Hong Kong is currently experiencing a slump in foreign tourist-oriented retail sales. Shops selling jewellery, watches, infant formula or Chinese medicine experienced a 25-35% decline YoY in August.
This certainly reduces the city's GDP and employment. On the other hand, tourist-oriented businesses don't seem to benefit the city's residents (except by providing employment), and at the same time raise retail space rents to world-record levels, pushing out businesses that serve locals, such as restaurants, laundry shops and other local services.
If you take into account the GDP and employment, as well as rents, non-tourists oriented businesses, long-term prospects and quality of life, do economists generally consider there is a net benefit in decreasing foreign tourist-oriented businesses, or is there a net benefit in increasing the number of such businesses? Would the answer be different for Hong Kong considering the limited space available?