Retail Sales in Hong Kong Continue to Rise
Boosted by Tourism and Consumption
In February, Hong Kong reported a 15th consecutive month of retail sales growth, driven by the ongoing increase in tourism and consumer spending. Sales for the month reached HK$33.8 billion ($4.32 billion), marking a 1.9% rise from the previous year. This growth follows a 0.9% increase in January, a 7.8% surge in December, and a significant 15.9% jump in November.
Tourism Sector Recovery
The government spokesperson highlighted the positive impact of increasing handling capacity and the hosting of more large-scale events on inbound tourism. These factors are expected to further stimulate the retail sector. Additionally, government initiatives aimed at boosting consumer sentiment are anticipated to provide continued support to the industry.
Volume Growth and Economic Outlook
In terms of volume, retail sales saw a 0.5% increase in February, following a 1.2% decline in January. Despite challenges posed by the COVID-19 pandemic and economic headwinds, Hong Kong’s economy is forecasted to grow between 2.5% and 3.5% this year, building on the 3.2% expansion recorded in 2023.
Government Support and Visitor Arrivals
The government has outlined plans to introduce support measures exceeding HK$1 billion ($127 million) for the struggling tourism sector. Initiatives include organizing over 80 “mega events” in the first half of the year to attract visitors. Moreover, the expansion of the individual travel scheme to include residents from Xian and Qingdao is expected to drive more Chinese tourists to Hong Kong.
Visitor Statistics and Sector Performance
In February, visitor arrivals reached 4.0 million, a notable increase from January’s 3.83 million and the 1.46 million recorded in February 2023. Mainland Chinese visitors accounted for a significant portion of this influx, with numbers rising to 3.25 million in February.
Impact on Sales Categories
While sales of jewellery, watches, and valuable gifts experienced a decline of 3.6% in February, clothing, footwear, and accessories saw a robust growth of 12.3% during the same period.
Overall, Hong Kong’s retail sector continues to show resilience and adaptability in the face of various challenges, pointing towards a positive trajectory for the industry.
