Hong Kong’s hotel industry is struggling with a collapse in bookings after thousands of protesters shut down flights from the territory’s airport this week in an escalation of months of clashes with police.
Revenue from room sales is set to plunge as much as 50% this month, according to Yiu Si-wing, a Hong Kong lawmaker representing the tourism industry who said visits from mainland China that usually account for 80% of arrivals are down most as people fear for their safety.
Yiu said hotel occupancy rates that averaged 90% in the first half will fall by a third or more and that arrivals from the mainland to Hong Kong -- a key shopping destination for Chinese -- could slow to a trickle.
InterContinental Hotels Group, the U.K. owner of the Crowne Plaza and Holiday Inn chains, said the protests contributed to a slowdown in business travel in China.
Sun Hung Kai Properties Ltd., owner of the Four Seasons, and New World Development Co., which runs hotels including the Grand Hyatt Hong Kong, have seen their shares fall more than 20% from last month’s highs.
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