Golden Week turns dull

Sales of luxury items during Golden Week will likely fall 10% from last year.

This is as mainlanders stubbornly refused to spend amidst a worsening economic slowdown.

Ironically, the disappointing sales in what should have been a golden week of rising revenues occurred despite more mainlanders visiting Hong Kong during the eight days of Golden Week, said Joseph Tung, executive director of the Travel Industry Council.

''The global economic downturn has affected China's economy and subsequently taken a toll on the demand of goods,'' Tung said. ''The falling trend of luxury goods demand is visible.''

It is ''highly likely'' Golden Week sales could drop from 2011, said Caroline Mak, chairman of the Hong Kong Retail Management Association.

Analysts noted that weaker retail sales also add to the risk of a recession in Hong Kong, where the economy inched ahead by just 0.1% in the second quarter from the previous three months on declining exports.

Other analysts said the number of big-ticket transactions has shrunk since macro-economic situation remains dreadful.

Retail sales in Hong Kong, which attracts mainland tourists because of its lower taxes, have grown at the slowest pace this year since the global financial crisis.