Hong Kong retail sales fall 8.4pc, dragged down by decline in tourism
Poor performance led by jewellery, watches and other luxury items, which plunged 18.7pc
Hong Kong’s retail and tourist figures saw a surprising dip in May, reversing the recovery trend observed in the previous months, with a business body predicting retailers won’t see positive growth until 2018.
The decline in the month of the mini-golden week holiday came as a blow to hopes that the city’s battered retail sector – which heavily relies on tourism spending – could improve soon.
Government statistics showed May retail sales decreased 8.4 per cent on a yearly basis after the April decline narrowed to 7.5 per cent, from a 9.8 per cent dip in March, marking the 15th consecutive month of contraction.
“The retail sector will not bottom out in the near future,” Hong Kong Retail Management Association chairman Thomson Cheng Wai-hung said. The disappointed retail veteran admitted the poor May figure took him by surprise as industry was expecting further recovery on the strong sales growth recorded during the three-day national holiday from April 30 to May 2, which saw mainland visitors flock to the city.
This has prompted him to predict a double-digit decline in the first half of this year, which would be the worst in over a decade, as its members signalled sales in June were “even worse than May”.
Cheng said the adjustment period could last for another 18 months, with the first sales uptick coming around 2018.