Hong Kong protests take a toll as companies flag impact

Hongkong and Shanghai Hotels

07/08/2019 07:51

HONG KONG, Aug 7 (Reuters) - Cathay Pacific Airways Ltd
 0293.HK  and the owner of Hong Kong's luxury Peninsula hotel
became the latest companies to highlight the impact of recent
protests on their business, as an escalating cycle of violence
clouds the outlook for the city.
    Millions have taken to Hong Kong streets in anti-government
protests that have intensified since mid-June, at times forcing
banks, stores, shopping malls, restaurants and even government
buildings to close as the demonstrations degenerated into
violent clashes between police and activists.  urn:newsml:reuters.com:*:nL4N2530UQ
    Hong Kong's flagship airline, Cathay Pacific, said on
Wednesday the protests reduced inbound passenger traffic in July
and travellers were weighing on forward bookings, as it reported
it swung to a half-year profit.  urn:newsml:reuters.com:*:nL4N25314Q
    Thousands of protesters descended on the Chinese-ruled
city's airport in July, where some chanted "free Hong Kong" and
others handed out flyers explaining the city's crisis to
tourists.  urn:newsml:reuters.com:*:nL4N24R29B
    Protesters plan to rally at the airport again this weekend,
potentially causing further disruptions after a strike on Monday
saw more than 200 flights cancelled. 
    The Hongkong and Shanghai Hotels Ltd  0045.HK , owner of the
opulent Peninsula hotel in the bustling shopping district of
Tsim Sha Tsui, said it too was worried about the impact of the
protests on tourist arrivals as well as the broader economy.
    "We are concerned about the effect this political
uncertainty may have on our results, especially given the
proportion of our income which is earned in Hong Kong," said
Clement Kwok, CEO of the hotel group, in an earnings statement
on Wednesday.
    In June, Hong Kong-based cosmetic and healthcare products
chain operator Bonjour Holdings Ltd  0653.HK  issued a profit
warning which it partly blamed on the protests. 
    What started as an angry response to a now-suspended
extradition bill, which would have allowed people to be sent to
mainland China for trial, now includes demands for greater
democracy and the resignation of Hong Kong leader Carrie Lam.
    Hong Kong retail sales, a key part of the city's economy,
felt a growing impact in June from the mass protests, falling
6.7% from a year earlier in the biggest decline since February.
 urn:newsml:reuters.com:*:nL4N24X2UB
    Many businesses in Hong Kong are already facing strains from
China's economic slowdown, a weak Chinese yuan and fallout from
the Sino-U.S. trade war.
    Tourism to Hong Kong, especially from mainland China, has
dropped markedly, weighing on hotel occupancy rates. Britain,
Japan, Singapore and Australia have issued travel alerts
following the violent protests.

 (Reporting By Anne Marie Roantree and Donny Kwok; editing by
Gopakumar Warrier)
 ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters
Messaging: annemarie.roantree.thomsonreuters.com@reuters.net))