Editorial | Putting an end to the unrest is key to reviving tourism industry
- The government has announced subsidies worth HK$100 million to help the ailing sector but this is more of a band aid than cure
Many questions remain after the government announced another round of relief measures – this time for the tourism industry, one of the hardest hit by the ongoing social unrest. Can the HK$100 million cash subsidies really help the sector? Who are the actual beneficiaries? More importantly, why should tourists even come here while the crisis is still raging?
The government does not seem to know the answers. But it hopes the incentive scheme for tour agencies – HK$120 for every inbound tourist staying overnight and HK$100 for an outbound tourist – can provide some relief. With 1,700 travel agents, 60,000 tour guides and 17,000 tour escorts in the city, and the subsidy capped at HK$60,000 for each company, the HK$100 million funding may not have the impact hoped for. But in light of the predicament facing the industry, every dollar counts.
How the money trickles down the tourism hierarchy is a legitimate question to ask. Tour agencies immediately voiced concerns about whether they would be forced to pass on the subsidies to customers as price discounts for package tours. Tour escorts also wonder whether they would benefit directly. It is important that the subsidies be used effectively to help the industry tide over its current difficulties. Hopefully, relevant sectors such as hotels, airlines, restaurants and logistics can also benefit.
How effective the scheme is obviously depends on whether tourists will come here. So far, 40 countries and regions have issued travel advisories to citizens visiting Hong Kong, with a few of them issuing alerts. In August, arrivals dropped by 30 per cent to 3.59 million year on year. The fall seems to have deepened in September and early October.
On a brighter note, a considerable number of tourists are undaunted by the unrest. Despite protest violence and traffic disruption, those who have the courage to come will realise that they can largely enjoy the city without encountering any major problems. Indeed, many locals have also adapted to the situation and sensibly avoid high-risk areas during weekends.
To many who are unfamiliar with the city, there are risks involved when they visit. But they could benefit from lower air fares and hotel rates, as well as shopping discounts. The streets and sightseeing attractions are also less crowded than usual.