End Occupy protests to give small businesses a chance to recover, before it's too late
Felix Chung calls on protesters to withdraw before their illegal occupation causes small businesses already suffering to retrench - a no-win situation for everyone in Hong Kong
It has now been more than a month since students and protesters began unlawfully occupying several main roads in Mong Kok, Causeway Bay and Admiralty.
There can be no doubt that the Occupy movement has caused significant damage to the Hong Kong economy. Those directly affected include the retail, tourism, catering and transport sectors, small and medium-sized enterprises as well as microenterprises. They are all now facing the most difficult conditions since the severe acute respiratory syndrome outbreak in 2003.
I very much respect protesters' right to voice their opinions. However, they should, at the same time, respect the rights of others - for example, road users - and take into account the interests of the general public.
Most importantly, they should respect the rule of law. Their protest has greatly affected the business sector and that will, in turn, affect the whole economic situation and competitiveness of Hong Kong, and ultimately the employment of local people.
The inconvenience caused by blockading roads has resulted in a decline in customer sentiment. In mid-October, the Hong Kong government said that the Commerce and Economic Development Bureau had met 20 commerce organisations or associations of different trades to better understand the impact of the Occupy movement.
According to the information gathered, SME retailers in the occupied areas have experienced a drop in business, of up to 80 per cent in some cases. Associations say some overseas clients have cancelled their business trips to Hong Kong, while exhibitors have withdrawn from exhibitions and conventions. All this has also affected hotel bookings and receipts at tourist attractions in some areas.
Meanwhile, a survey conducted by the HKSMEA business association has revealed that the majority of the SMEs said they had been affected or severely affected by the Occupy movement, while more than 60 per cent said daily turnover had dropped by 40 per cent or more. Average daily losses for each amounted to over HK$11,000 .
Moreover, the Hong Kong Taxi Association and the Federation of Hong Kong Kowloon New Territories Hawkers Associations both reported a drop in business for their members as a result of the protests, by about a third and 70 per cent respectively.
These figures show that SMEs and microenterprises are now on the edge of a precipice and cannot withstand the impact of the Occupy movement for much longer. At any time, cash flow is a major challenge for SMEs and microenterprises as they need to pay rent and wages.
If the current protests continue, they will inevitably affect the livelihood of frontline employees. Many of them may be the parents or family members of protesters on the street. It will be a no-win situation. Thus, students and protesters really must withdraw from the main roads in Mong Kok and Causeway Bay to give SMEs and microenterprises a chance to recover.
Although the overall impact of the Occupy movement will only be fully ascertained with the release of economic data in the next quarter, we can already see that the protests have had a negative impact on the special administrative region's international image and on investor confidence.
There have clearly been other effects as well. An official start date - November 17 - has finally been announced for the long-awaited Shanghai-Hong Kong cross-border share trading link. Although no official reason was given for the delay in Beijing's approval, many believe it was related to the political uncertainty brought about by the protests.
Financial Secretary John Tsang Chun-wah has warned that if the movement continued, the Hong Kong stock market could face a loss of confidence. He also said that the protests threatened the economy, government operations and the rule of law.
I hope students and protesters realise political stability is crucial to the city's economic development. The strong rule-of-law tradition is an important foundation stone of Hong Kong. Students and demonstrators should realise that their protests are breaking the law and thus also bringing enormous damage to the rule of law.
Now more than ever, they need to respect the rule of law and court orders, and withdraw from the streets for the sake of all Hong Kong.
