‘Golden era’ for Hong Kong retail is over as Chinese tourists continue to tighten their purse strings
Hong Kong’s retail sector has languished since the pandemic and analysts say it could be years before it bounces back.
The city’s retail sales have plunged 7.3% in the first seven months of the year compared with 2023, according to government data published Friday. That’s despite a massive 52.2% rebound in visitor arrivals during the period.
The city was once lauded as a shopping paradise, particularly for mainland Chinese tourists, often seen exiting luxury stores with multiple bags in hand. Mainland China accounted for nearly 90% of the 22.16 billion Hong Kong dollars ($2.84 billion) spent by same-day visitors and 67% of the HK$119.1 billion spent by overnight visitors in 2023.
But analysts said the golden days will not return “for a long, long time” as mainland Chinese tighten their purse strings under the cloud of economic uncertainty.
“The reduced spending of middle class Chinese tourists in Hong Kong can be attributed to the economic slowdown — started by the property downturn, shift in consumption patterns, increased focus on savings due to challenging employment prospects and changing travel preferences,” said Christine Li, head of research for Asia-Pacific at Knight Frank.