Hong Kong Jan retail sales rise 0.9pc as tourism perks up

Hong Kong’s retail sales rose for a 14th consecutive month in January as tourism continued to improve, official data showed on Friday. 

Sales increased 0.9 percent year-on-year to HK$36.5 billion (US$4.7 billion) in January, the Hong Kong government said. That compared with a 7.8 percent growth in December, 15.9 percent jump in November and a 5.8 percent rise in October. 

“Continued increase in visitor arrivals alongside further recovery of handling capacity and organization of mega events would bode well for retail businesses,” a government spokesman said, adding government initiatives to boost consumption should also provide support. 

In terms of volume, retail sales decreased 1.2 percent in January, compared with 4.8 percent increase in December, 12.4 percent growth in November, a 2.9 percent rise in October. It is the first decline in volume term since December 2022 when it slipped 0.6 percent. 

Hong Kong’s economy is expected to grow 2.5 to 3.5 percent this year after expanding 3.2 percent in 2023 as the city struggles to revive its economy post-Covid while facing mounting deficits and economic headwinds. 

The government will roll out more than HK$1 billion (US$127 million) in support measures for its beleaguered tourism industry and the city will stage more than 80 :mega events” in the first half of the year to lure more visitors, including a monthly fireworks and drone show at its panoramic Victoria Harbour. 

Visitor arrivals for January were 3.83 million, according to Hong Kong Tourism Board data. That compared to 3.93 million in December and 498,689 in January 2023. 

The number of mainland Chinese visitors increased to 2.98 million in January as compared to 2.94 million in December and 280,525 in January 2023. 

Sales of jewelry, watches, clocks and valuable gifts, which before the pandemic were mostly bought by mainland tourists, rose 25.2 percent year-on-year in January after a 49.5 percent jump in December, data showed. 

Sales of clothing, footwear and accessories grew 2.8 percent on the year in January after a 17.9 percent increase in December. 

(US$1 = HK$7.8278)

(Reuters)