LCQ19: Boosting local consumption
*********************************
Question:
Certain perspectives highlight that in view of the changes in people's lifestyle habits and consumption patterns after the epidemic, the Government should focus its efforts on reviving the economy and attracting consumer traffic again to stimulate local consumption. In this connection, will the Government inform this Council:
(1) whether it will consider, by following the Mainland's "Plan for Subsidies for the Purchase of New Products", launching a "Hong Kong Subsidy Plan", i.e. individual consumers will be given a one-off subsidy for purchasing electronic products such as mobile phones and tablets, as well as household electrical appliances such as televisions and air-conditioners, and drawing up specific conditions of use under the plan (e.g. confining the use of such subsidies to local physical stores); if so, of the details; if not, the reasons for that;
(2) whether it will consider supporting cinemas to offer movie ticket promotion for film shows on weekend evenings, so as to attract night-time consumption by young consumers, thereby driving the development of the relevant industries such as retail, catering and even transport services; if so, of the details; if not, the reasons for that; and
(3) of the specific measures in place to revive the local night economy, so as to attract members of the public to stay and spend in Hong Kong?
Reply:
President,
The Government has been working closely with various sectors of the community to strive for economic growth and development, actively seizing national and international opportunities to drive the economy forward. The gross domestic product has grown for 10 consecutive quarters, and its growth forecast for 2025 as a whole is maintained at two per cent to three per cent. The Government will continue to closely monitor the economic situation, and implement measures to duly assist the business community, and at the same time, encourages the retail sector to actively explore new avenues, bring forth new and innovative ideas to create new experiences for consumers, with a view to developing more business opportunities and growth areas.
The data of the Census and Statistics Department show that the value of total retail sales in May 2025 was $31.3 billion, representing an increase of 2.4 per cent as compared with the same period last year. This marks the end of a 14-month consecutive decline, showing that the retail sector is beginning to return to a growth trajectory alongside the recovery of the overall economy. The Government is actively promoting tourism and mega events. In the first half of this year, the number of visitor arrivals was about 24 million, representing a 12 per cent year-on-year increase. The number of visitor arrivals for the whole year is expected to reach 49 million, and together with the increase in employment earnings and sustained steady growth of the Mainland economy, it will help further bolster consumption sentiment and support the consumption market.
Having consulted the Financial Secretary's Private Office, the Culture, Sports and Tourism Bureau, the Financial Services and the Treasury Bureau and the Home and Youth Affairs Bureau, the reply to the three parts of the question is as follows:
(1) In assessing whether to implement one-off subsidy initiatives involving substantial public funds, the Government must adhere to the principle of prudent financial management and conduct a comprehensive evaluation. This includes considering the social and economic situation, the Government's fiscal situation, and the long-term sustainability of the policy measures to ensure the proper use of public resources and safeguard the overall interests of Hong Kong. At the same time, the Government will continue to take multi-pronged measures to stimulate the overall economy, with a focus on implementing long-term economic policies and other initiatives. These include transformation of the innovation and technology industry and promotion of the stable and healthy development of the assets market, etc., thereby strengthening economic growth momentum, enabling the sustained increase in incomes, and in turn boosting market consumption.
(2) Both the Cinema Day and the 1st October Movie Fiesta have received very positive feedbacks from the public and the film industry, as these initiatives of offering concessionary ticket prices provided additional incentive of watching films at cinemas and boosted consumption in surrounding shops. The Government will continue to fund projects and activities that build local audience, so as to cultivate the habit of cinema-going and support the steady development of Hong Kong films and cinema industries.
(3) The Government launched the "Night Vibes Hong Kong" campaign in mid-September 2023, where it joined hands with different sectors of the community to organise a wealth of attractive night-time events with local characteristics to showcase to the public and tourists the vibrancy and charm of nightlife in Hong Kong. The "Night Vibes Hong Kong" campaign was positively received by the community, with various activities of the campaign creating a dynamic vibe in Hong Kong.
Subsequently, a series of activities of the "Day x Night Vibes @ 18 Districts" was launched in January 2024 by the 18 District Offices of the Home Affairs Department, in collaboration with the Working Group on Boosting Local Economy set up by the District Councils, with an aim to provide the public with a wide range of cultural and leisure events to showcase local diversity or traditional cultural connotations in various districts, so as to create a buoyant mood in the community. The activities have been well-received by the public, and the feedback received from stall operators has been predominantly positive, indicating high patronage and the activities' effectiveness in promoting their businesses.
In addition, the Government and the Hong Kong Tourism Board, in collaboration with the convention and exhibition industry and relevant organisations, will continue to encourage the organisation of international meetings, travels, conventions and exhibitions events of different scales and types in Hong Kong, so as to help attract more high value-added overnight visitors to come to Hong Kong, thereby driving the retail market forward. For example, the Hong Kong Retail Management Association organises the third edition of the Hong Kong Shopping Festival from July to August this year to provide special offers such as shopping discounts and free gifts to the public and visitors through cross-sector co-operation, so as to attract more new clientele, with a view to injecting new momentum into the retail sector.
The Government will continue to actively plan and organise various large-scale events to attract visitors to Hong Kong, and at the same time, promote local consumption by the local public and visitors, so as to bolster consumption sentiment in the community, thereby driving the overall economy.
Ends/Wednesday, July 30, 2025
Issued at HKT 12:20
Issued at HKT 12:20
NNNN