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
February 9,2020

Beijing, Feb 9: After making sure everyone's face mask is on and sanitizer is to hand, the Qiao family heads out to Jingshan Park, a former royal sanctuary beside the Forbidden City in China's capital Beijing.

Snow has fallen for a second day, a rare event in the city of 21.5 million that would normally bring hundreds of thousands of people out to take photos and play. But the streets are empty and the parks are so quiet the only sound is of birds chirping.

It's not just Beijing. Shanghai, China's financial hub, and other cities in the world's most populous nation have turned into ghost towns after the government extended a holiday and asked residents not to go out because of the coronavirus.

"We know the situation of the coronavirus is severe. But the epicentre is far away, so we think it should be fine here ... It's a God-given chance to enjoy this family moment with snow and without work," said Mr Qiao, who has an 11-year-old daughter.

The epidemic has killed 722 people and infected nearly 32,000 in China as of February 8. More than three-quarters of the cases are in the central Hubei province where the virus originated - more than 1,000 km (620 miles) from Beijing.

Only a few people are brave enough to come out. A security guard at Jingshan Park said there were less than a third of the number of tourists than usual, even with the rare snowfall.

Even at one of the best spots for snapping photos of snowy Beijing just outside the Forbidden City, there's barely a crowd, while the usual tour buses and groups of people speaking different dialects are nowhere to be seen.

"Last year when it snowed, I took a few hours off work to come down here to take a picture and the crowd was several layers deep," said a man in his 30s who gave his surname as Yang. "But this year, I am not at all worried about finding a space to take a photo. The virus is keeping people indoors."

Security guards along Wangfujing street, a popular pedestrianised shopping area in downtown Beijing, said it was normally so crowded during the holiday period that it was hard to move around.

"Look at it now, there are more security guards and street cleaners than tourists!" said one of the guards.

Businesses, including shops, bars and restaurants, have been severely hit by the epidemic as the government has banned mass gatherings and even group meals in an effort to curb the spread of the coronavirus.

"You would have to wait outside for a table on a normal day," said a waitress at a restaurant with more than 50 tables. Just five were taken at the peak lunch hour.

Only a handful of the more than 100 restaurants along Beijing's famous food street, Guijie, were open, and the remaining outlets were wondering how long they can hold out.

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News Network
June 6,2020

Washington, Jun 6: Washington mayor Muriel Bowser on Friday renamed an area near the White House that has become the epicenter of anti-racism protests over the past week "Black Lives Matter Plaza" -- unveiling a giant street mural.

But in so doing, the African-American mayor piqued the ire of the very movement she was supporting, as well as of President Donald Trump.

The protests are focused on the May 25 death in Minneapolis of 46-year-old black man George Floyd while in police custody. A white officer kneeled on his neck until he lost consciousness.

That officer and three others are now in custody and facing charges -- second-degree murder for the kneeling officer, and aiding and abetting that crime for his colleagues.

Just north of the White House, the words BLACK LIVES MATTER were painted in huge yellow letters along the street leading to the presidential mansion, along with the symbol from the DC flag.

"The section of 16th street in front of the White House is now officially 'Black Lives Matter Plaza'," Bowser tweeted.

A city worker put up a new street sign with the name.

"Determination to make America the land it ought to be," she said on Twitter.

The corner of 16th and H is significant -- in a controversial incident on Monday, peaceful protesters gathered there were dispersed with tear gas.

Shortly afterwards, Trump walked from the White House to a nearby church for a photo op, during which he held the Bible in his hand.

"There was a dispute this week about whose street this is. Mayor Bowser wanted to make it abundantly clear that this is DC's street and to honor demonstrators" who protested on Monday, her chief of staff John Falcicchio tweeted.

Rose Jaffe, one of the artists in the collective that painted the BLACK LIVES MATTER sign, told AFP it was "about reclaiming the streets of DC."

