Hong Kong retailers have received a surge in inquiries from mainland Chinese tourists about the prices of high-end US products amid an ongoing trade war, but shop staff have said few end up buying and business has dipped during the Easter holiday.
Retail sales have been slow as Hong Kongers leave the city in droves during the long weekend, with 1,329,556 departure trips by residents and only 234,090 visitor arrivals recorded on Thursday and Good Friday.
Departures by locals were 31.4% higher than the pre-pandemic figure in 2018 and up 8.4% against Easter last year. Arrival numbers were 20.4% lower than in 2018 and 15.2% higher than last year.
Most of the arrivals were mainlanders, with many who spoke to the South China Morning Post on Saturday sharing that they just wanted to unwind and window shop.
Some shops selling American products in the city noticed a surge in the number of mainlanders checking prices after Beijing raised the tariff on goods from the country to 125% in retaliation for Washington's 145% duty.
But Hong Kong has decided to maintain its free port status.
A staff member at an Apple store in Causeway Bay said on Saturday that almost every mainlander he came across had inquired about the changes in prices of their products.
"Due to the current political situation, they may be worried that the prices of Apple products may change in the future," he said, adding that some expressed interest in buying the products.
A mainland customer at the shop, who asked to remain anonymous, said she had concerns about the potential increase in prices but she would simply opt for Chinese brands in such a case.
Another mainland visitor, a 20-year-old surnamed Li, said he was interested in buying an iPhone in the city due to the difference in features but would switch to Chinese smartphones if prices rose.
Questions have been raised about Apple's manufacturing supply chain and China's smartphone industry amid the uncertainty under US President Donald Trump's new tariff regime, despite a temporary exemption on certain electronic devices.
Staff at American luxury brand Tory Burch in Causeway Bay also said they had received inquiries from mainland tourists asking if prices were affected, but most did not buy anything in the end.
The staff said the tariffs would have little effect on sales because the demand from mainlanders was already quite weak.
French beauty retailer Sephora's store in the popular shopping area offers make-up and skincare products from American brands such as Rare Beauty, Supergoop and Fenty Beauty.
One Sephora staff member said she had seen mainland visitors asking about the prices, but none made purchases.
Wang Siyi, a 26-year-old online content creator travelling from Guangzhou for a two-night trip in the city, said that any difference in prices for US products in Hong Kong and the mainland would not matter to her.
"There is nothing particular I want from the US … Many products are similarly priced now on the mainland and in Hong Kong. Considering the effort of travelling, sometimes I don't think it's worth it," she said.
A 25-year-old teacher from Guangzhou, surnamed Yuan, said the trade war was of no concern to her as she was not a frequent user of US products.
"I mostly use Japanese and Korean products, or Chinese products," she said.
Meanwhile, retail and catering businesses told the Post that there was a decline in customers in general on Friday and Saturday.
Kenneth Howe, the owner of Varga Lounge in SoHo, Central, said business on the first day of the Easter holiday was only 20% of a typical Friday, which was "the slowest" he had experienced so far for public holidays this year.
"I am probably the most popular bar in SoHo … I was still busier than the other bars. [The others] were really dead," he said.
"I've been doing this [for] exactly 20 years … it's normally slower during the public holidays [and] long weekends but I was surprised at how slow it was [last night]."
A pharmacy in Causeway Bay said business had dropped by around two-thirds compared with a regular weekend.
"The business is very poor," he said. "There are much fewer people on the street."
At around 5pm (4pm Thailand time), Harbour City in Tsim Sha Tsui was bustling with shoppers, yet many luxury brand storefronts were quiet, with only a few customers inside. Only two queues of about 10 people each were observed outside Louis Vuitton and Chanel.
Yedda, a 40-year-old media professional from Hangzhou, was one of the customers who decided to splash out.
She said she spent more than 50,000 yuan (227,000 baht) on Saturday in Harbour City. Her haul included two handbags, a wallet, earrings, and several belts for herself and her family.
Sam, in his forties and the manager of the Japanese restaurant Grill Manten Boshi HK in Ocean Terminal, reported that business had nearly halved compared with other public holidays.
"Most diners are tourists, and the business was similar to regular weekends. But compared with other holidays, it was really bad. I guess a lot of local residents opted for travel during this long weekend," he said.