Hong Kong Luxury Sales Get Boost from Tourism Return
Hong Kong retail sales continued their upward trajectory in June amid a rise in the number of visitors to the municipality and an improvement in consumer sentiment.
Revenue from jewelry, watches, clocks and valuable gifts jumped 64% year on year to HKD 5.56 billion ($713 million) for the month, according to data the government’s Census and Statistics Department released Tuesday. Retail sales across all product categories climbed 20% to HKD 33.12 billion ($4.25 billion).
The growth also reflected a favorable comparison with the same period a year ago, when Hong Kong was still experiencing a lockdown and strict Covid-19 restrictions. Throughout that time, tourism was extremely low. A large percentage of Hong Kong’s luxury revenue comes from tourists, primarily from China, who travel to the municipality to purchase goods. Hong Kong reopened its border with the mainland in January.
For the first six months of 2023, proceeds from jewelry, watches, clocks and valuable gifts surged 74% year on year to HKD 30.41 billion ($3.9 billion). Total Hong Kong retail sales for the period advanced 21% to HKD 205.08 billion ($26.31 billion).
“The value of total retail sales continued to rise notably in June over a year earlier thanks to the recovery of inbound tourism and positive consumption sentiment,” a government spokesperson said. “The outlook for retail sales remained favorable. While visitor arrivals should increase further in the coming months, improved labor 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.”
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Main image: Mongkok Street shopping district in Hong Kong. (Shutterstock)