled as the Santa Clara public health department has warned against large public gatherings. The event draws nearly 5,000 developers from across the world.

The US death toll from the new coronavirus has climbed to 14, according to Johns Hopkins' tracker, with 329 cases reported across the country.

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