The Omicron plague of Hong Kong is making business difficult.
Not only will the new crossroads reduce costs for retailers and restaurants, the downfall of flights that rely on them to bring everything from Australian cherries to Wagyu beef in the economy has been set up to raise prices and raise prices.
Cathay Pacific Airways Ltd., the city’s largest interconnected airline, has banned hundreds of flights. The amount of property can be reduced by less than one-fifth of the plague before it occurs. Operating costs can increase by 40% within three weeks. Exporters expect the price of fruit to increase by 10%.
Flight at Hong Kong International Airport As Hong Kong Leaves Flight Between Omicron
A Cathay Pacific flight is departing from Hong Kong International Airport on January 6.
Following the “Covid Zero” approach, Hong Kong has closed bars, gymnasiums and theaters. At the same time, the supply chain that has already broken down in the exporting city has reached its peak, with businesses experiencing delays in bringing in goods such as fruit and yoghurt as well as seafood and cheese.
The threat of omicron-operated surgery has devastated Hong Kong, where the vaccine is one of the lowest economically developed countries. Although officials have found many cases in the area so far, they are following at least three ways of communicating.
Fearing the omicron diversity, the government has evicted residents living on previously provided flights, forcing Cathay to reduce cargo flights. The plane operates only about 20% of its monthly runoff due to a lack of personnel. Travel exports were also banned from eight countries, including the US, UK and Australia, and also reduced shipping volume.
The two separate incidents are “causing a huge shortage of cargo space,” said Gary Lau, chairman of the Hong Kong Association of Freight Forwarding & Logistics.
Businesses that rely heavily on imports are the ones experiencing these problems. Retailers expect a shortage of everything from eggplant to crab. Flowers from Europe in the coming Lunar New Year may also be a necessity, as well as fruits and vegetables exported from places like the UK and the Netherlands.
Hong Kong-based restaurants and cafes, which had just started to recover after months of previously banned, can now miss a window that costs a lot of money during a Chinese holiday. Sales from both regions reached HK $ 326 billion ($ 42 billion) in the first three quarters of last year after the city revived its cultural regulations. This figure was 30% lower than the same period in 2018, last year before several demonstrations in Hong Kong, which led to economic collapse.
Many businesses are having nightmares. Richard Poon, general manager of On Kee Dry Seafood, said orders for canned abalone and conch were settled in Australia. His team now relies on air travel for more than 30% of its revenue, he said, adding that the store had increased flight orders around November in preparation for the holidays.
“The donations will be less,” he said. “We regret that we may not be able to complete some of the items to sell to customers.”
Jacques Derreumaux, co-founder of Cheese Club and WHAT’sIN, a food service provider that supplies French cheese and fruit and vegetables, said it has also changed shipping through cargo flights as fewer flights have been banned from France. Continued disruptions on the flight will “be difficult for all customers” if they take too long, he said.
‘Logistics chain falls’
Hong Kong’s stricter virus laws are closely linked to the Chinese, which still keep the disease at bay, even though many in the world are changing to becoming infected. Yet the city of 7.4 million people relies on imported goods to survive in a way that the rest of the world cannot afford, raising concerns that the virus-seeking system of isolation is unstable.
Prohibition of travel will be a rise in retail prices, says Michael Li, deputy secretary general of the Hong Kong Chinese Importers ‘& Exporters’ Association. Li predicted a long recovery time and a rise in transportation costs by about 30%.
Buyers can see new flower prices rise by 20% to 30%, for example, because they are usually exported to Hong Kong from Europe, Li said. Prices can also be raised in Japanese restaurants, which specialize in seafood, as well as Chinese restaurants that offer seafood parties at festivals.
Lau, of the Hong Kong Association of Freight Forwarding & Logistics, said there were already signs that “the airline is falling apart.”
“If the government does not ease the burden of the epidemic, we hope the situation will not change in the short term,” he said.