Fact – this year Vacationers spent over HK$200 Billion! (US$25.70 Billion) in HK.
If you haven’t visited Hong Kong lately then you will maintain for any amaze.
Using the high cost of gold (US$1,450 per oz ) and around 22 million visitors annually from gold mad Landmass China, the roads are now being absorbed by Jewellery shops and Luxury Watch shops, visit the major tourist shopping areas, Central, Tsim Sha Tsui, Jordan, Yamatei, Mongkok and Causeway Bay and you’ll understand why, it is not only street shops, but every major shopping center too.
Just the number of Jewellery & Watch shops may i city have? how much money tangled up in inventory should be staggering, your average sized jewellery shop or watch shop most likely includes a shop window display averaging about US$12 Million and you will find countless these shops now.
Even Prince’s Building (alongside Statue Square and opposite the Mandarin Hotel) has already established about 10% of it’s retail space absorbed by Cartier, The truth is that I love to look around but Queens Road Central for instance is fast losing its attraction for that average shopper, actually the store proprietors aren’t complaining, the businesses always appear to become pretty busy. It’s a real pity as Queens Road Central happens to be an excellent place to buy locals and visitors alike however the landlords are making money, the only real retailers in a position to pay the to be honest stupid rents (a 150 sqft “shop” just of Queens Road Central inside a non prime location just rented for approximately US$13,000 monthly! to some store of Chinese Tea) would be the jewellery watching shops.
It is not only jewellery and watches, Luxury Brands for example Lv, Chanel, Coach, Gucci, Hermes etc are opening huge (and that i mean huge) flagship stores, in many countries a brandname will usually get one flagship store, in Hong Kong, there’s a flagship store in each and every major shopping area! and they’re a attractions themselves and what’s much more stunning is there are queues to go into, even at 11am each morning.
I hinted in the reason above and i’m but now starting to appreciate precisely how important Landmass Chinese Vacationers will be to the wellness of Hong Kong and we’re becoming more and more reliant (and possibly dangerously so) on the brethren in the North, customer figures have elevated dramatically since 2003 as well as in 2010 we’d 22.seven million visitors from Landmass China, they now represent around 62% of inbound visitors.
Their spending power is staggering and goes a lengthy method to explaining why the timepiece /jewellery / luxury brand shops take over our roads and malls it’s no question the HK Government functions rapidly to make sure there’s no bad publicity in relation to tourism.
High taxes in China are exactly why they flock here and why they consider HK to become a shoppers paradise, much traffic are here on an excursion, a fast tour on the coach after which hit the businesses and malls, apparently each customer spends typically HK$12,000 per trip (US$1,500) that is brilliant news for Hong Kong retailers and budget Hotels but the dpi to become conservative.
My “worry” may be the bubble could burst, Landmass Chinese readers are at the largesse from the Chinese Government who issue visas underneath the Individual Visit Plan (IVS) which began in 2003, it’s not unknown for that Chinese Government to revoke such schemes overnight – given the significance of Hong Kong I doubt this could ever happen but bad things can and do happen should you become excessively dependent on one “client” as they say… for now though situations are going rather nicely, specifically if you possess a shop selling famous label goods, jewellery, watches and cosmetics.