HONG KONG: It appears the newly implemented environmental levy on plastic shopping bags may be hurting some retailers participating in the scheme.

Some retailers say their business has tumbled since the scheme's inception over a month ago.

A survey conducted by the Hong Kong Retail Management Association among 2,765 shops revealed that 15 percent of retailers experienced what they characterized as a "dramatic drop" in business, while 41 percent reported a moderate drop.

Fifty-eight percent said fewer customers come through the door on Fridays and on weekends, and 36 percent reported business down from Monday to Thursday.

Chairman of the Hong Kong Retail Management Association Group Caroline Mak Siu-king said that compared to the same time last year, business for most retailers is down by less than 10 percent.

Mak said that customers tend to buy less when they have to pay 50 cents for a plastic bag. She also said shoppers may choose to go to retailers who don't charge extra for shopping bags.

But she maintains the scheme has been a success. The number of plastic bags handed out by retailers has plunged 80 percent since the levy came into effect. By contrast, sales of environmental shopping bags have increased by as much as 1,100 percent.

On average, shops reported a 67 percent increase in customers bringing their own shopping bags.

Mak recommends that the second phase of the plastic bag levy be implemented as soon as possible to create an even playing field among all retailers.

"It is unfair legislation that only 4 percent of retailers are imposing the levy scheme. When presented with the option to get free bags from other retailers, of course shoppers will choose to go elsewhere," said Mak.

It has been noted that some shoppers have taken to using plastic garbage bags as shopping bags. The survey revealed garbage bag sales have gone up about 10 percent since the levy came into effect.

Deputy Director of Environmental Protection Albert Lam said in a radio interview Friday that he is aware some shoppers are using garbage bags to shop. Garbage bag usage has increased by 20-30 percent, he said.

But he said the scheme has been progressing smoothly since its inception. The government will continue promoting and educating the public, including distributing flyers.

Environmental groups, though welcoming the drop in the number of plastic bags handed out to customers, said it is important the public actively and fully participates in the scheme.

Gabrielle Ho Ka-po, project manager of Green Sense said, "This is a worrying trend. We always encourage shoppers to use reusable bags when purchasing items. Using garbage bags is not a smart choice as its material is quite flimsy, thus difficult to reuse."

(HK Edition 08/08/2009 page4)