Luxury shopping boom: Mainland tourists embrace HK's new duty-free allowance

The duty-free allowance for mainland travelers entering the mainland from Hong Kong has been increased to 15,000 yuan as part of a policy aimed at benefiting Hong Kong. This measure has been in effect for a month and was recently expanded to all ports.

Some mainland travelers reported spending nearly 50,000 yuan daily on luxury brand goods, stating that the increased duty-free allowance encourages bolder spending. One traveler specifically came to Hong Kong to purchase a camera worth around 10,000 yuan, expressing hope for further increases in the duty-free limit.

The Hong Kong Retail Management Association noted that some members had reported increased business due to the new measures.

The Federation of Hong Kong Industries stated that the increased duty-free allowance helps promote diversified tourism development and enhances the desire for travelers to visit Hong Kong. The government believes this new policy will stimulate retail activity and boost the local economy.

Since July 1, the duty-free allowance for mainland residents entering the mainland from Hong Kong has been raised from 5,000 yuan to 12,000 yuan. The policy also retains the option to purchase an additional 3,000 yuan worth of duty-free goods at designated shops upon entry. Initially implemented at six land ports, including Lo Wu and Futian, the expansion to all ports, including airports and ferry terminals, took effect yesterday.

Crowds Return to Tsim Sha Tsui Luxury Stores

At the West Kowloon High-Speed Rail Station, reporters observed many mainland travelers preparing to leave Hong Kong with fully loaded luggage and shopping bags. Miss Ye from Fujian shared that she plans to stay for four days, primarily to shop for a camera priced around 10,000 yuan due to the increased duty-free allowance. She noted that the 12,000 yuan limit is still insufficient and hopes it could be raised to several tens of thousands.

Tsim Sha Tsui's luxury brand stores were bustling, with many mainland tourists lining up to enter. Miss Yin from Shenzhen mentioned she purchased a silk scarf for about 4,000 yuan. This was her family's first visit to Hong Kong, drawn by the diverse styles and favorable prices of luxury goods. She estimated their total spending would reach around 50,000 yuan, stating that the previous 5,000 yuan duty-free limit often led to overspending, making the new 12,000 yuan allowance a significant improvement for shoppers.

Local retailers are facing challenges, as the Census and Statistics Department reported a preliminary estimate of 29.9 billion HKD in total retail sales value for June, a year-on-year decrease of 9.7%, marking four consecutive months of decline. However, the rate of decline has narrowed for two months.

Federation of Hong Kong Industries: Boosting Traveler Spending Intentions

The Retail Management Association Chairperson noted that members have reported business growth due to the increased duty-free allowance, enhancing travelers' spending power in Hong Kong. She believes that as the measures expand to all ports, a potential weakening of the Hong Kong dollar could attract more mainland tourists, positively impacting the industry. However, the actual effects remain to be seen.

The Hong Kong Trade Development Council's shopping festival starts today at the AsiaWorld-Expo. Vice Chairman of the Federation of Hong Kong Industries stated that the increased duty-free allowance will enhance the willingness of mainland travelers to visit Hong Kong. The AsiaWorld-Expo's proximity to the airport and the Hong Kong-Zhuhai-Macao Bridge facilitates easy access for mainland travelers, and he believes the new measures will promote tourism and boost local retail growth.

A government spokesperson mentioned that after seasonal adjustments, retail data for June showed a slight month-on-month increase of 2.3%, indicating signs of stabilization in retail activities. Although the retail sector will continue to face challenges in the short term, various supportive measures from the central government and the Hong Kong SAR government's efforts to promote major events and support local retail development are expected to help the industry. To promote the increased duty-free allowance, the government has placed promotional materials at various ports and sent messages through mainland mobile carriers to inform incoming travelers.

High Spending Among Overnight Exhibition Visitors: 700,000 in First Half of the Year

The tourism industry is recovering, with HK Tourism Board announcing that approximately 700,000 overnight exhibition visitors were recorded in the first half of this year, making it the fastest-recovering segment. These visitors stayed an average of 3.7 nights and spent over 8,000 HKD each, both figures surpassing the overall traveler averages. 

he board said they have successfully bid for and secured over 60 large international exhibition events scheduled in Hong Kong from this year through 2026, expecting to attract at least 180,000 exhibition visitors.

Promoting Exhibition Tourism to Attract International Guests

In the first six months of this year, Hong Kong welcomed about 21 million visitors, with overnight travelers accounting for around half. The Chief Director of the Tourism Board's Meetings and Exhibitions Division reported that the 700,000 overnight exhibition visitors have returned to about 80% of the levels seen in the same period of 2018. About 50% of these visitors are from international markets, a higher proportion than the overall traveler figure of about 25%. Their average spending exceeds 8,000 HKD, about 20-30% more than that of other travelers, and their average stay of 3.7 nights is longer than the overall average of 3.2 nights.

The Tourism Board emphasized that promoting exhibition tourism helps attract more international visitors. They have successfully bid for over 60 large international exhibitions covering themes such as innovative technology, medicine, finance, insurance, aviation, construction, and education. The board estimates that these events will attract at least 220,000 participants, with mainland and overseas visitors expected to account for at least 180,000, reinforcing Hong Kong's status as an "International Convention and Exhibition Capital."

The government previously announced that Hong Kong will host over 210 major events this year, expecting to attract around 1.7 million participants, generating 7.2 billion HKD in consumption and adding approximately 4.3 billion HKD in economic value.

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