Hong Kong felt the brunt of downward pressure from a slowdown in luxury purchases by Chinese tourists, as the annual Golden Week holiday saw wallets closing rather than opening.
Bloomberg reported that China’s slowdown is showing on shoppers’ acquisitions as mainland vacationers hit the Hong Kong boutiques less determinedly than in 2011. Fewer sales could further slow the Hong Kong economy, already down 0.1% from the previous quarter as exports shrink.
Joseph Tung, executive director of the Travel Industry Council, said in the report that it looks as if sales will be down at least 10% over last year’s holiday—this in spite of the fact that more tourists are pouring into Hong Kong during the eight-day travel and shopping holiday.
Luxury brands that opened new shops in the city picked a bad time to expand, with retailers such as Britain’s Burberry Group and Hangdeli Holdings, a high-end watch seller, feeling the pinch.