Hong Kong’s Handout During Coronavirus Crisis Explained

  • Hong Kong is removing tax on businesses and giving away cash in 2020.
  • Coronavirus crashed the tourism industry and has placed the housing market vulnerable to a correction.
  • Hong Kong’s economy could struggle to recover over the next five years.

Desperate times call for desperate measures, and the government of Hong Kong is bumping up its spending to help its residents as coronavirus fears intensify.

Every permanent resident above the age of 18 will receive around 10,000 HKD, worth around $1,300. In the foreseeable future, at least until the end of 2020, residents will not have to pay taxes on salaries with a 20,000 HKD cap.

It shows just how serious coronavirus is

The robust economy of Hong Kong, which has remained strong over the past decade, has started to dwindle in the past 12 months.

Regular protests and the coronavirus outbreak caused the tourism industry of Hong Kong to take a big hit.

Hotels and restaurants have started to see a plunge in sales, causing instability in one of the largest industries in the region that supports the livelihood of hundreds of thousands of local residents.

The travel industry of Hong Kong was already in decline before the coronavirus outbreak geared towards it peak.

On January 25th, Hong Kong declared the coronavirus outbreak as an “emergency” — the city’s highest warning tier — as authorities ramped up measures aimed at reducing the risk of further infections spreading. | Source: DALE DE LA REY / AFP

As the World Health Organization (WHO) began to consider the possibility of the outbreak turning into a global pandemic, the tourism market of Hong Kong plummeted.

According to a report from Forbes, visitors to Hong Kong dropped by a staggering 99 percent in February, leaving its economy at risk of turmoil.

In response, the government has included various benefit packages for all permanent residents in its official 2020-2021 budget.

The government primarily targeted small businesses and low-income employees,…

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