New 2022 Hong Kong Covid News—The market has collapsed in a city that previously had some of the highest retail rentals in the world.
However, the local economy of one border town has taken advantage of the opportunity to grow.
In the past, Sheung Shui was a popular destination for people who wanted to buy tax-free products for resale in China, a practice known as parallel trade.
According to Eugene Chan, 22, a longtime resident of Sheung Shui, “people’s idea of Sheung Shui is parallel commerce and mainland China,” he added.
As Chan recounted the crowds of people cramming their suitcases with everything from cosmetics to baby formula to accommodate the soaring demand from over the border, he chuckled.
After massive demonstrations in support of democracy and subsequent border closures due to a pandemic, all of it was forgotten in recent Hong Kong Covid News.
Arrivals from the mainland reached an all-time high of 5.5 million in January 2019, right before the protests began. This is a stunning result given Hong Kong’s population of 7.5 million.
After two years, the number had dropped to less than 3,000.
Savills senior director of research and consultancy Simon Smith told AFP, “That’s a tremendous loss of demand.
This surge of mainland spending on luxury goods, like timepieces and jewelry, pushed up rents to world-beating heights.
The “golden streets” of Hong Kong’s most popular shopping districts once boasted store rents that were more expensive than Fifth Avenue in New York City.
“Substantial correction” has occurred, and retail rentals in top locations have now reverted to 2003 levels, down more than 75% from 2013’s high values.
Hong Kong Covid News: Omicron Surge
As officials tighten anti-virus measures and cancel long-anticipated plans for quarantine-free travel between Hong Kong and China due to an unexpected fifth Covid-19 wave, chances for a resurgence in Hong Kong’s tourism sector are dimming in recent Hong Kong Covid News.
To stem the spread of Omicron, Hong Kong announced on Friday (January 14) that passengers from more than 150 countries and territories will be prohibited from transiting the city for one month. The city’s strict Covid-19 policy enforces mandatory quarantine up to 21 days for incoming visitors from most countries. On January 7, the city’s officials imposed new restrictions for two weeks, including a prohibition on dining in restaurants after 18.00 and the closure of fifteen types of venues, including bars, theaters, and gyms.
According to Reuters, the administration is set to extend the restrictions through the Lunar New Year holiday at the beginning of February in recent Hong Kong Covid News .
Managing Director Michael Wu of Gray Line Tours believes that incoming traffic will begin again in October. Similar measures are being applied around the world, so we are not alone,” he said, adding that he hopes the country’s immunization rate would rise even further.
Even if a return in local tourism operations is possible before the Lunar New Year, the One Bus Holiday general manager and Hong Kong Tourism Association executive director Timothy Chui are pessimistic about it, given the growing outbreak scenario.
Until recently, the city has made considerable progress in exploring the reinstatement of quarantine-free travel with guests from China, subject to a limited quota, before the recent Omicron-fuelled wave.
According to the narrator, “it would have provided an incentive and laid the way for a long-term recovery of the sector.”
Over 90% of travel agencies in the city are SMEs, which have government money as a lifeline, but this is not the case for other players, such as hotels and transportation firms, which have been left out in the cold in this challenging period in recent Hong Kong Covid News.
To stay afloat, outbound tour operators are now focusing on domestic tourism, including government-subsidized tours and the sale of hotel staycations and cruise packages.
At this time, all tourism activities in Hong Kong have been halted except for staycations, according to ePlay. Hk’s general manager, Thomas Chan. Our road to recovery is going to be a long one if we don’t get back up and running soon.”
According to a statement by the Federation of Hong Kong Hotel Owners, hotels and restaurants will suffer significant losses during the Lunar New Year season due to the newest round of restrictions. According to the report, thousands of jobs might be lost if this trend continues.
Hong Kong Covid News: The Good Side
Rebalancing to local consumption has been spotted by analysts who have seen more budget-friendly enterprises move into prime location shopping areas in recent Hong Kong Covid News. One of Hong Kong’s most expensive retail locations, the Central district, saw luxury brand MCM’s shop replaced by sporting goods giant Decathlon, which paid HK$800,000 ($103,000) per month — a 70% savings, according to local media.
Rents have also dropped by similar percentages in Causeway Bay, a formerly exorbitantly priced shopping zone.
As a result, Dream Law’s food shop businesses have opened up in Sheung Shui, which caters more to residents.
In the Sheung Shui market area, 80 to 90 percent of establishments catered to parallel traders during the rise of (mainland tourists), Law told AFP.
He claimed that local businesses, such as hardware stores, book stores, and movie theaters, were priced out by the high rates.
“For years, it had felt like this neighborhood didn’t belong to us.”
There have been protests in border towns such as Sheung Shui since 2012, which has contributed significantly to rising tensions between China and Hong Kong over the past decade.
Law launched BeWater Mart, which specializes in “Hong Kong-made” products in response to the epidemic.
A new generation of small companies has sprung up in the area around his shop, including a cafe and a pottery studio.
Law hoped that people from Sheung Shui would return to live and shop in Hong Kong.
Hong Kong Covid News: Operating on Limited Capacity
Following China’s lead, Hong Kong talks with the mainland about resuming everyday travel. Hong Kongers want to cross the border for business, vacations, and reunions with loved ones.
Despite the Hong Kong government’s idea of a daily quota of about 1,000 visitors, Savills’ Smith claimed it would have no “substantial influence” on regaining pre-pandemic tourist spending levels.
Despite the imminent reopening of the border, Hong Kong’s retail business remains uncertain whether it will return to its mainland-dependent model or take a new course.
Hong Kong resident Chan worries about the reintroduction of parallel traders because she believes the border restriction is only a temporary measure.
However, she plans to focus on having fun and taking it all in for the time being.
For the first time in years, a friend of Chan’s expressed interest in visiting Sheung Shui to dine at a local restaurant.
“It doesn’t feel as crowded or frantic here, more like a tight-knit neighborhood. Everyone should be able to take a deep breath now.”