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HONG KONG: Hundreds of parked tour buses are gathering dust in a container port in northern Hong Kong, having been off the road for 10 months since authorities banned non-resident arrivals to the city due to COVID- 19.
The area has been turned into a “bus graveyard,” said Freddy Yip, president of the Hong Kong Travel Agent Owners Association. He said the former British colony, which was the city’s top tourist destination last year, faces a similar fate in late November, when the government ends a broad wage subsidy program that has helped some 2 million employees. in all kinds of situations. industries.
The program was introduced in June and renewed in September, but the Hong Kong government has ruled out an extension beyond the end of November, citing the high cost, leaving many tourism-dependent businesses on the brink of collapse, unable to find other sources. income and unable to pay wages.
“If they can’t see any lights in front of them, they will just stop and cut their losses,” said Yip, 70, who has worked in the trade for nearly 50 years.
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A Hong Kong government spokesman said it will “keep a close eye on the latest situation and respond in a timely manner,” but did not elaborate.
About 56 million people visited Hong Kong last year. The city was ranked first in arrivals globally in 2019 by the research company Euromonitor International. Visitors, most of them from China, are drawn to its vibrant mix of cultures, spectacular harbor views, and world-class shopping.
The global financial center gets about 5 percent of its gross domestic product, or about $ 18 billion, directly from tourism, not counting money spent on local shops and restaurants. Hong Kong’s tourism sector directly employs about 260,000 people, according to the government.
Chinese visitors tend to spend more per day than the average resident on baby formula, cosmetics and luxury items, driven by the perception that Hong Kong has better quality standards than at home. That source of spending was cut in early February, when Hong Kong sealed its borders with China, with exemptions only for a small number of business travelers.
BUBBLE PROBLEM
Visitor arrivals have dropped between 96% and 99% year-on-year every month since February, according to government figures. A travel bubble with Singapore, which will allow a limited number of people to move between cities after being tested for the virus, will start this week but is not likely to halt that decline, industry executives said.
The deal allows travelers to waive the quarantine, but is initially limited to a daily flight of just 200 passengers each way. That’s a drop in the bucket for Hong Kong, which set its own record in January 2019 with 6.8 million visitors, including 5.5 million from China.
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Tour guide Mimi Cheung, 46, said she was pessimistic about the travel bubble, due to the limited number of people, strict regulations and high costs: around HK $ 2,000 (US $ 260) for the tests of Mandatory viruses, plus around HK $ 6,000 (US $ 774). to buy a tour in any city.
“The government should open the continental border in safe conditions. It will bring some hope, ”said Cheung, who has found a temporary job as a night security guard to support his parents and two children.
Hong Kong leader Carrie Lam has said reopening the border with China remains a priority, but Chinese officials have shown no indication they are willing to do so until virus cases drop to zero in Hong Kong. .
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The city government has been trying to stimulate local tourism by offering free tours for small groups, but operators say it has been of little help.
Dozens of travel agencies have told staff to take unpaid leave starting in December, saying they can no longer pay wages or rent, according to employees interviewed by Reuters, travel associations and media reports. local.
Violent street protests against the government in the second half of last year discouraged some tourists, leaving many operators without cash reserves to weather this year’s crisis.
The city’s meetings and conventions business is also likely to see a 90 percent revenue drop this year, equivalent to about HK $ 50 billion (US $ 6.45 billion), said Stuart Bailey, chairman of the Hong Kong Convention and Exhibition Industry Association.
The sector, which employs about 80,000 people, has had to cancel most of the events this year, he said.
“People are not optimistic that we will return to 2019 levels for at least 18 months to two years.”
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