Opinion

Why Hong Kong’s economy is more than capable of weathering the recent protest headwinds

Tourist arrivals are not a good barometer of the state of the economy, given that inbound tourism accounts for only 3.7 per cent of Hong Kong’s GDP

Meanwhile, Hong Kong has been growing in strength and attracting senior personnel in some areas, such as the legal sector

3-MIN READ3-MIN

Protesters tie black balloons to the railing at the Wan Chai harbourfront during a protest against the extradition bill on July 1. The protests have continued for over seven months, with Hong Kong slipping into recession in October 2019. Photo: Winson Wong

Anson Au, PhD, is an assistant professor of sociology, in the Department of Applied Social Sciences, at The Hong Kong Polytechnic University.

Published: 9:30am, 23 Jan 2020Updated: 9:53am, 23 Jan 2020

The protests that have gripped Hong Kong for over seven months have been credited with taking a heavy toll on the economy. The impact on the tourism sector has received particular attention – in October, for example, the number of visitors from the mainland dropped 46.9 per cent compared to the previous month.

These stark figures are compounded by anecdotal accounts of students, academics, businesses and professionals considering leaving Hong Kong.

Hong Kong entered a technical recession in October, with government officials and other commentators warning – some with resignation, others with delight – of darker economic times to come.

Although the damage the protests have done to the fabric of our civil society is clear, the extent of the economic damage has been exaggerated. Hong Kong’s economy is far more resilient than we have assumed and will certainly rebound in the long term.