Local businesses pushed out by luxury retailers catering to the mainland
Pushing their luxe: a stampede to set up high-end shops catering to mainland visitorsis driving out local businesses. Cash registers are ringing now but is Hong Kong setting itself up for a fall, asks Elaine Yau

When Yem Kwok-hung closed his mahjong set business on Lockhart Road earlier this year, it wasn't just the end of a three-decade family operation. It also marked the loss of a piece of Hong Kong culture - his shop was the only one in town that still carved its own acrylic tiles.
"I learned the skills from my dad, who is from Shanghai. We had rented the site since 1980. The monthly rent rose from HK$750 to HK$10,000. When our lease came up for renewal, the landlord asked for HK$40,000. He didn't even bother to negotiate because he knew there was no way we could afford it."
Yem tried to find other premises but eventually gave up. "The rents are expensive everywhere. If we went to an out-of-the-way location we would lose our customer base," he says. "So I decided to change my career."
Yem's story is a familiar one. Escalating property prices are par for the course in Hong Kong. But for many residents, worries about shops being driven out of business have become all too frequent since the solo travellers scheme was introduced in 2003 to facilitate visits by mainland tourists. The city has benefited economically. Hong Kong Tourism Board figures show last year's 28 million mainland arrivals spent almost HK$111 billion during their visits, and accounted for 28 per cent of revenue in the retail sector.
But the stampede to tap this lucrative market has roused increasing resentment among Hongkongers, as many homegrown businesses and services catering to local needs are being priced out of existence.
Several groups, mostly internet-based, have sprung to counter what they view as a threat to local culture. The Hong Kong Autonomy Movement, which lists 500 members, is among them. Set up in 2011, the group organises regular seminars on Hong Kong identity and history, city tours and classes on topics such as local cinema and developments in the Cantonese language.