LettersHong Kong landlords and retailers must look beyond high rent – and innovate

Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@scmp.com or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification. I recently returned from a trip to Shenzhen, and as one of the hundreds of thousands of Hongkongers who ventured north on the weekend, I couldn’t help but ponder Hong Kong’s loss in retail revenue. While the government’s efforts to promote Hong Kong have been commendable, perhaps it is time to recognise that the solution may not lie solely within the government’s realm of influence. For years, Hong Kong’s retailers and landlords reaped the benefits of inbound tourism following the start of the individual visit scheme in 2003 allowing mainlanders to visit Hong Kong more easily. The demand for retail space soared, with Causeway Bay’s retail space becoming more expensive than New York’s Fifth Avenue in 2018, costing US$2,671 per sq ft annually. Landlords were spoiled for choice, selecting retailers based on their ability to pay exorbitant rents rather than focusing on providing a comfortable shopping experience. However, the dynamics of the retail sector have since shifted. Between 2018 and 2022, China’s e-commerce grew from 18.4 per cent to 27.2 per cent of total retail sales, while Chinese tourists expanded their shopping destinations to other Asian and European cities. These external factors have played out before our eyes, yet landlords and retailers remained fixated on the reopening of the border as the panacea for a post-pandemic recovery. In mainland China, landlords in the major cities have been known to charge minimal or no rent to get the tenants they want. In less prime locations, landlords may even offer subsidies for shop renovations. While some argue that this approach stems from a surplus of retail space, there is another theory at play. Chinese landlords recognise the threat of e-commerce and have sought to invigorate shopping malls to drive foot traffic. Consequently, an increasing number of landlords are prioritising unique visitor experiences over transactional shopping, allocating retail space for places like indoor safari zoos, swimming pools, pony-riding schools and go-kart tracks. By removing the burden of high rents, retailers can become more creative and focused on providing a memorable shopping experience. Could Hong Kong’s landlords and retailers adopt a similar approach? While the exact formula may not be replicable, they must rethink how revenue can be generated. Hong Kong has a wealth of talented real estate professionals and retail experts. Perhaps landlords can engage in discussions with investors, and consider the possibility of lowering profit expectations in the short term in exchange for an opportunity to redefine the retail industry for future sustainable growth. By fostering collaboration among stakeholders, exploring novel business models and leveraging the city’s unique strengths, maybe it is still possible to revitalise the industry and regain the interest of Hongkongers in staying in town instead of flocking across the border for personal consumption. Roy Ying, senior lecturer in marketing, Hang Seng University of Hong Kong Don’t sacrifice the Hong Kong Heritage Museum Today, the Legislative Council’s Panel on Home Affairs, Culture and Sports will discuss the establishment of two museums – one to showcase the country’s development and achievements, and the other focusing on the history of the War of Resistance – following the chief executive’s announcements of these plans in his policy address in October. To make way for the new museum on China’s achievements, the Secretary for Culture, Sports and Tourism Bureau has proposed that the Hong Kong Science Museum in Tsim Sha Tsui be relocated to the current site of the Hong Kong Heritage Museum in Sha Tin, while the heritage museum would close and its collections moved to other venues. I oppose any plans to shut the heritage museum. The museum houses the Jin Yong Gallery, a tribute to the works of Hong Kong martial arts novelist Louis Cha, the Cantonese Opera Heritage Hall, the T.T. Tsui Gallery of Chinese Art and the Chao Shao-an Gallery, among others. These exhibits showcase the richness of Cantonese culture and are invaluable cultural resources that highlight the uniqueness of Hong Kong. The bureau should strive to preserve Hong Kong’s culture to boost tourism. Any dilution of the Hong Kong brand would be a pity. S. Ching Choi, Peng Chau Revamp taxi operation, rather than crack down on Uber Taxi operators in Hong Kong are calling on the government to stamp out Uber and other ride-hailing services, and the government seemed to have had no option but to agree. This runs counter to the revolutionary changes brought by technology to our lives. Today, mobile apps allow business operators to provide tailored services to customers instantly. People no longer have to stand by the roadside waiting for a taxi to appear. They can book a ride where they are, to arrive at an agreed time. The fare is calculated scientifically, with no uncertainty about traffic congestion or the driver picking a longer route than necessary to increase the fare. With today’s technology, that is the kind of service that people want and deserve. I understand that taxi owners have invested large sums of money in taxi licences and the government owes them a duty. But the government cannot indefinitely continue to protect the old business model, and force people to use obsolete and sometimes dishonest services. Instead of trying to stamp out Uber, we should in fact phase out outdated taxi operations. Instead of wasting time prosecuting Uber drivers, the government should revamp the regulatory regime, arrange compensation for taxi licence holders if necessary, and find a way for the two to coexist. Joe Lee, Yuen Long

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}Readers discuss the urgent need to find a new business model to entice customers, the role of the Hong Kong Heritage Museum, and the government’s response to taxi drivers’ complaint

Readers discuss the urgent need to find a new business model to entice customers, the role of the Hong Kong Heritage Museum, and the government’s response to taxi drivers’ complaint