Hong Kong retailers, hoteliers gloomy over Lunar New Year business prospects
Retail group expresses business concerns ‘as people have been cautious about their spending’, but hopeful regarding mainland tourists
Hong Kong’s retail and hotel sectors have sounded a cautious note about business prospects for the coming Lunar New Year holiday, noting residents are hesitant to spend money and mainland Chinese visitors may opt for shorter stays.
The pessimistic outlook from businesses coincided with the release of the latest retail figures on Thursday, with sales falling by 7.3 per cent to HK$31.7 billion (US$4 billion) in November, marking the ninth straight month of decline.
The Hong Kong Retail Management Association said nearly 60 per cent of the companies it surveyed expected a decline in business during the period around Lunar New Year, compared with last year.
The period spans the two weeks leading up to the Lunar New Year break, which will run from January 29 to February 2.
“Hongkongers travelling abroad during long holidays remains a concern to the retail sector in January. We are also worried about reduced spending, as people have been cautious about their spending,” association chairwoman Annie Tse Yau On-yee said.
“But the multi-entry permits have brought hope to some retailers as these customers can bring in more people and business growth.”
