Higher duty-free limit in Hong Kong draws lukewarm response among mainland shoppers

A higher duty-free threshold in Hong Kong for mainland Chinese tourists drew a lukewarm response on Monday when it took effect, with an industry leader expressing pessimism on its effectiveness and warning of shops shutting down.

Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, the city’s biggest trade body representing retailers, said the measure would not provide much of a boost to the ailing industry.

“Business is declining rapidly, but the costs of rent and salaries are increasing significantly. Everyone will continue to suffer for quite a long period, and some retailers might not be able to withstand it,” she said.

“If they cannot balance their books, they will need to shut down, this is what we expect.”