Industry Representation

It is the Association's mission to represent the industry as a collective body and to work with the Hong Kong government and the private sector in creating a more efficient and prosperous business environment.

The Association has formally commented on the following industry issues:
  • Reduce the Use of Plastic Bag (October 2007)
  • Consultation on "Consultation Paper - Proposed amendments to the Trade Descriptions Ordinance to strengthen consumer protection" (September 2007)
  • Issues with Consumers' Rights and Mainland China Inbound Tour Affairs (November 2006)
  • Security Issues in Tsim Sha Tsui (June 2006 & 2007)
  • QTSA responses to the Policy Address 2005-2006 (October 2005)
  • Impacts of Raising Rent to Retail Industry (June 2005)
  • Area Improvement Plan for Tsim Sha Tsui – Proposed Planning Framework (December 2004)
  • National Day Holiday Questionnaire (September 2004)
  • Pedestrian Plan for Causeway Bay (July 2004)
  • Smoking Ban (May 2004 & April 2005)
  • May Day Holiday Week (May 2004 & April 2005)
  • Heritage Tourism Development at the Central Police Station Compound (March 2004)
  • Amendment on the Safety Standard for Toys & Children's Product (February 2003)
  • BBTS response to the Policy Address (January 2003)
  • Smoking (Public Health) Ordinance (December 2002)
  • Comments on the JCTI Position Paper (December 2002)
  • Electrical Products (Safety) Regulation (October 2002)
  • Licensing of Outside Seating Accommodation (June 2002)
  • Construction Work of KCRC East Rail Extension (May 2002)

Impact of Rising Rent

The incidence of Tai Cheong's demise aroused public concern towards the rising rent phenomenon. In view of that, the QTSA conducted a survey in mid June in which members were interviewed to investigate the magnitude of the rental increase and the impact of such rental fears to the retail industry. A total of 541 members were successfully interviewed, the response rate is 50.6%. From these, 75% came from retail sector and the other 25% were from the catering sector.

Of those interviewed, around 80% of the respondents were tenants - over 50% of whom were affected by the rent rise, with an increase of around 10% to 50%. However 30% of the affected tenants were suffering from a rent increase of 50% above, and some even saw rise of up to 300%. They mainly located in high traffic areas such as Causeway Bay, Central, Mongkok, Tsim Sha Tsui, Wan Chai etc.

When facing the hefty rents, around 45% of the affected tenants chose to relocate their shops to areas with lower rent and reduce the operation expenses other than staffing. The rest chose to react by taking action related to existing operations, for example, around 17% of them will increase price and another 15% will trim down the number of outlets. The remaining 13% will cut down staff costs and increase product varieties and service quality etc. in order to defuse this negative situation.

Of the tenants affected, 60% tried to negotiate with their landlords but they did not come to an agreement and the landlords refused to change their initial rate.


Closer Economic Partnership Arrangement (CEPA)

To promote the joint economic prosperity and development of the Mainland and the Hong Kong Special Administrative Region and to facilitate the further development of economic links between the two sides and other countries and regions, the Mainland/Hong Kong Closer Economic Partnership Arrangement was signed on 29 June 2003.

In a bid to provide a mechanism for further liberalization measures, the SARG and the Central People's Government have reached agreement on further liberalization measures on 27 August 2004 in the following:
  • Trade in Goods
  • Trade in Service
  • Mutual Recognition of Professional Qualifications

For detailed and latest information, please visit the Trade and Industry Department website.

Sales Tax

In 2003 September, the association conducted a survey to gauge the opinions of members and based on the findings a position paper was prepared and handed over to our Honorary Adviser, Mrs Selina Chow, who represented the Wholesale and Retail functional constituency until September 2004. The paper reflected our opposition to the sales tax. It was also an opportunity to underline our concerns.

From the day the Financial Secretary Mr Henry Tang, revealed in his maiden Budget that the Government would consider levying a sales tax to bridge the fiscal deficit, we have closely monitored all opinions on the issue. An overwhelming majority of members, or 95%, questioned in a survey objected to the tax and 93% of them also said the revenue-raising measure would adversely-affect their business. The survey received a response rate of 51 %.

To represent our members' concerns on this issue, we also mobilised other parties with a common interest in the issue to form an alliance -- Coalition Against Sales Tax. This coalition is a united opposition presenting a potent argument and a force to lobby the Government to shelve the sales tax.

This coalition reflected to the Government the concerns of the retailing industry, consumers and tourists while demonstrating the possible detrimental effects on the economy as a whole. United for a common cause, the alliance undertook campaigns to solicit support from other parties as well to ensure that Hong Kong remains a tax-free shopping paradise.

Outbreak of the Atypical Pneumonia (SARS)

After the outbreak of atypical pneumonia in March 2003, our chairman promptly sent a letter of encouragement to Dr. C. H. Leong, Chairman of the Hospital Authority Board, expressing sincere thanks to the devoted efforts that all the public hospitals and institutions have contributed in efforts to cure patients with pneumonia symptoms and in identifying causes of the infection. We also greatly appreciate the efforts of all medical practitioners who have continued to man their posts to ensure the smooth and efficient provision of medical and services to the people of Hong Kong.

The Association, however, has been concerned about the impact of the outbreak of atypical pneumonia on members' businesses. To avoid the spread of atypical pneumonia and rebuild the confidence of consumers and to encourage continued local spending, the following relevant health advice and guidelines issued by the Hong Kong government were circulated to all Members:

Health Advice on the Prevention of Respiratory Tract Infections
  • to All Licensees of Food Premises
  • to All Licensees of Non-food Premises
  • in Public Places
Protecting Yourself against Respiratory Tract Infections

To co-operate with the Hong Kong government and the entire local community in fighting SARS, we urged Members to closely follow the advice of the government and to do whatever they could to protect themselves, staff and customers against the disease on all fronts.
 

 
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