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Jan tourist arrivals soar 70 times y/y vs Dec's 16 times
growth
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Jan jewellery, watch sales up 23.1% y/y vs Dec's 4.9% fall
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Government sees rebound of visitor numbers to support
retail
March 2 (Reuters) - Hong Kong's retail sales rose in
January for the second consecutive month as consumer sentiment
improved, with further relaxation of pandemic-related rules
expected to provide an additional boost, the government said on
Thursday.
January retail sales grew 7% from a year earlier in value
terms to stand at HK$36.2 billion ($4.61 billion). That compared
with HK$33.7 billion in December, when retail sales were revised
to an increase of 1.2% from a year earlier.
Strict COVID-19 restrictions have weighed on Hong Kong's
economy since early 2020, grinding tourism to a halt and
battering sales at bars, restaurants and shops.
The city dropped its COVID-19 mask mandate from March 1 in a
move to lure back visitors and restore normal life more than
three years after stringent rules were first imposed in the
financial hub.
The government also launched a promotional campaign earlier
this month called "Hello Hong Kong" to bring back tourists and
businesses.
"The continued return of economic activities to normalcy and
further rebound in the number of visitor arrivals will benefit
the retail sector," a government spokesperson said, adding that
improved labour market conditions will provide support.
In volume terms, retail sales in January increased 5.1% from
a year earlier. That compared with a revised 0.6% fall in
December.
The January retail sales value and volume were the highest
since April 2022 when it was up 11.7% and 8%, respectively.
Hong Kong has been battered by its own pandemic measures and
spillover from China's zero-COVID policies, but recovering
consumer spending on the mainland and a rebound in travel are
expected to help the city's economy this year.
The Asian financial hub's economy is expected to grow
3.5%-5.5% this year after shrinking 3.5% in 2022.
Tourist arrivals in Hong Kong in January soared nearly 70
times from a year earlier to 498,689. That compared with about
16 times growth in December to 160,578.
The city's seasonally adjusted unemployment rate eased to
3.4% in the November to January period, from 3.5% in the October
to December period.
In January, sales of jewellery, watches, clocks and valuable
gifts, which before the pandemic were mostly to tourists from
mainland China, jumped 23.1% from a year earlier, following a
4.9% decline in December, data showed.
Sales of clothing, footwear and accessories in January grew
14.7% on the year after a 0.9% increase in December.
Online retail sales in January decreased 4.2% year-on-year
in value terms, compared with a 12.8% growth in December.
($1 = 7.8496 Hong Kong dollars)
(Reporting by Donny Kwok and Twinnie Siu; Editing by Shounak
Dasgupta)
