However, property consultants said such a transformation was aggressive and the landlord would find it challenging to entice shoppers to the complex.

Tim Jones, a senior portfolio manager of Swire Properties Management, said the concept was similar to that seen overseas.

'It shares overseas outlet malls' winning formula in offering international brand names outlets,' Mr Jones said.

'It is also hoped to be a leisure destination that can appeal to both local shoppers and overseas tourists.'

Swire Properties Management is the manager of the centre, which is owned by a consortium of Hang Lung Development, Henderson Land Development, New World Development, Sun Hung Kai Properties and Swire Properties.

Covering 462,800 square feet, the five-storey Citygate Outlets has secured 21 tenants including Adidas, Callaway and Pearly Gates, Theme, Esprit and Levi's.

With the provision of food and beverage facilities and spa services, the company hopes customers will stay longer and spend more.

The developer also hopes the area will become the gateway to other attractions on Lantau, such as Hong Kong Disneyland, Ngong Ping 360 and AsiaWorld-Expo.

Mr Jones said the initial response had been positive as tenants have registered an increase of 25 per cent in sales over the corresponding period in June last year.

About 75 per cent of the space has been leased since the transformation into an outlet complex began 12 months ago.

This compares with 60 per cent take-up before the conversion. However, Mr Jones said that figure was a distortion as some of the space had been left deliberately vacant for quality outlet clients.

Property consultants, however, still questioned if the concept would be popular in Hong Kong.

Jeannette Chan, the regional director of the retail department at Jones Lang LaSalle, said Hong Kong's well-developed infrastructure may affect the development of similar complexes in the city.

'It takes just 30 minutes to get to the airport, and some international brands may be concerned if by opening a discount store it affects their main stores' business and product prices.'

Ms Chan said over the years, feasibility studies on the outlet centre market had been requested by a number of clients but none had come to a decision on operating one.

Competition is another concern.

'There are many small-scaled venues in central areas regularly selling fashions and products at discount prices. Do buyers have to go to Tung Chung to shop?' Ms Chan said.

For example, office floors in Harbour City and Times Square are used by big brands to sell off-season goods, she said.

Joyce Boutique and Lane Crawford also have their own outlets in South Horizons.

'Hong Kong is one big shopping centre and shoppers won't find it hard to buy off-season products at a huge discount,' Ms Chan said.

However, Mr Jones said Hong Kong's outlet offers have been scattered, and organised efforts similar to those seen overseas had so far been lacking.

Citygate wants to fill the gap.

Simon Wong, an associate director of CBRE Research, also has reservations.

'It's popular overseas, but it may not be right for Hong Kong at this time.'

He said Hong Kong shoppers prefer to buy while window shopping rather than spend according to a shopping list.