Hong Kong’s July retail sales up by 16.5% due to tourism revival
Hong Kong’s July retail sales rose 16.5 per cent from a year earlier in the eighth consecutive month of growth helped by an increase in visitor arrivals and positive consumption sentiment, the city government said on Thursday, reports The Business of Fashion.
Sales increased to HKD 33 billion (USD 4.21 billion). That compared with a revised 19.5 per cent rise in June and 18.5 per cent growth in May.
“The revival in inbound tourism should continue to benefit the retail sector in the coming months,” a government spokesperson said. “Improved labour market conditions and the government’s various measures to support consumption should also help.”
In volume terms, retail sales increased 14 per cent year-on-year in July. That compared with a revised 17.4 per cent growth in June and 16.6 per cent growth in May.
However, the city’s economic growth slowed to 1.5 per cent in the second quarter from a year ago, and compared with 2.9 per cent growth in the first quarter. The government has revised its growth forecast for this year to 4.0 per cent to 5.0 per cent from a range of 3.5-5.5 per cent earlier.
Preliminary visitor arrivals for July were 3.59 million, bringing the total for the first seven months of 2023 to 16.47 million visitors, according to Hong Kong Tourism Board data, compared with 124,052 in the January-July period in 2022 and 48,048 in July last year.
Among the arrivals, the number of mainland Chinese visitors increased to 2.98 million in July from 2.16 million in June, the data showed. That compared with 40,091 mainland visitors in July last year.
In July, sales of jewellery, watches, clocks and valuable gifts, which before the pandemic were mostly to mainland tourists, surged 19.8 per cent from a year earlier as compared with a 64.4 per cent jump in June, data showed.
Sales of clothing, footwear and accessories in July grew 35.6 per cent on the year after a 33 per cent increase in June.
Online retail sales in July increased 1.4 per cent year-on-year in value terms, compared with a 2.6 per cent drop in June.