COVID-19: NEWS ROUND-UP HK counting on travel revival as retail fortunes hang in the balance


Hong Kong’s beleaguered retail sector will be hoping that Chinese shoppers from across the border will return in their droves sooner rather than later, a the coronavirus (Covid-19) continues to exacerbate pre-existing challenges. According to Reuters, on 20 July Hong


Kong announced that it would be extending strict social distancing measures, ordering masks in all indoor public areas including malls and markets, as it reported a daily record increase of novel coronavirus cases. In addition, last month, China imposed


a national security law that has stoked antagonism among a Hong Kong populace now used to sporadic bouts of anti-authority unrest and a growing pro- democracy movement. The new legislation criminalises


subversive activity and collusion against the government in a controversial move that opponents say undermines Hong Kong’s long-held democratic freedoms and the principle of ‘one country, two systems’ enacted under Britain’s handover to China in 1997. A well-informed Hong Kong retail source


suggested to TRBusiness this month that the legislation will have little direct impact on a retail industry already damaged by protests in the wake of Hong Kong Chief Executive Carrie Lam’s doomed extradition bill last year. Yet the ‘circuit breaker’ to the present


malaise in the special administrative region’s downtown retail market would be a restoration of cross-border Chinese shoppers clamouring to spend. “Frankly, I do not believe Hong Kong


retail will ever return to its historic heyday,” commented the source. “The main reason for that is the government of Mainland China is encouraging people to spend locally to support the economy. “Taxes on luxury goods have been


progressively falling, major brands are boosting their presence and marketing sophistication there, and locals are now starting to trust genuine retailers selling


US cruises made to wait after CDC extends No Sail Order


30 September. This will remain in place unless a


Secretary of Heath and Human Services’ declaration judging coronavirus (Covid-19) to be a public health emergency expires, or the CDC Director modifies or rescinds the order. CDC issued its No Sail Order on 14 March


and this was renewed on 9 April. This was due to expire on 24 July. Cumulative data from the organisation


Passenger cruises operating in waters subject to US jurisdiction won’t sail until at least October after an intervention from officials. The Centers for Disease Control and


Prevention (CDC) announced on 16 July the extension of a ‘No Sail Order’ for cruise ships carrying at least 250 guests through


AUGUST 2020


covering 1 March to 10 July reveals there were 2,973 Covid-19 or Covid-like illnesses on cruise ships, plus 34 deaths. During this period, 80% of ships were affected. As of 3 July, nine of the 49 ships under


the order have ‘ongoing or resolving outbreaks’, says CDC. U.S. Coast Guard data shows that as of 10 July, there were 67 ships with 14,702 crew onboard.


Lotte to begin latest round of surplus duty free stock sales


In July, Lotte Duty Free conducted its third sale of surplus duty free stock from 22- 31 July. The ‘Maumbang Station Luxury Goods


Sale’ gave shoppers access to 800 products (bags, shoes, watches, accessories, sunglasses and beauty devices) from 28 brands. Discounts of up to 70% were available on


department store prices. The previous two sales held in June and


early July were extremely successful, with around 70% of stock sold on the first day. Certain areas of Seoul’s downtown


duty free shops can sell surplus stock after approval from the Korea Customs Service.


TRBUSINESS 3


Image Source: Wikimedia Commons/Andrew Mercer.


the latest products at prices compatible with overseas. “There is no longer any need to travel


across the border to buy luxury goods because they are not available at home.”


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