Name: What Hong Kong’s protests mean for business | CNBC Reports
Uploaded: 2020-05-05T19:26:51.000Z
Duration: 7 min 52 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

I'm walking through Hong Kong's Causeway Bay,

it's one of the city's major shopping hubs and while things are calm right now,

it wasn't too long ago that this was at the heart of the city's

pro-democracy protests - ones that have been paralyzing the city for months.

Demonstrations have been scattered throughout the city,

and even a sit-in that resulted in the closure of the airport.

The turmoil has shaken up Hong Kong's economy which in 2019 entered its first

first technical recession since the financial crisis.

Hong Kong is one of the richest cities in the world, but months

of unrest and uncertainty is  impacting business both big and small.

Protesters have sprayed this wall with graffiti which has since been covered up

I've just discovered more graffiti by protesters - this here says: "We do this

It's been really quite significant and it's especially hit retail, entertainment,

hotels, those kind of businesses now  we actually see a real reduction in

mainland tourists and that's been a biggest hit of all.

Hong Kong's economy shrunk in the second and third quarter of 2019

It was the first time in a decade that its  economy weakened for two consecutive quarters.

The government forecasts the economy will contract by 1.3 percent in 2019

overall and the city is set to record its first budget deficit in 15 years.

The special administrative region is seeing less money from outside its borders,

and many Hong Kong residents are  changing their spending habits as well

This is one of those businesses that has come out publicly to say it stands with

Platforms have popped up showing maps of businesses believed to be

to be supporting the protests, as well as ones that are not.

And people are backing their side with their dollars.

Just look at this Instagram account which has amassed more than 180,000

Its aim: to show and promote businesses that are in support of the protests.

I decide to visit some of the businesses on the map.

One of them is this restaurant chain that advertises its stance proudly

This is a grassroots movement that's distinguished by the color yellow, which

essentially says they support the Hong Kong movement, the Hong Kong protests.

Blue on the other hand is used for businesses perceived to be backing

the government and police. People can use this sticker to scan a QR code which

will take them to Google Maps. The map then reveals assumed yellow and blue

businesses around the city. Inside the restaurant I notice even the bottom of

the receipts are a nod in support of the protesters. So, are the customers aware

of the politics? One tells me he thinks everyone inside is conscious of the

business' stand on the protests and for him it's one of the reasons he's eating there.

It's my freedom, right? It's my freedom on how to spend my money.

But it's a divisive time right now. Many of the businesses I visit

I finally find a bookstore that's willing to be interviewed.

The store features art and literature related to the protests.

Are you worried at all as a business, taking a stance for one side, that it

Not really because I heard some pros and cons about this so-called

the yellow economic circle, but then I see it in a more positive way as people

are getting more solidarity through economic ways.

but make no mistake, despite being on the so-called yellow side, he says he doesn't

particularly like that there are sides to begin with.

We want to be unified in the end. We are not aiming to segregate people.

While this store is one of the few that I find that's willing to get involved

in the politics, most want to stay out of it and it's hard to blame them.

Some global companies like Starbucks have been targeted and vandalized for

their perceived support of the government and many have already taken hits to their

sales as a result of the protests, including this bar in Hong Kong's Central District.

The implications of protests during the week have slowed business down.

Roadblocks, more police presence, so people tend to go home after work

these days instead of going out for drinks  and dinners. Yeah it's been frustrating.

Massive disruptions to public transportation has sparked safety

concerns that have resulted in the cancellation of countless events

Hong Kong's tourism and retail sectors have felt the most pain as the city's standing

as a stable financial hub comes into question.

August is typically a peak season for tourism in Hong Kong, but in 2019,

visitor numbers during the summer month plunged by 40 percent.

Just look at this chart. Mainland Chinese visitors account for nearly

80 percent of tourists in Hong Kong. That dramatically decreased throughout the year.

The Chinese are not very happy about tour groups coming into Hong Kong.

They don't really want to see Chinese tourists in this kind of opposition and revolt

that you're seeing in Hong Kong: attacks with the police, the free news, this kind of thing.

The less of this kind of information that gets out to people in China,

It's not just retail that's been suffering, many hotels are dealing with record low

With some of the political unrest in Hong Kong, tourist arrivals are down here.

I can't lie to you - it's certainly impacted business, but you know being part of

such a huge hotel company and the funnel it allows to bring, we

That reduction in tourism is in part responsible for thousands of restaurants

closing and also hurting global  retailers like Prada and Louis Vuitton,

which are expected to close at least one location each.

Luxury brands are taking note of these closures.

Hong Kong is one of the top luxury shopping destinations in the world,

accounting for 5-10% of luxury spending globally and overall, retail sales have

While the protests were originally motivated by politics, many say

they've now become a platform for bigger issues.

It's so very expensive, one of the most expensive places in the world.