Agree with you Mark that tourist numbers skew the picture- but having said that, there is no doubt that the propensity of locals here to spend large amounts of cash on luxury goods is astronomical. There is one of the world's largest Louis Vuitton stores in Kowloon that last year (pre-crash) would have people queuing outside to get in- not for any special event, just a normal Saturday.

We live in small flats here- and many people don't have cars...so what else do you spend your post-tax (tax rate: 15%) income on? My secretary has three LV bags!

So , yes I agree that tourist numbers are a factor, but I think even if you adjusted for these you would still be blown away by the difference.