Hong Kong retail sector calls for duty-free shopping allowance to be raised as sales decline worse-than-expected 14.7% in April

Hong Kong’s retail industry has urged authorities to raise the duty-free shopping allowance for mainland Chinese tourists as soon as possible, after total sales in April were much worse than expected with a 14.7 per drop from a year ago, and twice the decline recorded the previous month.

Provisional figures released by the Census and Statistics Department on Friday showed sales in April reached an estimated HK$29.6 billion (US$3.8 billion). It was the second consecutive contraction following 15 months of continuous growth after the coronavirus pandemic.

A government spokesman said the decline was notable “partly because the Easter holiday rendered the effects of the changing consumption pattern of residents more visible”.

He added that a large number of residents travelled outside Hong Kong during Easter, which resulted in lower consumption not only while they were away, but also on days before and after their trips.

“Besides, the unstable weather in April this year, with higher-than-usual rainfall, also had some impact,” he said.