Mainland shoppers line up outside a Louis Vuitton store in Hong Kong. (Photo: People.cn)
(ECNS) – Many Hong Kong retailers object to the idea of curbing tourists from the Chinese mainland for fear of hurting their sales.
The proposal, under discussion by a government panel led by Chief Executive Leung Chun-ying, would probably cut HK$25 billion ($3.2 billion) in retail sales, according to market estimates.
A vendor who sells luggage at Ladies' Market in Mong Kok said the plan, if passed, would force him out of business. He said he used to make HK$3,000-4,000 ($387-516) a month, but now the revenue barely covers his costs.
Luk Fork Jewellery Chairman Wong Wai–sheung said mainland visitors contribute 60 percent to the company's business, and fewer visitors would put a huge dent in profits.
A spokesperson for cosmetics and fragrance retailer Sa Sa International also said cutting arrivals from the mainland would add to the woes of an already sluggish market.
The idea of curbing mainland visitors is fermented by the surging pressure on Hong Kong's public infrastructure and growing tensions between local residents and mainland Chinese.
However, mainland visitors have a huge positive impact on the local economy, as Hong Kong's retail industry has doubled since 2003, when the government eased restrictions on tourism. Also, the proposal would affect about one million people who work in tourism-related jobs.
Hong Kong Polytechnic University professor Chung Kim-wah suggests the proposal focus on restricting visitors who make multiple visits. He called for a revamp of the multiple-entry visa that allows holders to re-enter Hong Kong without applying for a new permit each time.
Hong Kong Commerce and Economic Development Bureau Secretary So Kam-leung said the government has finished an assessment of the city's tourism capacity and will work to ensure the healthy development of the tourism industry.
So also mentioned an option of building shopping malls along the border to cater to mainland shoppers.
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