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 significant sales growth during the National Day "golden week" holiday, though industry leaders caution the gains may be modest due to cautious consumer spending. Authorities estimated around 1.29 million mainland visitors would arrive between October 1 and 7, surpassing last year's figures by over 5%.
Retailers are offering discounts, rewards, and events to entice visitors. Gary Ng Cheuk-yan of Natixis Corporate and Investment Bank noted that total retail receipts may still increase, but growth will likely be proportional to visitor arrivals due to a stronger yuan making shopping more affordable but cautious consumer sentiment limiting spending.
Cosmetics retailer Sasa expects high double-digit growth, attributing it to mainland visitors drawn to its products after positive reviews on social media. Sasa is running a shopping festival promotion until mid-October. Retail sector lawmaker Peter Shiu Ka-fai expects gold and jewelry, dried seafood, and cosmetics sellers to see near-10% growth.
Andrew Kwok, president of the Hong Kong Small and Medium Enterprises Association, predicts a similar increase. However, the restaurant business in Wan Chai experienced a quieter festival break. Michael Leung from the Catering Services Association expects restaurants to handle about 20% more business over the National Day break. Hotels are seeing varied booking patterns.
Metropark Hotel Mong Kok reported nearly 95% reservations for the first four days and 80% for the remaining days of the golden week, with an average room rate of HK$1,200. Deputy general manager Peter Tam said business would be on a par with last year. Lawmaker Alan Chan Chung-yee, COO of Miramar Group, expected below-60% occupancy at his hotels, but last-minute reservations could push final occupancy above 90% at Tsim Sha Tsui and Causeway Bay properties.
Both hotel executives noted guests tend to dine and explore outside their properties. To attract younger visitors during Halloween celebrations, Chan suggested offering costume rentals and discounts. A recent survey found that nearly six in 10 retailers expected sales to rise, while over two in 10 expected flat sales, and nearly two in 10 feared declines.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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