Economic instability in Hong Kong's political sphere leads to significant job layoffs, according to the World Travel & Tourism Council's disclosure
In the heart of Asia, the city of Hong Kong has been grappling with the far-reaching effects of political instability, particularly on its vital Travel & Tourism sector. According to the World Travel & Tourism Council (WTTC), which represents the global Travel & Tourism private sector, the city is experiencing a decline in tourism that has led to substantial economic losses.
The WTTC predicts a loss of $8.4 billion USD in international visitor spending in Hong Kong for 2019, a figure that underscores the severity of the situation. This decline affects not only the tourism sector but also related industries like hospitality, retail, and transportation, resulting in economic losses and potential job insecurity.
In 2019, international arrivals between June and September were down 23% compared with the same period last year, and the number of visitors from mainland China to Hong Kong by air dropped by 53.3% between July and September. These statistics highlight the significant impact of political instability on tourist arrivals.
The full year figure for 2019 Travel & Tourism GDP contribution in Hong Kong is expected to be 16% below 2018 levels. Moreover, research shows a loss of $10.1 billion USD from Travel & Tourism total GDP in Hong Kong, with an expected loss of up to 90,000 jobs in Travel & Tourism employment.
The decline in tourism is not just an economic concern; it also raises safety and perception issues. Political unrest and strict security measures can create perceptions of instability and safety risks, deterring potential visitors who seek a secure and welcoming environment. Prolonged instability can tarnish a city's international reputation, making it less appealing to both tourists and business travelers.
The imposition of laws like Hong Kong’s National Security Law (NSL) has tightened control over political expression and activities, which can intimidate visitors and limit cultural exchange events. Curbs on media freedom and political dissent may also dissuade international visitors who value openness and freedom of speech.
However, Gloria Guevara, President & CEO of WTTC, believes that through public-private collaboration, effective communication, and continued efforts, the economic and human impact of political instability can be reduced. She also expressed optimism, stating that Hong Kong can prove resilient through this difficult time.
Bookings from the end of September to end of December this year, are down by 58.2% from last year, a trend that underscores the ongoing challenges faced by the city. Yet, despite these challenges, Hong Kong was among the top ten fastest growing cities for Travel & Tourism in 2018, a testament to its resilience and potential for recovery.
In conclusion, political instability in cities like Hong Kong can have profound and lasting impacts on the tourism sector, economic stability, and societal dynamics. The WTTC identifies political instability as the hardest crisis to overcome for destinations, yet with the right strategies and collaborative efforts, cities like Hong Kong can navigate these challenges and restore their vibrant Travel & Tourism sectors.
- The decline in tourism in Hong Kong, as a result of political instability, is causing not only the travel sector but also related industries like hospitality, retail, and transportation to suffer economic losses and potential job insecurity.
- The WTTC predicts that the political instability in Hong Kong will lead to a loss of $8.4 billion USD in international visitor spending in 2019, affecting the city's lifestyle, as the travel and tourism sector plays a significant role in its vibrant economy.
