Hong Kong 5,000 yuan duty-free limit for mainland Chinese visitors to rise but ‘far below’ hopes

There were hopes the limit could eventually be in line with Hainan Island’s current 100,000 yuan per year, with an increase to 30,000 yuan in the first phase.

The increase to 30,000 yuan would be parallel with what Hainan got in 2018. Hainan got its first rise in 2018 from 5,000 yuan in place since 2011.

But a source familiar with the matter said Hong Kong’s initial increase would be “far below” 30,000 yuan and even under 20,000 yuan.

Latest numbers from the Census and Statistics Department showed retail sales in April dropped 14.7 per cent year on year, following a 6.9 per cent decrease in March.

Last month, Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, renewed calls for the tax threshold to be increased, saying more visitors to the city might not help much if the duty-free amount remained the same.

She also expected overall sales to decline by a low double-digit percentage this year.