Retail sales crash 40pc over holiday period, says management group poll

Retail sales in Hong Kong fell by up to 40 per cent during the National Day holidays - the first drop since the city opened its doors to individual mainland travellers in 2003.

Retailers reported a decline in sales of between 30 per cent and 40 per cent in the first five days following the National Day holiday on October 1.

And flat growth in tourism and the Occupy Central protests in key shopping areas are to blame, according to a Hong Kong Retail Management Association poll released yesterday.

Association chairwoman Caroline Mak Sui-king said yesterday the poll results of 30 retail chains and smaller outlets was a warning that the city may miss its estimated 3 per cent growth this year.

"I can't blame it solely on the Occupy Central movement," Mak said. "The desire to shop among locals has been OK because there has not been much negative news to put people off. The retail challenges are fewer mainland tourists with lower purchasing power."

Mainland visitors account for about 40 per cent of Hong Kong's retail sales, which, in turn, support the city's economy.

Events around last week's National Day holiday were unprecedented - protesters occupying the key shopping locations of Mong Kok, Causeway Bay, Central and Tsim Sha Tsui as they demonstrated for democracy in huge numbers.