Hong Kong’s retail sales by value fell by 7.3 percent in 2024 over the previous year as a strong local currency deterred tourists from shopping and dining in the city.

Retail sales in December alone plunged by as much as 9.7 percent, and for the 10th month on the trot.

Retail sales for the whole of 2024 was provisionally estimated at HK$376.8 billion, while online retail sales was estimated at HK$31.7 billion, down by 2.6 percent over 2023.

Sales of jewelry, watches and clocks, and valuable gifts decreased by 14.5 percent.

Sales of motor vehicles and parts, commodities in department stores and apparel decreased by 17.2 percent, 13.9 percent and 10.6 percent respectively.

In December, retail sales were estimated at HK$32.8 billion. Online sales accounted for 7.2 percent of the total at HK$2.4 billion, a decrease of 17.2 percent year-on-year.

The Hong Kong Retail Management Association’s chairwoman Annie Tse Yau On-yee said the full-year figures were still in line with expectations despite the significant decline.

She said that although multiple-entry Hong Kong visas for Shenzhen residents were restored, mainland tourists now prefer to explore the city rather than shop and dine.

Sales of motor vehicles and parts fell by more than 30 percent and sales of furniture and fixtures also fell by more than 20 percent.

The customers for these products are all locals, and almost no tourists would buy them, she added.
Wholesale and retail sector lawmaker Peter Shiu Ka-fai said this decline was within expectations due to the northbound wave, with Hong Kong residents striving to do one trip a week to cities in the Greater Bay Area.

LAINEY LIU

Retail sales fell for the 10th month on the trot. AFP

Frugal tourists fail to fill retail coffers