Unrest threatening Hong Kong’s business reputation
Hong Kong sells itself globally as a window into mainland China.
Protests at Hong Kong’s airport on Tuesday caused a second day of travel mayhem at one of the world’s busiest air-transport hubs, further threatening the city’s reputation as a stable place for doing business.
Travelers trying to catch their flights were met with an announcement that check-in was suspended from late afternoon because terminal operations were “seriously disrupted,” causing at least 120 flights to be cancelled.
It’s a sharp contrast to the normal experience at Hong Kong’s sleek and modern airport, where check-in and boarding are usually carried out quickly and efficiently.
Analysts said the disruption could make foreign investors think twice about setting up shop in Hong Kong, which has long prided itself as being Asia’s leading business city with convenient air links for executives traveling across the region.
Hong Kong has long sold itself to the international business community as a window into mainland China and the airport is one of the most visible symbols of its status as a global hub. If the disruption drags on, “that reputation will take a bit of a beating up,” said Andrew Charlton, managing director of Aviation Advocacy, a consultancy.
“It becomes more difficult to think, ‘Well yeah, Hong Kong’s a stable place, I should be doing business or I should be setting up my regional office there.’”
The protests began more than two months ago against a China extradition bill and have expanded into calls for democratic reforms. Hong Kong authorities have denounced the demonstrators as rioters.
After weeks of neighborhood confrontations with police, the protesters’ decision this week to take their movement to the airport makes a more direct economic impact on business travel and tourism.
There were already signs business travelers were looking elsewhere.
“Some customers have shown a decline in travel bookings to Hong Kong in June and July, as a number of countries have issued safety advisories urging travelers to exercise caution,” said Julian Walker, a spokesman for travel management platform CWT, formerly known as Carlson Wagonlit.
It was too early to know how the disruption to the airport had affected bookings, he said.
Hong Kong’s international airport was built on land reclaimed from the sea and opened in 1998, replacing an aging airstrip in the middle of the crowded, mountainous city.
The airport was the world’s eighth busiest airport last year, but came second in terms of international passengers, with 75.3 million passing through in 2018, according to preliminary data from Airports Council International.
It’s also the world’s busiest air cargo hub.