HONG Kong’s retail sales rose in August as mainland Chinese tourists returned to the city, providing an encouraging lift for an economy that has been trying to revive its image as a shopping hub.

Retail sales by value rose 13.7 per cent from a year ago, the Census and Statistics Department said on Friday (Sep 29). That was less than the median estimate of a 15.8 per cent increase in a Bloomberg survey of economists, and compares to a weak base from 2022 when the city still had some pandemic curbs.

Sales by volume grew 11 per cent from a year prior.

A government spokesperson said that the value of total retail sales continued to register visible year-on-year growth in August, thanks to a further increase in visitor arrivals.

Mainland Chinese tourists over the summer contributed to the jump, although levels still trail pre-pandemic levels. Visitor arrivals rose to 4.08 million in August, up 14 per cent from the month before, according to the Hong Kong Tourism Board.

The government is hoping that a tourism recovery can fuel growth this year, though there have been challenges as the city struggles to regain its appeal as a retail paradise.

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

Tourism’s contribution to the economy fell to 0.1 per cent of gross domestic product at the height of the city’s Covid isolation, from about 3.6 per cent before the pandemic. To attract more visitors and boost consumption, the city earlier this month launched a campaign to stimulate its nightlife. The push features three evening bazaars along the city’s famous Victoria Harbour and special events in bars and attractions.

The retail data covers consumer spending on goods but not services such as catering, medical care and entertainment. Those services account for over 50 per cent of the total consumer spending. 

The city’s economic recovery has shown some signs of trouble as GDP rose at a weaker-than-expected pace in the second quarter and Financial Secretary Paul Chan flagged concerns about muted spending habits among residents. Slower global demand has weighed on Hong Kong’s exports, which in August posted their longest streak of monthly declines on record. BLOOMBERG