Hotel and leisure operator China Travel warns protests could be ‘catastrophic’ for the economy as tourists shun Hong Kong
- The mainland focused travel company says the protests have taken a toll on occupancy and room rates at its properties in Hong Kong
- Company warns of belt-tightening after reporting an 11 per cent jump in first-half profit
The effects of the anti-government protests are reverberating across Hong Kong’s travel industry and could be “catastrophic” for the entire economy if it persists, according to a leading hotel and leisure operator.
“In the second half of the year, our operations in Hong Kong have indeed been affected by the complicated circumstances in the city,” said Fu Zhuoyang, chairman and executive director of China Travel International Investment Hong Kong, during a press conference on Monday where he announced an 11 per cent jump in first-half profit.
Hong Kong-listed China Travel operates hotels, resorts, ticketing and transport services and theme parks in the mainland.
“If the situation continues in the long-term, the results will be catastrophic, not only for [our company] but the whole of the Hong Kong economy.”
The ongoing protests in Hong Kong have led to a sharp decline in the number of mainland tourists, dealing a heavy blow to the city’s hotel industry. Room rates have currently dropped to as low as HK$73 at three-star hotels in Tsing Yi and to less than HK$200 in the tourist district of Causeway Bay.