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Hong Kong Luxury Sales Spike in December

February 1, 2024  |  Leah Meirovich
Hong Kong Retail 1280 USED 020124

Hong Kong retail sales jumped in December amid the continued recovery of tourism and government initiatives to boost spending.

Revenue from jewelry, watches, clocks and valuable gifts surged 50% year on year to HKD 5.46 billion ($698.6 million) for the month, the municipality’s Census and Statistics Department reported Thursday. Sales across all retail categories rose 8% to HKD 36.33 billion ($4.65 billion).

The growth is primarily the result of the increase in tourism from China following the reopening of borders at the start of 2023. Hong Kong derives a large portion of its luxury revenue from visitors — primarily from China — who come to purchase goods. Sales also benefited from wage gains and increased job opportunities as well as from special government promotions.

In December, 3.9 million visitors arrived in Hong Kong, compared to 160,578 during the same month of 2022. Of those, 2.9 million were from the mainland, versus 67,244 the year before.

Hard-luxury sales soared 55% for the full year to HKD 60.14 billion ($7.69 billion) in 2023, while annual sales in all retail categories rose 16% to 406.65 billion ($52 billion).

“Looking ahead, visitor arrivals should increase further alongside the continued recovery of handling capacity,” a government spokesperson said. “Rising household income also bodes well for local consumptions. These factors, coupled with the government’s efforts to promote mega events and launch various activities…should provide support to retail businesses.”

Main image: The Causeway Bay shopping district in Hong Kong. (Shutterstock)

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Hong Kong Retail 1280 USED 020124 Hong Kong Luxury Sales Spike in December

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