Voucher calls as visitors splash out

Consumption vouchers should be handed out for a third consecutive year to speed up economic revival, legislators urged yesterday even as major malls reported sales increased about 30 percent over the Lunar New Year holiday.

Immigration Department statistics showed more than 41,000 mainlanders visited on the first three days of the long weekend.

And while that meant businesses racked up the best lunar new year holiday sales in four years, Legislative Council members said many small and medium-sized enterprises are still struggling.

Some want vouchers of at least HK$3,000 to boost consumption, though authorities were also urged to expand the tax base.

But independent Legco member Doreen Kong Yuk-foon told authorities to think twice before distributing vouchers again, describing the measure as "passing money from the left pocket to the right."

Instead, she said, Hong Kong should target boosting consumption from foreign and mainland visitors.

Kong also said the administration should be helping the unprivileged, such as tenants of subdivided flats and people with disabilities.

Election Committee Legco member Chan Pui-leung suggested a one-off HK$5,000 consumption voucher, which would involve handouts of some HK$30 billion.

He said that was still affordable, though he said the tax system should be reformed in the long run.

Also backing another handout, Peter Shiu Ka-fai of the wholesale and retail sector suggested vouchers should be handed out in the first half.

"I think the local economy will be more buoyant when the number of tourists gradually increases in the second half," he added. "Local businesses will be self-sufficient by that time."

Shiu also said over a million mainland visitors have obtained exit-entry permits to Hong Kong, and the SAR had recorded more mainland visitors than in the past three years.

Mainland tourists toting large bags were in places including Tsim Sha Tsui yesterday.

Among them were the Fengs from Hainan, who planned to splurge 100,000 yuan (HK$115,450) in designer shops on Canton Road.

Tourist Lu from Shenzhen said he spent HK$40,000 buying a luxury bag for his wife, but he felt the area was not as busy as before.

Still, a Chinese restaurant in Mong Kok, was packed. Manager So Man-shing said it saw 20 percent more customers than in 2018.

He also expected there will be more group bookings from June.

And with the borders reopened and cross-border buses resumed, 15 Sun Hung Kai Properties malls saw a 30-percent increase in sales and welcomed 25 percent more customers over the five days.