On the first day of October, Hong Kong university students were holding  demonstration for democracy, when Chineses were celebrating the national day.  I do not want to judge the right and wrong between Hong Kong university students and Chinese government. I just want to analyze how does this politic action influence the economy.

According to Chinese national regulation, Chinese people can get seven-day holiday in oder to celebrate the national day. Since this is a rare holiday for most of people with jobs, many people choose traveling and shopping with their family members.

Formerly, many people would choose traveling to Hong Kong because of its duty-free goods. However, the demonstration stop  this travelers. Recently, the central Hon Kong such as Mongkok, a bustling shopping and residential district across the harbor in Kowloon has been occupied by thousands of pro-democracy supporters. Now it is even difficult for inhabitant to pass through, how can travelers go shopping here. Moreover, travelers would give up this great tourist spot because they are also afraid of the tension between students and the police. After all, nobody want to expose themselves to danger.

 

By prediction this week’s protests will cost retailers about $ 280 million in lost sales. Although just a golden week will not make a significant effect on Hong Kong’s economy, a persistent “Occupy” movement may cause a far-reaching influence.

 

 

Reference:

http://www.ft.com/intl/cms/s/0/481ce604-4ad0-11e4-839a-00144feab7de.html?siteedition=intl#axzz3FCVT0H5D

http://www.ft.com/intl/cms/s/0/598a7152-4ab4-11e4-bc07-00144feab7de.html#axzz3FCVT0H5D