Hong Kong's summer of protests leaves economy bruised and battered

As pro-democracy protests grind on for a fourth month, Hong Kong has been left counting the cost, with the city's tourist industry battered and businesses forced to lay off staff as they struggle to stay afloat.

Images beamed around the world of black-clad demonstrators battling police in full riot gear on streets usually lined with shoppers have led travellers to shun the financial hub.

And with protesters and the government showing no signs of backing down, there are worries things will not improve any time soon.

August witnessed the biggest fall in overseas visitors since the SARS epidemic of 2003 claimed nearly 300 lives and unleashed widespread panic in the city, according to government data.

Among the worst-hit areas is Causeway Bay, a normally bustling commercial precinct home to a slate of luxury brands where last weekend shoppers and bystanders were caught up as police fired volleys of tear gas at masked youths.

A neighbourhood pharmacist, who asked to be identified only by his surname Chiu, told AFP the overseas customers who accounted for half his sales had slowed to a trickle since the protests began in June.

"The social atmosphere is not good," he said, adding that he has repeatedly had to shut his shop as tear gas canisters bounce down the street. Takings, he says, have tumbled 40-50 percent.

"Local customers also seem to buy less."