An uptick in visitor arrivals contributed to Hong Kong’s retail sales registering their ninth consecutive month of growth in August, although the year-on-year increase of 13.7 percent was slightly lower than previous months, according to the city’s government.
Retail transactions reached HK$32.4 billion (US$4.14 billion) in August, following a revised 16.7 percent rise in July and a 19.5 percent increase in June.
A government spokesperson stated, “The retail sector is expected to continue benefiting from the ongoing recovery of inbound tourism in the short term.” Additionally, they noted, “Positive consumer sentiment, driven by improved labor market conditions and the Night Vibes Hong Kong Campaign, featuring a variety of activities and consumption offers, should also provide support.”
In terms of volume, retail sales in August saw an 11 percent year-on-year increase, down from the revised figures of 14.2 percent in July and 17.4 percent in June.
In a bid to stimulate consumer activity, Hong Kong initiated the Night Vibes Hong Kong campaign in early September, aimed at enhancing nighttime commerce. This multifaceted initiative encompasses entertainment, arts, culture, and consumption, featuring night markets, food vendors, film screenings, and live music performances.
Hong Kong’s economic growth in the second quarter slowed to 1.5 percent year-on-year, down from the 2.9 percent growth observed in the first quarter. Consequently, the government has adjusted its growth projection for the year to a range of 4 percent to 5 percent, compared to the previous forecast of 3.5 percent to 5.5 percent.
According to data from the Hong Kong Tourism Board, preliminary visitor arrivals for August reached 4.08 million, bringing the total for the first eight months of 2023 to 20.55 million visitors. This marks a significant contrast to the 183,662 visitors recorded during the same January-to-August period in 2022 when China was still grappling with Covid restrictions.
Of note, mainland Chinese visitor numbers in August rose to 3.43 million, up from 2.98 million in July, in stark contrast to the 48,295 mainland visitors in August of the previous year.
In the retail sector, August witnessed remarkable growth in the sales of jewelry, watches, clocks, and valuable gifts, with a remarkable 57.2 percent year-on-year increase, following a 20.9 percent rise in July.
Sales of clothing, footwear, and accessories also saw substantial growth in August, increasing by 37.1 percent compared to the same period last year, following a 35.6 percent surge in July.
(Source: Inside Retail | Donny Kwok | Twinnie Siu | Simon Cameron-Moore | Reuters)
