HONG KONG – The New People’s Party (NPP) on Friday suggested the Hong Kong Special Administrative Region government could reactivate community businesses by reducing rents and diversifying management strategies.

The party’s proposal came after over 50 percent of respondents to a recent NPP survey said malls and markets in their communities have been less popular since the COVID-19 pandemic.

The results of the survey, focusing on the development of the district economy, were released on Friday. They showed that around half of Hong Kong residents reported decreased foot traffic and increased vacancy rates of stores in shopping malls and markets in the districts where they live since the pandemic’s outbreak in early 2020.

While 77 percent of the respondents said the commodities provided in their home districts are adequate for their basic daily needs, 52 percent of respondents from Southern District complained about the lack of product variety in their local malls, and said they were  forced to shop in other districts.

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The survey interviewed 3,477 residents and 409 small businesses between May 21 and June 11 via street interviews and online questionnaires.

The result showed that Wan Chai District witnessed the most serious slump in foot traffic, as 72 percent of the respondents noticed the decreased flow of consumers, followed by 69 percent of interviewees in North District. Increase in shop vacancy has been an overall trend, with 74 percent of respondents from North District and 61 percent from Tai Po District agreeing about the growing vacancy rate.

To improve the operational conditions of district-level shopping malls and markets, the party proposed enhancing tenant mix to diversify product offering, promoting locally distinctive products, and setting up thematic markets.

Yung Hoi-yan, the NPP vice-chairwoman, said high rentals could put pressure on many small shop tenants, citing that 55 percent of interviewed tenants said that rentals had increased, while 59 percent of the respondents had noticed a decreased business turnover.

Yung said she believed that there is a strong correlation between rental prices and the vacancy rate and suggested that the government should strategically bring in diversified tenants to government-run malls and markets, such as non-governmental organizations and District Services and Community Care Teams to increase popularity.

Dominic Lee Tsz-king, a member of NPP who sits in the city’s legislature, suggested small merchants should consider offering differentiated, distinctive products to attract more customers, noting that current on-market offerings are quite homogeneous.

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Another lawmaker from the party, Adrian Pedro Ho King-hong, said the government should take the lead in reducing rents for public markets.

Party member Judy Chan Ka-pui, who is also a legislator, said she hoped that the government could improve shopping for residents in the Southern District through measures such as building more large shopping malls.

The party also suggested setting up thematic markets, saying the one in Tung Chung featuring the former Kowloon Walled City is a good attempt to attract tourists.

Contact the writer at atlasshao@chinadailyhk.com