Hong Kong retailers set for riot losses
By FashionUnited
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China suspended travel permits for shoppers
China last week suspended travel permits for domestic tour groups looking to visit Hong Kong becauseHong Kong retailers located near the protest sites such as Causeway Bay and Mongkok have had to close stores because of the unrest while protesters have also moved into Admiralty and Canton Road areas.
"Sales of luxury goods, cosmetic products, and consumer durables are definitely hard hit," Raymond Yeung, senior economist at ANZ wrote in a report.
As the Golden Week may be responsible for half of the month's total sales, market anecdotes suggest that store sales have declined by about 70 percent, the affected shops might have lost 2.2 billion Hong Kong dollars.
If the protests continue to drag on, Hong Kong's Q4 outlook will increasingly turn gloomy, noted ANZ Bank.
The US, UK, Canada, France, Italy, Germany and Australia have also issued travel warnings to their citizens travelling to Hong Kong, telling them to avoid the protest areas.
Image: Hong Kong riots
Hong Kong
Retail
Riots