Hong Kong protests hit city where it hurts – in the wallet

Analysts say extradition bill protests have soured our appetite for spending, and escalation could hit city hard

Still licking its wounds from the US-China trade war, retail sales suffer as senior economist paints gloomy picture of future

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The impact of the extradition bill protests are now being felt in the retail sector. Photo: Xiaomei Chen

Published: 8:00am, 8 Jul 2019Updated: 5:18pm, 8 Jul 2019

Hong Kong’s ongoing political unrest has soured shoppers’ appetite for spending, damaging retail sales and adding to the city’s economic woes, analysts have said.

The HK$10 million (US$1.28 million) worth of damage done to the Legislative Council complex in Admiralty on July 1 by protesters angry at the now-suspended extradition bill, put the city on the global radar for the wrong reasons.

And any further escalation could potentially drive tourists away and reduce local shoppers’ desire to spend, analysts, retailers and shoppers whom the Post talked to have warned.

The city is still licking its wounds from the US-China trade war, which saw retail sales decline for the fourth straight month in May this year.

“The overall picture is gloomy,” said Hong Kong General Chamber of Commerce senior economist Wilson Chong Sze-kit of the consumer spending outlook. “If the political tensions continue or escalate, they could take a bigger toll on retail sales, by straining consumer sentiment of local households, as well as pushing tourists towards other destinations.”

Pauline Wong, owner of The Tree stationery store in Causeway Bay, has seen her business hammered by the protests. Photo: Roy Issa

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