Pay in Hong Kong’s retail, travel industries lags behind all other sectors as city recovers from Covid pandemic

Retail and travel industry representatives say authorities should draw up strategies to support retailers through mega-event economy and other initiatives

Wages squeeze might cause vicious circle with staff losses leading to worse service and damage to city’s upmarket image, sector leader warns

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Pedestrians walk past a boarded-up shop as retail and travel sector experts warn poor pay rises could hurt the industries. Photo: Yik Yeung-man

Published: 8:30am, 9 Apr 2024Updated: 12:21pm, 9 Apr 2024

Wage increases for retail and travel workers have fallen behind all other sectors as Hong Kong battles back from the pandemic, with an industry association warning the pay gap may affect service quality and derail the city’s bid to recover its status as a top tourist destination.

Industry representatives on Monday appealed to authorities to develop strategies to support retailers through its mega-event economy and help to stem a brain drain driven by sluggish pay rises.

Lam Chi-chung, the general secretary of the Hong Kong Department Store and Commercial Staff General Union, said retailers were less likely to offer attractive packages to keep skilled workers compared with other sectors.

He added the industry also tended to hire less-experienced staff and provide on-the-job training.

Lam said both factors could affect tourists’ perception of Hong Kong as a top-notch destination.

“Complaints about declining service quality have already surfaced,” Lam said.

“The persistent pay gaps are likely to drive more experienced workers towards other sectors, exacerbating the problem”