'Golden week' spending fuels Hong Kong's consumer market

HONG KONG -- The just-concluded "golden week" holiday has provided a strong boost to Hong Kong's tourism and retail sectors, with businesses reporting robust activities and upbeat performance, according to market observers.

During the eight-day National Day and Mid-Autumn Festival holiday, visitors from the Chinese mainland flocked to Hong Kong, enjoying shopping sprees and exploring the city's cultural sites and natural scenery.

The Immigration Department of the Hong Kong Special Administrative Region (HKSAR) government said arrivals from the Chinese mainland surpassed 1.4 million during the holiday, while the Travel Industry Council of Hong Kong reported more than 1,000 inbound tour groups in the first six days alone.

Hong Kong ranked as the fourth most-searched destination for mainland travelers, according to a manager from travel services provider Trip.com Group's hotel division in Hong Kong and Macao.

Shopping malls were among the most favored destinations. A high-end mall in Tsim Sha Tsui reported a 12-percent rise in foot traffic and a nearly 20-percent jump in spending by tourists compared to the same period last year during the holiday.

For some visitors, shopping has been the primary draw, as Hong Kong has maintained a competitive edge in terms of product styles and pricing.

"As the gold price is running high, promotional discounts and a favorable exchange rate here in Hong Kong have helped save about 2,000 yuan (about $281.3) on a basic gold item compared to buying it in the mainland," said a tourist surnamed Li from Beijing, who visited Hong Kong mainly for shopping.

The catering sector also performed strongly, with average daily revenue reaching about HK$300 million (about $38.6 million), up 10 percent year on year, according to the Hong Kong Federation of Restaurants and Related Trades Limited.

Shiu Ka-fai, a member of the Legislative Council of the HKSAR, said that the increase in long-haul visitors, coupled with various retail promotions, has helped spur consumer spending. Businesses have reported double-digit growth in revenue, beating industry expectations, he said.

From fireworks displays to fire dragon dances and lantern carnivals, the city has welcomed holiday makers with dazzling cultural and entertainment activities. Popular attractions, including the Peak Tram, Victoria Harbour, art museums and theme parks, have drawn large crowds, and ecotourism and nature walks have also gained traction.

In Sai Kung, waterfront restaurants were fully booked, and the information booth for boat trips saw steady streams of visitors. A local seafood restaurant owner, surnamed Choy, said that holiday revenue was quite impressive.

The boom in tourism and retail sectors followed efforts by the HKSAR government, as it stepped up cross-departmental coordination ahead of the holiday to provide visitors pleasant traveling experience.

Paul Chan, financial secretary of the HKSAR government, said the government will continue to promote the development of "mega event + tourism" and in-depth tours, improve infrastructure and services, as part of efforts to encourage visitors to extend their stays and make repeat visits.

The HKSAR government will work with the industry to fully maximize the economic benefits of mega events through enhanced synergy, he said.