According to Hong Kong media reports, a series of violent attacks in Hong Kong have severely damaged the local tourism economy. The tourism industry has entered a "cold winter". Hotels have been the first to bear the brunt of the decline in occupancy rates, and they have urgently cut prices to "save the country." Unions are worried that if the violence continues, there may be a wave of layoffs in the tourism industry.

ΔData map: Avenue of Stars, a famous tourist attraction in Hong Kong.

Hotels cut prices to "save the nation" and put employees on unpaid leave

Violent attacks have frightened tourists, and the decline in the number of visitors to Hong Kong continues to expand. In the first five days of August, it fell 31% year-on-year, and in the second five days, the year-on-year decline expanded to 33.4%. The Financial Secretary of the SAR, Paul Chan Mo-po, revealed in a radio program on the 21st that the year-on-year decline in visitor arrivals to Hong Kong expanded to about 40% during the third five-day period in August (11th to 15th).

Many hotels have urgently cut prices to "save the nation", and some house prices have even fallen off a cliff. Some urban hotels charge a night rate for two people on Saturdays ranging from more than 200 yuan (HKD, the same below) to more than 500 yuan. In addition, the hotel's check-in price on the 21st is as low as 193 yuan, which is cheaper than an hourly room. If you compare the price of the same room this weekend with a month later, the price now is half price.

The "open source" policy has not yielded results, and some hotels have begun to "cut costs" and require employees to take unpaid leave. According to trade union sources, the InterContinental Hotel Hong Kong in Tsim Sha Tsui recently sent an email to employees, stating that the hotel was affected by social incidents and that hotel occupancy rates and catering revenue have dropped. In order to avoid further deficits, employees are required to take annual leave and unpaid leave in August and September.

Other news indicates that 10 hotels under the Cheung Kong Group issued a verbal notice to employees on the 21st, requiring hotel supervisory employees to take one day of unpaid leave in the rest of August and two days of unpaid leave in September; junior employees need to take one day of unpaid leave in September.

Lin Chi-ting, director-general of the Hong Kong Federation of Tourism Federation, said that tourists have dropped sharply in recent months, and hotel occupancy rates have gone from bad to worse. Some hotels that mainly cater to group travelers have seen occupancy rates drop to only 20% to 30%. He described that "from five-star hotels to guesthouses, no one is spared", and the housing and catering department is the hardest hit area. He pointed out that the current low hotel occupancy rate only reflects the situation in early August, and he is worried that it will worsen further.

Lin Chi-Ting also revealed that he recently received help from a member who was a European group tour guide, saying that the company had given one month’s notice of dismissal. “It is not a small company, but (Hong Kong) has been criticized so much that travel warnings have been issued everywhere, and the bosses are not optimistic about the prospects.” He believes that undercurrents of layoffs are gradually emerging.

ΔData map: Hong Kong buildings.

The impact of violent shocks has emerged, and second-hand property prices have continued to fall

The violent demonstrations in Hong Kong continue to have an impact on the property market.

Informed sources revealed that the original owner of a house with a usable area of ​​376 square feet (approximately 35 square meters) in Fanling Town, Hong Kong, asked for NT$5.3 million. However, seeing that the market was bleak, he wanted to sell it as soon as possible to cash out. After repeated reductions, he finally sold it for NT$4.8 million, a decrease of more than 9%, which was the lowest property price in the community after March.

It is worth mentioning that a very low-rise house with the same area was sold for 5.06 million yuan in May. However, after a series of violent incidents, this time the middle-rise house was more than 5% cheaper than the low-rise house.

Large-scale housing estates in Tseung Kwan O, which took turns reaching their peak in the first half of the year, recorded two low-price transactions in a row amid the falling market. Lin Zhijian, sales manager of Hong Kong Midland Property, said that a house by Metropark Bay was sold for NT$8.6 million at a price reduction of NT$300,000, with a practical price of NT$17,269 per square foot, which is 4.3% lower than the online valuation of a major bank. Another house in the same district has a usable area of ​​601 square feet (approximately 55.8 square meters). According to sources, the transaction price was 7.33 million yuan, and the practical price per square foot was 12,196 yuan, which was 3.2% lower than the bank’s online valuation.

(Original title "Violent impact has severely damaged Hong Kong's tourism economy, hotel price reduction industry may be facing a wave of layoffs")