Lawmakers said businesses are cashing in thanks to an influx of tourists during the Golden Week holiday, and that arrangements to reduce the inconvenience caused to local residents are working.

According to the Immigration Department, nearly 768,000 people arrived in the city on the first two days of the holiday.

Liberal Party lawmaker Peter Shiu said shopping malls saw a 20 to 30 percent increase in foot traffic while jewellery and cosmetics sales in popular tourist areas saw similar growth.

"Compared with before the pandemic, it is estimated that retail performance has recovered by 60 to 70 percent [during the Golden Week holiday]," he told an RTHK programme.

The wholesale and retail representative also noted that some businesses were facing difficulties finding enough staff to handle demand.

He said some bosses were offering wages that were 50 percent higher than normal to hire part-time workers.

"Apart from boosting the businesses, everyone wants to help build a good image for Hong Kong," he said. "Although the labour cost is unreasonably high, it is essential to do so."

Meanwhile, lawmaker Kitson Yang, representing the Kowloon Central constituency, told RTHK that the issue of mainland tour groups causing inconvenience to residents of To Kwa Wan has improved in the past couple of days.

There had been complaints about crowded streets and tourists eating lunch while standing on the streets.

Yang said while it was expected that 80 to 100 tour groups would go to To Kwa Wan, the Travel Industry Authority has managed to divert about 30 of them to other areas.

"(There were) no queues on the street, so many residents say it's a good situation compared with past years," he said.

The Immigration Department said Monday will be the busiest travel day during Golden Week, with an estimated 422,000 people entering Hong Kong.