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Total tourist arrivals were up 1.5 per cent year-on-year during "golden week". Photo: Sam Tsang

Tourist numbers edge up during ‘golden week’ but Hong Kong retailers fail to benefit as visitors spend less

After the worst figures in almost a decade, tourism chief admits the city relies too heavily on mainlanders and that new strategies are needed

Last week's "golden week" holiday brought no relief to the city's battered retail sector, with tourist numbers up only marginally on last year and spending per head down.

The "golden week" national holidays - at Lunar New Year and in the first week of October - typically mean an influx of mainland visitors, offering rich pickings for Hong Kong retailers, which have faced months of declining sales.

But Secretary for Commerce and Economic Development Greg So Kam-leung said arrivals climbed just 1.5 per cent year-on-year to 1.33 million in the week ending Wednesday. Some 75 per cent, or 1.1 million, were from the mainland, 2.3 per cent more than last year. The figures are the worst since a small decline in visitor numbers in 2006.

So said retail sales did not benefit because visitors spent less. He blamed economic uncertainty, weakening Asian currencies and a series of protests against mainlanders, which had dented tourist sentiment.

READ MORE: ‘Don’t put all our eggs in one basket’: Hong Kong hoteliers urge government not to rely on mainland Chinese tourists

Lau Hak-bun, sales director of jeweller Chow Sang Sang, said: "We made 15 per cent less money this year. Shoppers hesitated and tended to compare prices."

Travel Industry Council chairman Michael Wu Siu-ieng suggested the minor growth in inbound mainland tourists was mainly driven by those who visited on business visas and in group tours. Visitors from Shenzhen dropped nearly 20 per cent after holders of multiple-entry permits from the border city were limited to one visit a week.

Wu admitted the tourism industry had relied too heavily on mainlanders and the slow growth would have a ripple effect on related sectors.

Gloom for the sector deepened yesterday, when the Avenue of Stars attraction in Tsim Sha Tsui closed for a three-year renovation with its long-term future still up in the air.

New World Development, which manages the site, pressed ahead with the renovation despite delay to a deal with the government under which the developer would expand the attraction in return for an extension in the agreement under which it runs the area.

Visitors yesterday expressed their disappointment.

"I think it's pretty bad they've closed because people come here and like to walk around and see this famous area of Hong Kong because of the skyline and the harbour," said Sadie Lung, who was visiting from California with her mother.

First-time visitor Mohammad Sami from Abu Dhabi arrived with his selfie-stick. "I didn't know it was closed," he said. "I'm not happy."

Tourism sector lawmaker Yiu Si-wing slammed the government for resting on its laurels.

READ MORE: Taken for a ride: Swiss tourist charged HK$8,000 for taxi journey from Hong Kong airport to hotel in Kowloon

"They should have known years ago that the industry should not rely too much on mainlanders … Now it is too late," Yiu said.

Stressing that the city should not be limited to offering theme parks and being a "shopping paradise", he suggested the government could use Hong Kong's British colonial past and promote its historical significance.

"Visitors to Vietnam or even to Macau can experience a touch of France and Portugal. It works the same in Hong Kong," he said.

He also suggested walking tours of different districts and making more use of the city's natural attractions.

This article appeared in the South China Morning Post print edition as: 'Golden week' shopping gloom
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