Christmas is all around, but this holiday season, Hong Kong is expected to suffer as both locals and tourists are reining in their spending.
Christmas is in the air!
Usually, this time marks the peak of consumption but NOT this year.
Retailers are expecting a grimmer picture.
A study shows that Hong Kong shoppers are cutting their Christmas budget, with 64 percent saying they won't spend more than HK$1,000 on Christmas shopping and 52 percent saying they won't buy any Christmas gifts this year.
The survey, conducted by Hong Kong Research Association, found Hong Kong citizens are rather cautious about this year's Christmas consumption, as only 16 percent of 1,084 interviewees expect to spend more money than last year, while 23 percent said they would reduce spending.
"Even Hong Kong residents prefer to buy overseas, consumer products are much cheaper in Japan and South Korea.", Hong Hao, the chief strategist of Becom International said.
Luxury stores are feeling the crunch as shoppers minimize their spending.
"In this popular shopping district, you would usually see customers waiting in lines for purchases but not this year. Some shops have fewer customers, while others have closed their doors due to high rents. The traditional shopping season is also challenged by the declining tourist arrivals in last six months. "
The Travel Industry Council of Hong Kong says, the number of Chinese mainland tourist groups traveling to Hong Kong has dropped 20 percent so far this year.
"The sharp decrease is partly because the anti-parallel trading protests earlier this year, and the death of a mainland tourist in HK in October, and also some anti-mainland China sentiment."Jason Wong Chun Tat, the chairman of Travel Industry Council of HK said.
In October, a Chinese mainland tourist died after he was allegedly beaten unconscious by four men while trying to mediate a dispute between a fellow visitor and the tour group leader.
"That gives people the perception of HK doesn't welcome tourists.",Hao said.
"We are calling for the diversification of Hong Kong's tourism development." Wong said.
Wong said the travel industry council was trying to attract more overseas tourists by regulating market operations.
Despite their efforts, it appears a gloomy picture for the retail and travel business industry is expected to continue.
