Holiday, Tourism Boom Buoy Hong Kong Luxury Sales

Hong Kong’s retail sales rose in January as the municipality benefited from a resurgence in tourism and a change in the timing of the Lunar New Year.

Revenue from jewelry, watches, clocks and valuable gifts surged 25% year on year to HKD 5.54 billion ($707.9 million) for the month, the government’s Census and Statistics Department reported last week. Sales across all retail categories increased 0.9% to HKD 36.52 billion ($4.66 billion).

The growth is primarily due to the continued revival of tourism from China since the border reopened a year ago. The municipality derives much of is luxury revenue from tourists — in large part from China — who come to purchase goods. January 2023 was the first month the government lifted travel restrictions. In that month, only 498,689 visitors arrived in the municipality, with 280,525 coming from the mainland, relative to 3.8 million this year, 3 million of whom traveled from China.

The timing of the Lunar New Year also proved favorable. This year the holiday took place on February 10, compared to January 22, 2023, resulting in a greater proportion of purchases for the festivities taking place at the start of the year, versus in December a year ago.

“Looking ahead, [the] continued increase in visitor arrivals alongside further recovery of handling capacity and organization of mega events would bode well for retail business,” a government spokesperson said. “Rising household income and the government’s initiatives in boosting consumption sentiment should also provide support.”

RELATED READING

It’s Time to Refresh the Jewelry Retail Calendar

Main image: The stores on Nathan Road in Kowloon, Hong Kong. (Shutterstock)