HK$290m to help offset Occupy protest losses

A series of one-off measures to help businesses affected by the Occupy Central protests were unveiled in the budget yesterday, as well as fresh plans aimed at lifting the city's image.

The initiatives, totalling some HK$290 million, will also benefit businesses that operate outside the three core protest zones in Mong Kok, Admiralty and Causeway Bay.

Industry insiders welcomed the news, although they said the short-term measures could not help them recoup losses suffered during the protests.

In his speech, Financial Secretary John Tsang Chun-wah said the 79-day pro-democracy movement had affected the tourism, hotel, catering, retail and transport industries to varying degrees.

"Prolonged political bickering," he said, was detrimental to public administration and the international image of the city as a stable, law-abiding and efficient place. "It may even dampen investors' confidence in Hong Kong," Tsang said. "Such selfinflicted harm does not serve the city well."

While he said it was difficult to calculate the exact impact Occupy Central had on the city, he said the measures announced were necessary to keep the city competitive as he had seen a change in the business environment.

One of the sectors hit hard was the transport industry, as major thoroughfares were blocked by protesters. Tsang said he was waiving fees for vehicle examination for a year as commercial licences for taxis, light buses and franchised buses come up for renewal.

Chung Shing Taxi operates one of the largest taxi fleets in the territory with more than 700 vehicles. Managing director Cheng Hak-wo said: "It's better than nothing. [The measure] is like having a sweet to eat."

Taxi owners now need to pay HK$530 for the examination fee. Under the measure, Cheng's firm stood to save about HK$370,000.

The government also said that it will waive the licence fees for 1,800 travel agents, 2,000 hotels and guest houses, as well as 26,000 restaurants and hawkers for six months.

Yeung Wai-sing, chairman of the Association for Hong Kong Catering Services Management, said a 10,000 square feet restaurant, for example, pays about HK$15,000 in licence fees for half a year.

"The waiver is less than a day's revenue made by a restaurant, which amounts to HK$50,000 to HK$100,000," he said.

The government also said an additional HK$80 million would be allocated to the Tourism Board to step up its promotion efforts for the city in the coming year and rebuild the confidence of international investors' and tourists.

Another HK$26 million will be set aside for the Information Services Department to invite overseas media organisations and opinion leaders from around the world to visit Hong Kong.

But anti-Occupy group Defend Central said that the measures were not enough to compensate the losses, and urged the government to do more to help the affected industries in the future.