Retailers expect ‘golden week’ sales growth, but trade groups warn of modest gains
Some Hong Kong retailers are forecasting double-digit sales growth over the National Day “golden week” holiday, but industry leaders have warned that the expected influx of mainland Chinese visitors may deliver far smaller gains across the sector as tourists remain cautious about spending. The cautious outlook came after authorities estimated that about 1.29 million mainland visitors were…
Hong Kong retailers anticipate double-digit sales growth during the National Day "golden week" holiday, though industry leaders caution that the influx of mainland Chinese visitors may result in modest gains. Authorities estimate around 1.29 million mainland visitors will arrive between October 1 and 7, with daily arrivals surpassing last year's numbers by over 5%.
Businesses are implementing discounts, shopping rewards, and events to entice visitors to spend more. Some hotels expect late bookings to fill their remaining rooms. Natixis Corporate and Investment Bank economist Gary Ng Cheuk-yan suggests that a stronger yuan may make shopping in Hong Kong more affordable, but consumer sentiment will likely limit spending unless businesses offer attractive discounts.
Cosmetics retailer Sasa remains optimistic, projecting double-digit growth in footfall and average transaction value due to increased mainland visitor interest driven by positive reviews on social media. Sasa plans to expand in tourist districts and run a shopping festival promotion from late September to mid-October.
Retail sector lawmaker Peter Shiu Ka-fai expects many shops to grow their business by nearly 10%, particularly in gold and jewelry, dried seafood, and cosmetics sales. Andrew Kwok Chi-wah of the Hong Kong Small and Medium Enterprises Association also anticipates a similar increase, citing mainland social media promotions and crowds at Victoria Park's Mid-Autumn Festival lantern displays.
However, some businesses, such as restaurants, have seen a quieter festival break. Michael Leung Chun-wah of the Association for Hong Kong Catering Services Management expects restaurants to have about 20% more business during the National Day break compared to a normal week, similar to last year's holiday. Nearly 4,000 food outlets are joining this year's discount campaign, up from about 3,000 last year.
Hotels are experiencing different booking patterns. Metropark Hotel Mong Kok's deputy general manager, Peter Tam, reports reservations reaching 95% for the first four days of the golden week and 80% for October 5 to 7, with an average room rate of around HK$1,200. He predicts business will be on par with last year. Some guests had arrived as early as September 27 to secure lower rates, while others planned to continue to Shenzhen or Macau after a short stay in Hong Kong.
Lawmaker Alan Chan Chung-yee, COO of Miramar Group, notes that hotel bookings are still below 60% at his properties, slightly behind last year's rates. He expects last-minute reservations to lift final occupancy above 90% at Tsim Sha Tsui and Causeway Bay properties. Both hotel executives emphasize that guests tend to dine and explore outside their properties.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
