Hong Kong retail sales fell the third consecutive month in May, on the back on decreased spending by both locals and tourists, and the strength of the Hong Kong dollar.
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According to government date, Hong Kong retail sales in May plummeted 11.5 percent to HKD 30.5 billion, following a 14.7 percent drop in April and a 7 percent fall in March.
In volume terms, retail sales in May fell 12.9 percent year-on-year, compared to a 16.5 percent decline in April and an 8.7 percent drop in March.
By channel, the value of online retail sales in May increased by 21.9 percent, accounting for 8.7 percent of total sales during the month.
By category, the value of sales of motor vehicles and parts decreased 29.8 percent; jewellery, watches, clocks, and valuable gifts sales fell 21.4 percent; department store sales declined 21.1 percent, and apparel fell 18.8 percent. Optical shops and furniture and fixtures also experienced drops of 18.4 percent and 15.9 percent, respectively.
Furthermore, sales of Chinese drugs and herbs decreased by 15.1 percent; other clothing accessories fell 11.7 percent, and consumer goods dropped 8.9 percent. Food, alcoholic drinks, and tobacco declined 4.1 percent, and commodities in supermarkets dipped 3.4 percent.
Contrastingly, value of sales of medicines and cosmetics increased by 2.5 percent in May, followed by sales of electrical goods and other consumer durable goods, up 2.2 percent, and books, newspapers, stationery and gifts, up 6.9 percent.
“The value of total retail sales continued to decline notably in May from a year earlier, mainly affected by changes in the consumption patterns of visitors and residents, as well as the strength of the Hong Kong dollar,” a government spokesperson said.
“A relatively high base for comparison in the same period a year ago was also relevant.”
Hong Kong’s chief executive John Lee Ka-chiu announced earlier this year that the city is set to host an impressive lineup of over 100 mega events in the latter half of the year, bringing the total number of ‘mega events’ to over 210 events by the end of 2024 to capitalise on the events economy.
The events are expected to bring in an estimated 1.7 million visitors from around the world, an influx that the government expects will add up to HKD 4.3 billion to the economy.