China spending on the retail market supports Hong Kong. Kevin Lai, economist at Daiwa, said, “The Hong Kong retail market would absolutely be devastated if Chinese consumers stop visiting. Half of the crowds in those shopping areas would disappear.”
Tourist arrivals from the mainland gained 49% in February from a year earlier, driving total visitor arrivals to a record 2.87 million for the month.
China imposes taxes of at least 30% on cosmetics, 20% on high-end watches and 10% on golf equipment. Those items aren’t taxed in Hong Kong.
Sales at department stores that month surged 49% from a year earlier, and sales of luxury goods such as jewelry and watches jumped 48%.
China imposes taxes of at least 30% on cosmetics, 20% on high-end watches and 10% on golf equipment. Those items aren’t taxed in Hong Kong.
Business Week reported Hong Kong is the biggest market for Swiss watchmakers, who exported $210.3 million worth of timepieces to the city in February, 17% percent more than a year earlier.