Tuesday, 27 May 2014

Sensitive Audience

Many mainland tourists come to Hong Kong to shop, but how many is enough?
In Hong Kong everyone likes to complain, but no one wants to do anything and bear the consequences.

This time it's the numbers of mainland tourists in Hong Kong that topped 40 million last year.

After hearing about the erupted tensions in the media, protests and numerous letters to the editor, Chief Executive Leung Chun-ying has floated a trial balloon of perhaps cutting the number of mainland visitors by 20 percent.

The effect was immediate, with shares of retailers and property developers taking a hit.

But this is just an idea, folks, as Leung reiterated. It is not actual policy yet! The fine print has yet to be worked out, if this cut is going to be realized.

Many are calling for the government to only allow permit holders to come into Hong Kong once a day, which would effectively cut the number of parallel day traders by an estimate of about 25 percent and the volume of products they buy, mostly in places like Sheung Shui.

A number of locals have protested about "locusts" in the city
These people are not bona fide tourists, as they don't stay overnight nor visit any attractions. For these day traders, it's all about fulfilling demand for "real products" -- across the border.

But groups like the Hong Kong Retail Management Association warned that cutting the number of visitors would affect the job security of the 267,000 sales work force; it instead encouraged the government to build more shopping malls to ease congestion in other shopping districts. This would take at least two to three years and with the labour shortage in the construction industry maybe four to five years?

Some retailers like Prince Jewellery & Watch completely depend on mainland business, with its chief executive Jimmy Tang citing 90 percent of its customers are from China. Is it really true that almost all of its customers are mainlanders? Where do locals buy jewellery now?

This knee-jerk reaction to Leung's proposal is ridiculous and shows how sensitive people are. They don't want so many mainlanders in Hong Kong, but if the number of mainland tourists is cut, they worry about their livelihoods.

So what does Hong Kong want? It can't have it both ways.

Leung is trying to show that he's listening to the people, and yet the stock market reacts negatively to his intentions.

Just shows Hong Kong is a tough crowd. Nothing pleases them and yet they sit there and complain about the situation.

No wonder Beijing thinks Hong Kong people are like little children...

3 comments:

  1. YOU ARE OVERSIMPLIFY THIS ISSUE.

    HONG KONG GENERAL PUBLIC wants LESS PRC LOCUSTS in Hong Kong. CY Leung proposes restrictions on LOCUSTS ENTRY to HONG KONG.

    INSTITUTIONAL INVESTORS from AROUND THE WORLD and HONG KONG project less sales, leading to less profits/earnings, hence lowers target price.

    RETAIL INVESTORS should have expected this AND know the violatile nature of stocks. That's the COST of LESS LOCUSTS and MORE LIVABLE CITY.

    REAL ESTATE and BUSINESS TYCOONS/BILLIONAIRES sees less business and less profits, of course they will complain.

    BUSINESS like Prince Jewellery and Watch and Jimmy Tang are morons and schmucks to rely 90 pct of business on locusts, probably due to overexpansion.

    Your statements of 'people' should be changed to 'business interest groups.' General public should be aware of the costs and over-reliance on locusts on Hong Kong's lopsided economy.

    If Beijing thinks HK 'people' are like children, then the world thinks Beijing is one big bully.

    ReplyDelete
    Replies
    1. Hi nulle

      So you think 20 percent less mainland tourists is enough or more than that?

      Delete
  2. would prefer 50 percent less mainland tourists...but will take any significant reduction like what CY Leung suggests "only limited HK multiple entry permits allowing entry only once per day" and limiting the number of HK entry permits in general.

    in essence, if the 20-25% can be achieve, that would be good.

    ReplyDelete