Changes in consumption patterns of tourists lead to challenges for some local SMEs, Paul Chan says

Some local small and medium-sized enterprises (SMEs) are facing challenges due to changes in the spending patterns of inbound tourists and the increase in northbound spending by some Hong Kong people, Financial Secretary Paul Chan mentioned in his blog today (March 31), describing that the growth of the local economy has yet to be reinforced.

Chan pointed out that looking back at the first quarter of 2024, Hong Kong's economy as a whole has maintained steady growth, with the unemployment rate below 3%, inflation generally moderate, and visitor arrivals exceeding 11 million, which has provided certain support to the local retail, catering and transportation sectors in the macro context.

"However, the industry is also facing the impact of changes in the consumption pattern of inbound tourists and the increase in northbound spending by some Hong Kong people, which have weakened their confidence in the outlook," he added.

Chan noted that a number of measures have been proposed in the Budget to alleviate the pressure on SMEs in various directions and create more room for their business, including assisting them in capital flow, market development and digital transformation.

"The HKMA has also recently announced nine measures to ensure that banks can adopt a more accommodating attitude in assisting enterprises in coping with their liquidity needs, to help them sustain their operation and development in a complex and volatile business environment."

"To facilitate SMEs in obtaining loans on better terms, the HKMA will also set up a one-stop platform to provide information on the SME services provided by banks, so as to make it easier for SMEs to compare and select the products and services offered by banks."