Why Hong Kong luxury sales won’t suddenly rebound now mainland Chinese shoppers are back
- It will take almost a year for luxury spending in Hong Kong to return to levels seen in the first half of 2019, experts predict, despite borders reopening
- Logistical issues surrounding cross-border travel with mainland China, closed-down stores, and the rise of shopping in Hainan all hamper a speedy recovery
The end of Beijing’s zero-Covid policy came as a great relief to the luxury sector, which from late 2019 had been at the mercy of store closures, dampened demand and sudden lockdowns in its most lucrative market. But it is becoming increasingly clear that a dramatic rebound isn’t on the cards for Hong Kong’s high-end retailers.
Domestic travel within mainland China had fully recovered in January, with leisure travel up 10 per cent from January 2019, according to luxury analytics firm Bernstein.
But short-haul trips to destinations including Macau and Hong Kong only reached 11 per cent of 2019 levels. Hong Kong received around 104,000 mainland Chinese visitors during the Lunar New Year holiday period from January 21 to 26, compared with about 690,000 during the same period in 2019.
Comparing the two neighbours and their opening up again to mainland Chinese visitors, Macau, which didn’t require visitors to prepare a health assessment document nor a 48-hour Covid-19 test, is seeing a speedier recovery, with Hong Kong “still lagging behind”, Bernstein analysts write.
But Hong Kong on Monday dropped the need for PCR tests for travel to and from the mainland, which will help the city catch up.
