Will Hong Kong firms bear the brunt of Labour Day ‘golden week’ exodus?

Hong Kong business leaders have set their expectations low for the Labour Day “golden week” holiday after the retail and catering sectors performed poorly over the Easter break.

Their worries also stemmed from Labour Day landing on a Thursday this year, which encouraged residents to secure a five-day break for travelling outside the city by taking Friday off to combine with Buddha’s Birthday on Monday, a public holiday also.

Ongoing US-China trade tensions have also seen the yuan depreciate as the Hong Kong dollar strengthens, potentially reducing the spending appetite of mainland Chinese visitors.

Chung Pok-man, vice-chairman of the Hong Kong Department Stores and Commercial Staff General Union, said on Thursday that the sector needed to adopt a more prudent outlook for the golden week break, while he hoped business performance would be maintained at the same level as the previous year.

“This year’s Easter business was relatively quiet because it’s not a mainland holiday, resulting in fewer tourists. Additionally, many Hong Kong residents chose to travel abroad during the break, negatively impacting the retail market,” Chung said.

He added that business for retail operators dropped by at least 5 per cent over the holiday compared with the previous year.