Hong Kong retail sales up 18.4% in May as tourism revives

Hong Kong retail sales have surged by 18.4% year-on-year in May 2023 compared to a year ago, due to the revival of inbound tourism and positive consumption sentiment.

According to the official figures released by Census and Statistics Department (C&SD), the value of total retail sales in May 2023, provisionally estimated at $34.5 billion, increased by 18.4% compared with the same month in 2022.

For the first five months of 2023 taken together, it was provisionally estimated that the value of total retail sales increased by 21% compared with the same period in 2022. 

Online sales accounted for 6.3% of the total retail sales value in May. The value of online retail sales in that month, provisionally estimated at $2.2 billion, decreased by 3.7% compared with the same month in 2022. For the first five months of this year taken together, it was provisionally estimated that the value of online retail sales decreased by 6.6% compared with the same period in 2022.

Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing this and last May, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 51.8%.

This was followed by sales of other consumer goods not elsewhere classified (+16.1% in value); wearing apparel (+38.5%); commodities in department stores (+9.9%); food, alcoholic drinks and tobacco (+4.4%); medicines and cosmetics (+51.5%); motor vehicles and parts (+54.7%); footwear, allied products and other clothing accessories (+17.9%); Chinese drugs and herbs (+35.1%); books, newspapers, stationery and gifts (+17.9%); and optical shops (+16.4%).

On the other hand, the value of sales of commodities in supermarkets has dropped  by 0.2% in May this year over a year earlier.  This was followed by sales of electrical goods and other consumer durable goods not elsewhere classified (-5.6% in value); fuels (-13.7%); and furniture and fixtures (-8.6%).

Don't miss: HK retail sales see visible rise of 15% YOY in April

A government spokesman said that the value of total retail sales continued to increase visibly in May over a year earlier due to the revival of inbound tourism and positive consumption sentiment.

The spokesman added that retail sales should continue to improve in the coming months. "The number of incoming visitors should continue to increase as transportation and handling capacity expand further. Local consumption demand will continue to be supported by the improved labour market conditions, disbursement of the second instalment of consumption vouchers, and promotional efforts by the government and the industry," the spokesman said.

Related articles:

HK retail sales see visible rise of 15% YOY in April
Hong Kong's retail sales up 40.9% in March
HK retail sales jump 7% in January due to improved consumer sentiment
HK retail sales see significant drop in November 2022