Over 10% of retailers operating in Hong Kong might close down by the end of the first quarter of next year, as violent protests and social unrests continue, directly affecting tourism in the region. This is the conclusion of the city’s retailing group Hong Kong Retail Management Association (HKRMA).
The organization said that about 7,000 licensed retailers out of the current 64,000 operating in the financial hub would be closing down in the next six months.
Hong Kong’s retail sales tumbled by 25% in October compared to the same period in 2018, which is the biggest drop ever. Elsewhere, tourist arrivals declined by 43.7% in October.
HKRMA's chairwoman Annie Tse Yau On-yee explained:
“We are talking about
survival among retailers. It is going to be quite serious.”
The association stated that about 97% of respondents had noted losses since the protest began in June. 30% of them said they might be forced to cut jobs in the coming months, losing 5,600 jobs in total.
The survey was conducted between October 29 and November 22. It involved chain stores and small retailers, reaching 176 companies that run 4,310 stores in Hong Kong.