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
June 19,2020

United Nations, Jun 19: Half of the world's children -- one billion every year -- are affected by physical, sexual or psychological violence, suffering injuries and death because countries have failed to follow established strategies to protect them, the first report of its kind from the UN has said, with experts noting that the coronavirus-related lockdowns have left far too many youngsters stuck with their abusers.

While nearly all countries (88 per cent) have laws in place to protect minors, less than half (47 per cent) say they strongly enforce them, said the Global Status Report on Preventing Violence Against Children 2020 launched on Thursday.

Because countries have failed to follow established strategies to protect children, about one billion are affected each year by physical, sexual or psychological violence, it said.

"There is never any excuse for violence against children," WHO Director-General Tedros Adhanom Ghebreyesus said.

"We have evidence-based tools to prevent it, which we urge all countries to implement. Protecting the health and well-being of children is central to protecting our collective health and well-being, now and for the future," he said.

The report -- launched by the World Health Organisation, the UNICEF, the UNESCO, the Special Representative of the UN Secretary-General on Violence against Children and the End Violence Partnership -- charted progress in 155 countries against the "INSPIRE" framework, a set of seven strategies for preventing and responding to violence against children.

The report signaled a clear need in all countries to scale up efforts to implement them. It included the first ever global homicide estimates specifically for children under 18 years of age -- previous estimates were based on data that included 18 to 19-year olds.

According to the findings, in 2017, around 40,000 children were victims of homicide.

"Violence against children has always been pervasive, and now things could be getting much worse," UNICEF Executive Director Henrietta Fore said.

"Lockdowns, school closures and movement restrictions have left far too many children stuck with their abusers, without the safe space that school would normally offer. It is urgent to scale up efforts to protect children during these times and beyond, including by designating social service workers as essential and strengthening child helplines," she said.

UNESCO Director-General Audrey Azoulay said during the COVID-19 pandemic, and the related school closures, "we have seen a rise in violence and hate online – and this includes bullying".

"Now, as schools begin to re-open, children are expressing their fears about going back to school. It is our collective responsibility to ensure that schools are safe environments for all children. We need to think and act collectively to stop violence at school and in our societies at large," Azoulay said.

Stay-at-home measures including school closures have limited the usual sources of support for families and individuals such as friends, extended family or professionals.

This further erodes victims’ ability to successfully cope with crises and the new routines of daily life. Spikes in calls to helplines for child abuse and intimate partner violence have been observed, the report said.

While online communities have become central to maintain many children's learning, support and play, an increase in harmful online behaviors including cyberbullying, risky online behavior and sexual exploitation have been identified.

“Whilst this report was being finalised, confinement measures and the disrupted provision of already limited child protection services exacerbated the vulnerability of children to various forms of violence," said Najat Maalla M’jid, Special Representative of the UN Secretary-General on Violence against Children.

Of the INSPIRE strategies, only access to schools through enrolment showed the most progress with 54 per cent of the countries reporting that a sufficient number of children in need were being reached in this way.

Between 32 per cent and 37 per cent of the countries considered that victims of violence could access support services, while 26 per cent of the countries provided programmes on parent and caregiver support; 21 per cent of the countries had programmes to change harmful norms; and 15 per cent of the countries had modifications to provide safe physical environments for children, the report said.

Although a majority of countries (83 per cent) have national data on violence against children, only 21 per cent used these to set baselines and national targets to prevent and respond to violence against children, it added.

The report said about 80 per cent of countries have national plans of action and policies but only one-fifth have plans that are fully funded or have measurable targets. A lack of funding combined with inadequate professional capacity are likely contributing factors and a reason why implementation has been slow.

"Ending violence against children is the right thing to do, a smart investment to make - and it's possible. We can and must create a world where every child can thrive," Howard Taylor of the End Violence Partnership said.

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News Network
March 31,2020

Washington, Mar 31: The United States has performed over one million coronavirus tests so far, said President Donald Trump on Monday.

"Today, we reached a historic milestone in our war against coronavirus. Over 1 million Americans have now been tested, more than any other country by far, not even close," Trump said during a press briefing.

US Health Secretary Alex Azar said that approximately 100,000 samples are tested for coronavirus daily.

The number of novel coronavirus (COVID-19) cases within the United States surpassed 150,000 and the death toll has reached 2828, according to Johns Hopkins University. 

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Agencies
June 16,2020

India continues to remain ranked 43rd on an annual World Competitiveness Index compiled by Institute for Management Development (IMD) with some traditional weaknesses like poor infrastructure and insufficient education investment keeping its ranking low, the international business school said on Tuesday.

Singapore has retained its top position on the 63-nation list.

Denmark has moved up to the second position (from 8th last year), Switzerland has gained one place to rank 3rd, the Netherlands has retained its 4th place and Hong Kong has slipped to the fifth place (from 2nd in 2019).

The US has moved down to 10th place (from 3rd last year), while China has also slipped from 14th to 20th place. Among the BRICS nations, India is ranked second after China, followed by Russia (50th), Brazil (56th) and South Africa (59th).

India was ranked 41st on the IMD World Competitiveness Ranking, being produced by the business school based in Switzerland and Singapore every year since 1989, but had slipped to 45th in 2017 before improving to 44th in 2018 and then to 43rd in 2019.

While its overall position has remained unchanged in the 2020 list, it has recorded improvements in areas like long-term employment growth, current account balance, high-tech exports, foreign currency reserves, public expenditure on education, political stability and overall productivity, the IMD said.

However, it has moved down in areas like exchange rate stability, real GDP growth, competition legislation and taxes.

Arturo Bris, Head of Competitiveness Center at IMD Business School, said India continues to struggle on the list and the recent country rating downgrade by Moody’s reflects the uncertainties regarding the economy’s future.

"In our ranking this year, we again emphasize the traditional weaknesses of India -- poor infrastructure, an important deficit in education investment, and a health system that does not reach everybody. For India to follow the path of China, it must stress its intangible infrastructure," Bris said.

"In a less global world, with China, USA, and Europe looking inwards, currencies like the rupee (and the Brazilian real for instance) are going to suffer and display high volatilities.

"Moody’s has threatened the country with a downgrade to junk and that would put India in a terrible position to attract foreign capital. So the urgency for the government should be to fix the short-term problems—and this requires to improve the credibility of the government itself," Bris added.

With the exception of Singapore, the Philippines, Taiwan and the Korean Republic, most Asian economies dropped in rankings this year, the IMD said.

The reason for the Asian economies’ less stellar performance as a region, this year is partly the result of the trade frictions between China and the US, particularly because these economies are highly dependent on trade with China.

About Singapore, which moved to the top rank last year, the IMD said its position is largely driven by the relative ease of setting up business, availability of skilled labour and its cutting-edge technological infrastructure.

The IMD said the impact of COVID-19 on the competitiveness ranking has partially been captured by executives’ opinions about the effectiveness of the different health systems.

In the ASEAN countries included in the survey, only Singapore and Thailand have a positive performance in the effectiveness of the health infrastructure.

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