Based on official figures released on Wednesday, Hong Kong's retail sales increased in February for the fifteenth consecutive month, driven by the city's ongoing expansion in both tourism and consumption.
According to the Hong Kong government, sales in February increased 1.9% over the same month last year to HK$33.8 billion ($4.32 billion). In contrast, there was a 0.9% increase in January, a 7.8% increase in December, and a 15.9% increase in November.
"As handling capacity continues to recover and more mega events are staged, inbound tourism is expected to revive further and benefit the retail sector," a spokesperson for the ministry stated.
The official continued, "The government's initiatives to boost consumption sentiment should also provide support."
Retail sales in February saw a 0.5% increase in volume. In contrast, January saw a 1.2% decrease in volume terms, the first since December 2022, when it fell by 0.6%. It increased by 12.4% in November 2023 and 4.8% in December 2023.
After growing 3.2% in 2023, Hong Kong's GDP is predicted to increase by 2.5% to 3.5% this year as the city fights escalating deficits and economic headwinds in an attempt to restore its economy in the wake of the COVID-19 epidemic.
To boost the struggling tourism sector, the government intends to implement support measures totaling more than HK$1 billion ($127 million), putting on more than 80 "mega-events" including drone and fireworks displays in the first half of the year.
The Chinese cities of Qingdao and Xian also joined a travel program that permits citizens to visit Hong Kong on their schedule as opposed to with tour groups. The program went into force on March 6 and now there are 51 Chinese cities whose citizens can apply for individual travel.
The Hong Kong Tourism Board said that 4.0 million tourists arrived in February. In January 2023, there were 3.83 million, while in February, there were 1.46 million.
From 2.98 million in January, 2.94 million in December, and 1.11 million in February 2023, the number of mainland Chinese visitors increased to 3.25 million in February.
According to research, sales of expensive presents, watches, jewelry, and clocks—which were primarily purchased by mainland tourists before the pandemic—dropped 3.6% in February compared to January, when sales had increased by 22.8%.
Following a 2.7% gain in January, sales of apparel, accessories, and footwear increased by 12.3% in February.