HONG KONG: As Hong Kong shopkeepers rejoice at the significant growth in year-end sales over one year ago, mainland tourists are once again expected to spearhead the next high season - the New Year shopping spree, according to retailers in the city.

The trendy shopping mall APM, located in Kwan Tong, is ready to welcome "New Year shopping groups" from the mainland, through cooperation with travel agencies, which will bring in extra sales amounting to HK$10 million, the mall said.

Daniel Poon, assistant chief economist at the Hong Kong Trade Development Council, told China Daily that the consumption power of mainland shoppers is the main driver of the end-of-year retail spurt.

The mall recorded a 20 percent increase in traffic during the four days of the Christmas holiday, with sales hitting HK$37 million, a 15 percent gain over last year.

"The market is good. I have confidence that sales could have 10 to 20 percent growth (over last year)," said Vernon Ma, a spokesman for upmarket Times Square in Causeway Bay.

The mall has just experienced a 10 percent increase in traffic over last year during Christmas. On Christmas Eve, the traffic hit a peak, with over 200,000 people per day.

Harbour City, a popular shopping mall among mainland shoppers, and the two Sogo department stores in Tsim Sha Tsui and Causeway Bay, are all expecting a double-digit increase on Christmas sales over one year earlier.

"The sales in the coming New Year holiday are probably better than Christmas," said Wang Jianfeng, associate professor of the Department of Marketing of the City University. He expects more tourists will be attracted to Hong Kong since there is a three-day New Year holiday on the mainland.

"The shopping crowd will last till mid-January of next year," said Ma, adding the retail market has been doing well since August and September.

(HK Edition 12/31/2009 page6)