Hong Kong’s Retail Sales Climb Up Due to Inbound Tourism

Hong Kong’s retail sector continues to flourish as retail sales in October 2023 experienced a remarkable 5.6% increase compared to from October 2022. This growth can be attributed to the ongoing recovery of inbound tourism, according to the data released by the Census and Statistics Department (C&SD).

The provisional estimate of the total value of retail sales in October reached an impressive HK$33.8 billion. Additionally, online sales accounted for 11.0% of the total retail sales value, amounting to an estimated HK$3.7 billion and showcasing an 8.4% growth from the previous year.

Analysing the retail outlets by category, the top performers in terms of sales growth compared to a year ago were jewellery, watches, and clocks, along with valuable gifts, which experienced a growth of 23.5%. Books, newspapers, stationery, and gifts also saw a growth of 1.8% alongside footwear, allied products, and other clothing accessories with a growth of 2.5%.

On the other hand, some categories experienced a decline in sales. Electrical goods and other consumer durable goods not elsewhere classified witnessed a decrease of 12.5% compared to the previous year. Commodities in supermarkets had a decline in sales of 5.8%, and motor vehicles and parts experienced a decrease of 4.8%.

Despite the growth in October, the provisional estimate of the value of total retail sales decreased by 3% in the three months leading up to October 2023, compared to the preceding three-month period. The volume of total retail sales also witnessed a decrease of 3.4% during the same period.

However, a government spokesperson expressed optimism for the retail sector, stating that the value of total retail sales continued to increase in October compared to the previous year, primarily due to the revival of inbound tourism. The spokesperson further emphasized that the anticipated recovery of visitor arrivals, as well as improvements in household income and various economic activities, such as ‘Night Vibes Hong Kong,’ are expected to provide ongoing support to the retail sector.

Hong Kong’s retail sales have displayed a consistent upward trend throughout the year, reflecting the city’s progressive recovery as it gradually reopens its borders to the world. In September, retail sales experienced a surge of 13% compared to the same month in the previous year, driven by the continuous revival of inbound tourism and private consumption.

In conclusion, Hong Kong’s retail sector is thriving, with October 2023 witnessing a substantial 5.6% increase in retail sales, primarily fuelled by the recovery of inbound tourism. The growth in various retail categories signals a promising outlook for the industry, while ongoing improvements in household income and the city’s vibrant economic activities are expected to further support the retail sector’s growth in the coming months.