Tour groups to Hong Kong could shrink by as much as two-thirds in the first half of this year, an industry executive said, dealing another blow to retailers and an economy facing pressure from slowing growth in China. China accounts for almost three-quarters of all visitors to Hong Kong, which relies on tourism for about 5 per cent of its GDP.
Government data shows tourist arrivals to Hong Kong fell 2.5 percent year-on-year in 2015 to 59.32 million, the first decline since 2003 when the city was hit by an outbreak of Severe Acute Respiratory Syndrome (SARS).
This decline has hit luxury retailers including Chow Tai Fook Jewellery, Cartier owner Richemont and Burberry Group PLC, with the latest available data showing overall retail sales falling for the ninth consecutive month in November, the longest period of decline in 13 years.