HK retailers bank on duty-free quota hike for mainland visitors

Cost-conscious tourists, residents drawn by lower mainland prices spell difficult times

An increase in the duty-free quota for Chinese tourists to Hong Kong may go some way to support the city’s retailers, but visitors from the mainland say prices are still unattractive.

From expanding the solo travel scheme for Chinese visitors to Hong Kong in May to bumping up the duty-free shopping quota, the Chinese and Hong Kong governments are striving to lure tourists from across the border.

This comes as Hong Kong residents increasingly flock to the mainland for shopping and entertainment, saying prices there are generally lower and the service is better, and the Asian financial hub struggles to recover after the Covid-19 pandemic.

Starting from July 1, the duty-free shopping quotas for Chinese tourists in Hong Kong were increased from 5,000 yuan (S$930) per trip to 15,000 yuan for those visiting via six land border control points.