Mainlanders spent less in Hong Kong during LNY

Retailers expect lower sales this year compared to 2012.

The number of mainlanders visiting Hong Kong during the start last Feb. 10 of the Lunar New Year was 33% higher than LNY 2012. Some 381,000 tourists visited Hong Kong from the mainland during the first three days of the week-long holiday, compared with about 287,000 in the same period last year.

Despite the increase, the general sentiment among retailers is that sales this year will mimic those in last year when China’s weaker economy put a brake on sales. Expected to be hit the heaviest will be luxury items such as jewelry and high-end watches.

Retailers, however, hope the increase experienced in late 2012 will carry over into the LNY. Hong Kong’s retail sales rose 9.8% in 2012, slower than the 24.8% increase a year earlier.

One analyst said that if Hong Kong retail sales in January and February show encouraging growth bolstered by mainland tourist spending, we can say we are on the right track of recovery.