Hong Kong businesses shut shop as city struggles to revive post pandemic

HONG KONG, April 30 - When Jacky Yu, 48, opened his Japanese gift shop in Hong Kong more than a decade ago, the tourist and shopping district of Mong Kok was a bustling hub packed with stalls, street food and tourists. Hong Kong is struggling to recover since the COVID pandemic, which saw many expatiates leave after a three year shutdown, and tourist numbers dwindle to a fraction of pre-pandemic levels. On Tuesday, Hong Kong leader John Lee played down concerns about businesses closing. Hong Kong residents are also deserting local shops and increasingly travelling across the border to the southern Chinese city of Shenzhen for food and entertainment, where they say prices and service are better. "Hong Kong people are heading north to consume, which has become a clear trend. On weekends, many Hong Kong people go to Shenzhen for consumption," said Ting Lu, chief China economist at Nomura based in Hong Kong. "The reason is that in the past five years, prices in Shenzhen, Guangzhou, and even Changsha have hardly changed much. But in Hong Kong ... We have found that the price difference has widened, which has encouraged Hong Kong people to go north for consumption." After Hong Kong reopened its border post-pandemic with China last year, the Tourism Board recorded a 38.9% drop in mainland visitors in 2023, compared with 2019 before the pandemic.