HONG KONG: Hong Kong’s retail sales by value fell by 3.2 per cent in January from a year earlier, marking an 11th consecutive month of declines despite a surge in tourist numbers, government data showed on Monday (Feb 3).
Sales declined to HK$35.3 billion (US$4.5 billion), with the percentage change narrowing from a revised 9.6 per cent drop in December, reflecting the earlier arrival of the Chinese New Year this year.
Sales fell as shoppers spent less and fewer visitors from mainland China stayed over, while local residents spent more across the border taking advantage of the strength of the local currency.
The near-term performance of the retail sector would continue to be affected by the change in consumption patterns of visitors and residents, a government spokesperson said.
In volume terms, January retail sales fell 5.2 per cent from a year earlier. That compares with a revised 11.3 per cent decline in December and an 8.4 per cent drop in November.
China eased visa restrictions for Shenzhen residents visiting Hong Kong effective December 1, 2024.
January visitor arrivals stood at 4.74 million, up 24 per cent from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared with 4.26 million in December, 3.57 million in November and 4.09 million in October.
The number of mainland Chinese visitors stood at 3.73 million in January, up 24.8 per cent from a year ago. That compares to 3.10 million in December, 2.56 million in November and 3.14 million in October.
Sales of jewellery, watches, clocks and valuable gifts fell 17.9 per cent in January year-on-year after a 14.5 per cent drop in December.
Sales of clothing, footwear and allied products increased 2.2 per cent in January after a 11.1 per cent decline in December.
