HK Tourism Board: Chinese still spending big in Hong Kong

HONG KONG – Big-spending tourists from the mainland may not be immune to the China’s economic slowdown but their spending in Hong Kong is still on the rise, says the Hong Kong Tourism Board.

HONG KONG – Big-spending tourists from the mainland may not be immune to the China’s economic slowdown but their spending in Hong Kong is still on the rise, says the Hong Kong Tourism Board.

“Spending [of high-end mainland tourists] in Hong Kong is not down. It’s still up against the past quarter but we see the rate of increase is slowing down,” said Angela Chong, a spokeswoman for the board.

Although the board did not reveal the exact numbers, Chong said that according to its survey of mainland tourists leaving by air, spending slowed a bit at the end of last year, picked up slightly during the Lunar New Year and then slowed again.

A visitor who spends HK$100,000 or more in a trip is defined as a super spender, according to the board.

“In the past few years, we have seen steep increases in spending. Although the increase has slowed a bit, in absolute terms, it’s still up. The percentage is still very high compared with visitors from other regions,” Chong said.

The deceleration can be partly attributed to the slowing growth in the mainland economy and a ban on official spending on luxury items for gifting in October last year.

E-commerce, although still quite a new sector, is also providing a new outlet for mainland luxury spending, competing with Hong Kong.

Much of the appeal for mainland shoppers to buy luxury goods in the city is lower prices as high-end brands often charge a 10 to 40 per cent premium on goods sold on the mainland.

However, a number of websites, including some directly operated by brands such as Burberry, Coach and Armani, alongside the likes of Netaporter, Shangpin, Xiu and Yoox, are eroding Hong Kong’s competitive edge.

Despite a cooling in luxury spending growth, an April report from the Fung Intelligence Briefing Centre said it should remain robust, listing steady growth in the ranks of the middle class, high consumer confidence, expansion of the credit card market and rising buying power of women.

It also noted that the decline in corporate gifting could prove to be a temporary phenomenon related to the leadership transition.

However, any cooling has yet to be felt among the five-star hotels across the city, which reported operating at nearly full capacity.

Langham Place Hotel in Mong Kok said mainland guest growth was on par with last year while W Hotel said it was enjoying similar year-on-year increases in high-spending mainland tourists.

Sun Hung Kai Properties, which operates several shopping centres including IFC mall, APM and New Town Mall in Sha Tin, said its properties continued to record double-digit growth.

“Mainland shopper spending is keeping up a 10 to 15 per cent increase against last year,” a spokeswoman said.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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