Hong Kong retail sales fell 7.8 per cent in November – a drop worse than expected that prompted retailers to draw parallels to 2003, when the city was hit by SARS. Thomson Cheng Wai-hung, the chairman of the Retail Management Association predicted full-year figure for 2015 to have fallen at least 3 per cent “for sure”. When SARS hit in 2003, the city’s full-year retail sales decreased 2.3 per cent. The first 11 months of last year dropped 3.1 per cent year on year. And retailers can see no light at the end of the tunnel. “We couldn’t see any positive signs that retail would turn around in 2016,” said Cheng. He said most members surveyed by the association expected single digit declines this year. Government also expects a gloomy year ahead. A spokesman said retail would remain weak due to the low numbers of inbound tourists. Most retail categories saw sales fall in November, with only three outlets recording growth. Jewellery, watches, clocks and valuable gifts ranked worst, with sales down 20.6 per cent. They were followed by department store goods and clothing, with sales declining 4.8 per cent and 8.6 per cent respectively. Supermarket sales did better, rising 1.4 per cent – a rise matched by Food, alcoholic drinks and tobacco. Motor vehicles and parts saw a rise of 7.8 per cent. Cheng said tourists from the mainland were “crucial” to the city’s retail sector, as they spent substantial portions of their travel budgets on shopping. While there has been a steady increase in visitor arrivals from overseas in recent months, Cheng said foreign tourists spent more of their budgets on leisure activities such as sightseeing and food, rather than shopping. “They wouldn’t help much on retail sales,” said Cheng. Retailers at Hong Kong Brands and Products Expo also received disappointing sale results yesterday, with total sales standing at HK$900 million, unchanged from last year’s figure. Sales at the popular Macau baker Koi Kei Bakery declined 20 to 30 per cent compared to last year, according to the man in charge of its booth, Arthur Lee. He said tourists from the mainland used to contribute one-third of the baker’s sales at the expo, but this year they had been responsible for less than 10 per cent. Meanwhile, the number of visitors to Hong Kong during the Christmas and New Year’s holidays shrank compared to last year. The Immigration Department said visitor arrivals from December 24-27 and December 31-January 3 dropped to 1.46 million, down 2.53 per cent from the same period last year. Tourists from the mainland were down 5.45 per cent and overseas visitors dropped 1.28 per cent.