Hong Kong’s retail sector continued its robust growth in June, buoyed by an influx of visitors and a notable enhancement in consumer confidence.
According to data released by the government’s Census and Statistics Department on Tuesday, revenues from jewelry, watches, clocks, and valuable gifts experienced a remarkable surge of 64% year on year, amounting to HKD 5.56 billion ($713 million) for the month. This substantial upswing was part of a broader trend as retail sales across all categories demonstrated a commendable 20% increase, reaching HKD 33.12 billion ($4.25 billion).
This remarkable growth was also influenced by a favorable juxtaposition with the corresponding period of the previous year, which was marked by stringent Covid-19 restrictions and lockdowns that led to a substantial decline in tourism. The thriving luxury sector, often reliant on visitors, especially from China, who converge in the municipality to indulge in high-end purchases, was severely hampered during this period. The subsequent reopening of Hong Kong’s border with the mainland in January has been pivotal in rejuvenating the tourism and retail landscape.
In the initial half of 2023, revenue stemming from jewelry, watches, clocks, and valuable gifts exhibited a remarkable year-on-year surge of 74%, amassing HKD 30.41 billion ($3.9 billion). The aggregate retail sales figure for Hong Kong during this six-month duration experienced a robust 21% rise, totaling HKD 205.08 billion ($26.31 billion).
A government spokesperson articulated, “The surge in total retail sales during June, as compared to the previous year, is largely attributed to the resurgence in inbound tourism and the prevailing optimism among consumers regarding spending. The prospects for retail sales remain promising, with an anticipated further uptick in visitor arrivals in the forthcoming months. Additionally, improved labor market conditions and the implementation of various governmental initiatives aimed at invigorating economic recovery, including the distribution of consumption vouchers, are poised to provide substantial impetus to local consumption demand.”
