Hong Kong's "Not So Golden" Week

Hong Kong needs to prepare for more stormy days ahead

Four days into "Golden Week", when mainlanders used to flood into Hong Kong and go on shopping sprees, clog up the MTR and restaurants, the local tourism and catering sectors are mourning the loss of HK$2.26 billion (US$292 million).

That's the number tourism sector lawmaker Yiu Si-wing estimated, saying a visitor would spend around HK$4,000 during their stay.

Only 918 visitors arrived from October 1-4, compared to 566,000 last year during the anti-government protests.

Mid-Autumn Festival kicked off Golden Week

"For hard-hit, tourism-related sectors such as hotels, retailers and restaurants, they all rely on local consumption to make up part of their losses, by 10 to 20 percent," he said.

Hotels did well this past long weekend, with many locals doing staycations, and hotels offering discounted packages. As a result occupancy levels were 80 to 90 percent, which at the beginning of the pandemic was in single digits, but in the last few months has hovered around 20 percent.

The number of mainlanders coming to Hong Kong plummeted 92 percent between January and August this year to just 2.7 million, compared with more than 34.5 million for the same period last year.

And Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, estimated the catering sector took in about HK$1.1 billion over the past four days, which was a drop of more than 25 percent from last year's takings of HK$1.5 billion.

Retailers still relying on local consumers

"The reduction in earnings over the past few days was mainly due to the social-distancing rules that limit eateries from serving customers at more than half capacity. Under these constraints, I think business turnover for the catering sector was satisfactory," he said.

This is Hong Kong's new reality and all industries need to embrace this new normal. Even if the coronavirus pandemic recedes significantly worldwide and people can travel again, Hong Kong is not going to see tourist numbers like before anymore given its recent political developments.

The new national security law has prompted many foreign governments to warn its citizens not to travel to Hong Kong -- even for an airport transfer -- for fears of possibly being detained. 

Last year's protests have severely tarnished the city's reputation as a shopping mecca, and the pandemic has exposed questions of needing so many luxury brand shops.

Hong Kong cannot depend on the mainland market anymore. It needs to rethink what kind of city it can be now that it is considered a dangerous places for visitors to come to. What kind of campaign can the Hong KongTourism Board launch when tourists are terrified they might be nabbed by China's secret police!

Not a relaxing sight to see riot police around

In addition, the local economy can't sustain the city either when many residents are packing up and emigrating elsewhere. 

The odds are stacked against Hong Kong. Anyone have any brilliant ideas?