Tai O shop rents are soaring as new transport links boost tourism traffic into the island just off Lantau Island.
According to a story published by the Hong Kong Economic Journal, some retailers have faced rent increases as high as 600 per cent since tourists have been able to use the Ngong Ping 360 cable car to reach the remote fishing village, or the Lantau Link, instead of requiring a three hour ferry ride from Hong Kong.
But these links were opened in 2006 and the 1990s respectively, so their direct effect on current rental rates are tenuous. Rather it appears rental rates on the island are simply catching up with those in the rest of the territory…
And the rent rises retailers are complaining about have not occurred overnight.
Kung Wai-hing, chairman of the Tai O Chinese Chamber of Commerce, told the newspaper his rent had increased from HK$2000 in 2002 to $12,000 today – a period of 13 years.
Nevertheless, locals are concerned the distinct character of the village may be lost if rents rise too much further threatening the viability of current businesses. Locals prefer the more laid back lifestyle to their city centre cousins and don’t want to work around the clock in order to meet retail rents.