The New People's Party on Friday called for a reduction in rents for retailers operating from government premises, to help them cope with a citywide slump in sales.
The party said it recently sent questionnaires to more than 400 stores across the city, with shopkeepers reporting a drop in customer numbers and an increase in store vacancies, particularly in Northern District and Tai Po.
Fifty-five percent of the shops said their rent had gone up after the pandemic, while almost 60 percent said they had seen a fall in sales.
Recent official figures showed retail spending in May was down 11 percent year-on-year.
The party noted that many people are heading to Shenzhen at the weekend to make cheaper purchases, urging the government to help alleviate the pressure on local retailers with rent cuts.
It also suggested the government should come up with area-specific promotions to help all 18 districts in the city attract visitors.
"I don't believe that [Hong Kong] has lost the market competition. We can have different promotion techniques for the government to promote together with the districts other than doing the same thing in all 18 districts," said the party's vice-chairwoman Eunice Yung.
She added that rather than focusing on special days, tourism promotions should be expanded to ensure a constant stream of visitors.