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Ng Kang-chung

Hong Kong’s retail sales posted a 19.6 per cent rise in June compared with the same month last year, fuelled by a rebound in tourism and strong consumer demand.
Provisional statistics released by the Census and Statistics Department on Tuesday showed retail sales in June hit HK$33.1 billion (US$4.2 billion), down on the HK$34.5 billion recorded in May.
Retail sales for the first half of 2023 jumped 20.7 per cent over the same period the year before.
The growth in June – following May’s revised surge of 18.5 per cent – marked the seventh consecutive month of improved retail sales.

Provisional figures released last month suggested an increase of 18.4 per in retail sales in May.
The government remained bullish and said the outlook for retail sales was favourable.
“While visitor arrivals should increase further in the coming months, improved labour market conditions and the government’s various measures to boost the momentum of the economic recovery, such as the disbursement of consumption vouchers, should render support to local consumption demand,” it said.
The sales value for jewellery, watches and clocks, and expensive gifts increased by 64.3 per cent.
Clothing also saw a 34.2 per cent increase and spending on food, alcohol and tobacco went up by 6.6 per cent. The market for medicines and cosmetics rose by 49.4 per cent.
Hong Kong retail sales jump 18.4 per cent in May, as tourists return, people spend
But the value of sales in supermarkets decreased by 3.5 per cent in June over a year earlier. Sales of fuel also registered a drop of 19.1 per cent.
The market for furniture and fixtures recorded a drop of 6.4 per cent.
Hong Kong Retail Management Association executive director Bond Law called the June figures “a moderate improvement” only.
“It is a year-on-year comparison. Hong Kong was still hit by Covid and there were no tourists in the first half of 2022,” Law said.
Law noted that much of the sales improvement was due to a boom in arrivals and consumption by locals remained weak.
“Increases in sales were mainly seen in tourist-related items, like jewellery, watches, and valuable gifts, and medicine and cosmetics,” Law said.
“But for products mainly for local consumers, like fresh or frozen fish, livestock, and poultry, there was a fall of almost 15 per cent [year on year]. For furniture and fixtures, the fall was 6.4 per cent.”
The association also noted that the value of retail sales in the first six months, at HK$205.1 billion, was almost 20 per cent smaller than the HK$247.76 billion recorded in the first half of pre-Covid 2018.
Hong Kong welcomed 2.75 million visitors in June, bringing the total for the first half of the year to 12.88 million, 37 per cent of the figure for pre-pandemic 2019.
Most – 78 per cent – visited the city from mainland China.
Law also called for more joint efforts between the government and tourism sector to cope with the shift in focus by mainland visitors from shopping to exploring Hong Kong culture.
He pointed to findings of a recent association survey that close to 55 per cent of about 3,700 shops interviewed reported tourists’ spending had fallen in July compared with the same month in 2018, ranging from single digits to up to 30 per cent per receipt.
Only about 20 per cent reported higher tourist spending in July compared with 2018.
Law also said the second round of government consumption vouchers last month only had a mild impact on boosting sales, with about 80 per cent of the shops reporting single- to mid-double-digit growth in the week after issuance compared with the week before.
Some 20 per cent of shops, however, reported that sales were more or less the same before and after the issuance of the HK$2,000 vouchers.
Hong Kong’s retail sales jump by record 40.9 per cent in March
The government handed out the second round of vouchers in mid-July. Eligible residents could each get HK$2,000 and would be able to use the e-vouchers at local retail, catering, and service outlets both online and in-store.
The first instalment of HK$3,000 was distributed in April.
This year’s voucher scheme, part of the measures to speed up recovery from the Covid-19 crisis, was expected to cost the government about HK$33 billion and boost GDP by 0.6 per cent.
Meanwhile, Timothy Chui Ting-pong, executive director of the Hong Kong Tourism Association, said he understood the sector had a role to play to boost retail.
“It is important for the tourism sector to come up with better products or services and more creative marketing. If tourists are more willing to stay longer in Hong Kong, it will certainly help boost retail and catering,” Chui said.
Financial Secretary Paul Chan Mo-po on Sunday said the economy was on track to improve and highlighted that consumer spending remained the main engine of growth.


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Hong Kong economy

Hong Kong retail sales show 19.6 per cent rise to HK$33.1 billion in June, boosted by tourism and consumer demand

Strong comsumer demand, as well as a rebound in tourist numbers, helped boost the economy in June. Photo: Jonathan Wong

Retail sales for the first half of 2023 have jumped 20.7 per cent over the same period the year before. Photo: Jonathan Wong

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News

Hong Kong

June figures mark increase in retail sales for seventh month in a row
Hong Kong recorded 2.75 million visitors in June, bringing total for first six months to 12.88 million


June figures mark increase in retail sales for seventh month in a row, buoyed by tourism and consumer demand.


Retailing

Consumers

Hong Kong retail sales show 19.6 per cent rise to HK$33.1 billion in June, boosted by tourism and consumer demand

June figures mark increase in retail sales for seventh month in a row Hong Kong recorded 2.75 million visitors in June, bringing total for first six months to 12.88 million

June figures mark increase in retail sales for seventh month in a row

Hong Kong recorded 2.75 million visitors in June, bringing total for first six months to 12.88 million