One million fewer tourists than expected would visit Hong Kong this year because of the US terror attacks, the Tourism Board said yesterday.
Executive director Clara Chong Ming-wah said tourism would suffer negative growth in the coming months. As a result the board had downgraded its forecast growth for the year from 7.8 per cent to zero.
The board had originally expected 14 million visitors to come to Hong Kong this year but the number of arrivals has dropped sharply since September 11.
'In the first eight months we recorded a 7.4 per cent increase, but after the attacks the total number might remain the same as last year,' Ms Chong said.
Simon Clennell, assistant manager of the board, said Hong Kong could lose about $5 billion in expected revenue.
The chairman of the Hong Kong Federation of Restaurants and Related Trades, David Ng Tak-leung, estimated business for the food and beverage industry would be reduced by 10 to 20 per cent, representing a $3 billion loss in revenue. But he said mass lay-offs were unlikely.
'Every restaurant is already very short of staff,' he said. 'I don't see much room for further reduction. But the Government must improve the business environment, otherwise some might have to close down.'