Hong Kong's plan to limit the number of tourists from mainland China is expected to hurt retailers in the city, with experts estimating that the proposal could cut US$3.2 billion in retail sales.

A government panel, led by Hong Kong Chief Executive Leung Chun-ying, is currently discussing the proposal to impose a certain limit in the number of mainland Chinese tourists visiting the city due to pressure on public infrastructure and tensions between mainland Chinese tourists and local residents.

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But even as the plan has not reached a certain level yet, retailers in Hong Kong have already expressed their opposition, saying curbing tourists from the mainland will surely hurt their sales as most of the retailers depend on this segment of visitors.

Retailers such as Luk Fork Jewellery and Sasa International, which sells cosmetics and fragrances, said fewer visitors from mainland China will put a huge dent in profits and could add to the woes of an already sluggish market.

One sole proprietor, who sells luggage in Mong Kok, said the plan, if approved and passed, could hurt his business and will force him to shut down. He said he solely depends on mainland Chinese tourists for his business.

"It will be killing me and other retailers softly because fewer visitors from mainland China would mean lesser sales and lesser profit," the vendor said.

Experts said that instead of putting a cap on the number of mainland Chinese tourists, the Hong Kong government should instead consider restricting visitors who make multiple visits.

Chung Kim-wah, a professor at the Hong Kong Polytechnic University, said the government should revamp the multiple-entry visa law that permits holders to enter Hong Kong several times without having to apply for a new permit for every entry.

So Kam-leung, Secretary of the Hong Kong Commerce and Economic Development Bureau said the government will work to ensure that the tourism industry's growth will be healthy and that new rules will benefit everyone.

So hinted that one of the options being considered by the city government is the construction of shopping malls near the border with China so that Chinese mainland tourist will not have to go around the city for their shopping.

TagsHong Kong Tourism, Hong Kong Travel, Hong Kong Travel Restrictions