But she added that Bowser "has to do more than just a photo-op -- she must carry on when this is washed away" on issues like police accountability.

Stars Like LeBron James praised her move on Twitter, but the local chapter of the Black Lives Movement balked, calling the mural a "performative distraction from real policy changes."

"This is to appease white liberals while ignoring our demands," it said on Twitter, saying Bowser had "consistently been on the wrong side" of the movement.

'We are well equipped'

The US government deployed a significant contingent of federal officers and National Guard troops from other states -- many of them not wearing any identifying garb or badges -- to handle protests in Washington.

Bowser had called up the local Guardsmen but the Justice Department moved to take partial control of peacekeeping, with Guard troops from as far away as Utah brought in.

In a letter to Trump dated Thursday and tweeted early Friday, Bowser called for "all extraordinary federal law enforcement and military presence" to be removed.

She said their deployment was "inflaming demonstrators and adding to the grievances of those who, by and large, are peacefully protesting for change and for reforms to the racist and broken systems that are killing black Americans."

"These additional, unidentified units are operating outside of established chains of command," she added.

"We are well equipped to handle large demonstrations and First Amendment activities," including the right to assemble, Bowser said.

Trump reiterated on Friday that authorities need to "dominate the streets," and has been unapologetic about the deployment of forces.

And on Twitter, he lashed out at Bowser, calling her "incompetent" and saying the National Guard had saved her from "great embarrassment."

Senator Mike Lee of Utah accused Bowser of evicting Utah National Guard members from area hotels.

She replied: "DC residents cannot pay their hotel bills. The Army can clear that up with the hotel today, and we are willing to help."

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News Network
February 3,2020

Beijing, Feb 3: The first batch of patients arrived on Monday at a specialised hospital built in just 10 days as part of China's intensive efforts to fight a new virus.

Huoshenshan Hospital and a second facility with 1,500 beds that's due to open this week were built by construction crews who are working around the clock in Wuhan, the city in central China where the outbreak was first detected in December.

The Wuhan treatment centres mark the second time Chinese leaders have responded to a new disease by building specialised hospitals almost overnight. As severe acute respiratory syndrome, or SARS, spread in 2003, a facility in Beijing for patients with that viral disease was constructed in a week.

The first batch of patients arrived at the Huoshenshan Hospital at 10 am on Monday, according to state media. The reports gave no details of the patients' identities or conditions.

The ruling Communist Party's military wing, the People's Liberation Army, sent 1,400 doctors, nurses and other personnel to staff the Wuhan hospital, the official Xinhua News Agency said. The government said earlier some have experience fighting SARS and other outbreaks.

Authorities have cut most road, rail and air access to Wuhan and surrounding cities, isolating some 50 million people, in efforts to contain the viral outbreak that has sickened more than 17,000 and killed more than 360 people.

The Huoshenshan Hospital was built by a 7,000-member crew of carpenters, plumbers, electricians and other specialists, according to the Xinhua News Agency.               Photos in state media showed workers in winter clothing, safety helmets and the surgical-style masks worn by millions of Chinese in an attempt to avoid contracting the virus.

About half of the two-storey, 600,000-square-foot building is isolation wards, according to the government newspaper Yangtze Daily. It has 30 intensive care units.

Doctors can talk with outside experts over a video system that links them to Beijing's PLA General Hospital, according to the Yangtze Daily. It said the system was installed in less than 12 hours by a 20-member "commando team" from Wuhan Telecom Ltd.

The building has specialised ventilation systems and double-sided cabinets that connect patient rooms to hallways and allow hospital staff to deliver supplies without entering the rooms.

The hospital received a donation of "medical robots" from a Chinese company for use in delivering medicines and carrying test samples, according to the Shanghai newspaper The Paper.

In other cities, the government has designated hospitals to handle cases of the new virus.

In Beijing, the Xiaotangshan Hospital built in 2003 for SARS is being renovated by construction workers. The government has yet to say whether it might be used for patients with the new disease.

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