Hong Kong February retail sales rise 1.9% as tourism extends recovery

HONG Kong’s retail sales rose for the 15th straight month in February, boosted by continuing growth in tourism and consumption, official data showed on Wednesday (Apr 3).

Sales in February rose 1.9 per cent from a year earlier to HK$33.8 billion (S$5.8 billion), the Hong Kong government said. That compared with 0.9 per cent growth in January, 7.8 per cent rise in December and 15.9 per cent jump in November.

“As handling capacity continues to recover, and more mega events are staged, inbound tourism is expected to revive further and benefit the retail sector,” a government spokesperson said.

The government’s initiatives in boosting consumption sentiment should also provide support, the spokesperson added.

In terms of volume, retail sales increased 0.5 per cent in February. That compared with January’s 1.2 per cent fall, the first decline in volume terms since December 2022, when it slipped 0.6 per cent. It grew 4.8 per cent in December 2023 and was up 12.4 per cent in November.

Hong Kong’s economy is expected to grow 2.5 to 3.5 per cent this year after expanding 3.2 per cent in 2023, as the city struggles to revive its economy following the Covid-19 pandemic, while battling mounting deficits and economic headwinds.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The government plans to roll out support measures of more than HK$1 billion for the beleaguered tourism industry, staging more than 80 “mega events” such as fireworks and drone shows in the year’s first half to lure visitors.

The Chinese cities of Xian and Qingdao also joined a travel scheme allowing residents to make personal visits to Hong Kong rather than in tour groups. The scheme took effect from Mar 6, taking to 51 the total of Chinese cities whose residents are eligible to apply for individual travel.

February visitor arrivals stood at four million, data from the Hong Kong Tourism Board showed. That compared with 3.8 million in January and 1.5 million in February 2023.

The number of mainland Chinese visitors rose to 3.3 million in February from January’s three million, December’s 2.9 million and 1.1 million in February 2023.

Sales of jewellery, watches, clocks and valuable gifts, bought mostly by mainland tourists before the pandemic, fell 3.6 per cent in February on year after a 22.8 per cent growth in January, data showed.

Sales of clothing, footwear and accessories grew 12.3 per cent in February after an increase of 2.7 per cent in January. REUTERS