Tourism Resurgence Buoys Hong Kong Luxury Sales

Hong Kong retail sales remained strong in April amid the continued influx of visitors to the municipality.

Revenue from jewelry, watches, clocks and valuable gifts jumped 75% year on year to HKD 5.27 billion ($672.1 million) for the month, according to data the government’s Census and Statistics Department released Thursday. Retail sales across all product categories climbed 15% to HKD 34.71 billion ($4.43 billion).

The growth was the result of improved consumer sentiment and the progressive rise in the number of visitors entering the municipality. It also reflected a favorable comparison with the same period a year earlier, when Hong Kong was locked down under strict Covid-19 restrictions and tourism was severely low. A large portion of Hong Kong’s luxury revenue is derived from visitors who come to the country to buy goods. The municipality reopened its border with China in January.

For the first four months of the year, sales of jewelry, watches, clocks and valuable gifts surged 84% year on year to HKD 19.77 billion ($2.52 billion). Total retail sales for the January-to-April period rose 22% to HKD 137.53 billion ($17.55 billion).

In April, 2.9 million visitors arrived in Hong Kong, compared to only 4,692 during the same month the previous year. The figure was also higher than the 2.5 million who came in March. Of those who traveled there in April, 2.3 million were from the mainland, versus 3,608 in 2022.

“The value of total retail sales rose visibly in April over a year earlier alongside the continued improvement in consumption sentiment and visitor arrivals,” a government spokesperson said. “Looking ahead, the revival of inbound tourism and local consumption demand should continue to help the retail sector performance. The disbursement of consumption vouchers will provide further support.”

Image: Causeway Bay in Hong Kong. (Shutterstock)