Hong Kong Luxury Sales Fall in December

RAPAPORT… Retail sales of jewelry and other luxury items dropped in Hong
Kong in December, amid the continued impact of global economic uncertainties on
consumer demand.



Revenue from jewelry, watches, clocks and other valuable
gifts fell 4.9% year on year to HKD 8.27 billion ($1.05 billion), the
municipality’s Census and Statistics Department reported Thursday. Sales in all
retail categories were up 0.1% to HKD 44.91 billion ($5.72 billion), the
slowest growth in over a year.


“The value of retail sales in December 2018 slackened
further, to record little change from a year earlier, reflecting the cautious
consumption sentiment,” a government spokesperson said.


“Retail sales performance [will] continue to be affected by
the cautious consumption sentiment amid moderating global economic growth and
the uncertainty stemming from the [US-China] tensions in the near term. [However,] the full employment situation and sustained expansion in visitor arrivals
should provide some support,” the spokesperson added.


Revenue from jewelry, watches, clocks and other valuable
gifts increased 14% to HKD 85.36 billion ($10.88 billion) in 2018, while total
retail sales grew 9% to HKD 485.2 billion ($61.84 billion) for the year. The
growth was due to robust sales in the first six months, the government
spokesperson noted.


In December, the total number of tourists to Hong Kong
jumped 18% to 6.6 million, according to the Hong Kong Tourism Board. Of those,
5.1 million visitors came from mainland China. In 2018, tourism to Hong Kong
climbed 11% to 65.1 million visitors, with 51 million of those arriving from
the mainland.


Image: The Tsim Sha Tsui shopping hub in Hong Kong. (Shutterstock)