Higher duty-free limit in Hong Kong draws lukewarm response among mainland shoppers
- Leader of trade body for retailers remains pessimistic due to high rents and salaries, says new threshold won’t stanch sector’s decline
A higher duty-free threshold in Hong Kong for mainland Chinese tourists drew a lukewarm response on Monday when it took effect, with an industry leader expressing pessimism on its effectiveness and warning of shops shutting down.
Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, the city’s biggest trade body representing retailers, said the measure would not provide much of a boost to the ailing industry.
“Business is declining rapidly, but the costs of rent and salaries are increasing significantly. Everyone will continue to suffer for quite a long period, and some retailers might not be able to withstand it,” she said.
“If they cannot balance their books, they will need to shut down, this is what we expect.”
The central government raised the duty-free threshold from 5,000 yuan (US$688) per trip to 12,000 yuan for mainland residents aged 18 or older. The limit could be further increased to 15,000 yuan, or HK$16,100, if they shopped at duty-free stores at border crossings.
Tong Miaomiao, a 40-year-old shopping centre operator from Guangzhou, said the new threshold was not as attractive as Hainan’s annual limit.
