Ragasa’s Aftermath: Businesses Shattered, Billions Gone

Super Typhoon Ragasa, the world’s most powerful tropical cyclone so far this year, has left Hong Kong grappling with economic losses estimated at billions of dollars, with waterfront businesses among the hardest hit. While the overall disruption was less severe than past storms thanks to remote work arrangements and the continued operation of the stock market, experts warn that mounting financial damage from extreme weather is becoming the city’s “new normal.”  

The Hong Kong Observatory raised its highest No. 10 storm warning as Ragasa battered the city midweek, halting most daily activity for nearly two days. Massive waves and storm surges pounded coastal areas, with Tseung Kwan O emerging as one of the worst-affected districts. Restaurants lining the waterfront promenade were devastated as powerful waves smashed through glass doors and flooded interiors, sweeping away furniture, tableware, and equipment. 

Restaurateurs say the destruction runs into millions. Satpal Singh, owner of Bacaba, estimated damages of at least HK$3 million (US$385,700). The storm ripped his 120-seat restaurant apart—shattering wooden-framed glass doors, splitting marble tabletops, and even lifting the bar off the ground. All furniture, electrical systems, and CCTV equipment were written off, leaving the outlet’s future in doubt. “The restaurant business is very bad in Hong Kong now. It’s very difficult these days, and this is more of a problem now,” Singh said, adding that without insurance payouts or government assistance, he might be forced to close. 

Economists say the broader financial impact of Ragasa will be staggering. Simon Lee Siu-po of the Chinese University of Hong Kong estimates the city’s total losses at between HK$2 billion and HK$3 billion (US$257 million to US$386 million). Gary Ng Cheuk-yan, senior economist at Natixis Corporate and Investment Bank, warned that such figures could soon be routine as climate change drives more frequent and severe weather events: “Economic losses from extreme weather will become a new normal for Hong Kong, as well as the world.”

For many small businesses, however, the numbers represent more than abstract forecasts—they are a crushing reality. In Tseung Kwan O, where debris from smashed chairs and tables still litters the streets, owners say they are already struggling with a broader downturn in the restaurant sector. Ragasa, they fear, could be the final blow.

Source: SCMP