Hong Kong retail sales have fallen for a ninth consecutive month with a 7.3 per cent drop logged in November compared with the same period the previous year, as the government pointed to changes in both visitors’ and residents’ consumption patterns.
A vacant store in Chai Wan, Hong Kong, on May 27, 2024. Photo: Kyle Lam/HKFP.
Year-on-year sales fell to HK$31.7 billion in November, according to provisional estimates released by the Census and Statistics Department on Thursday. Retail sales by volume dropped by 8.3 per cent in November compared with 2023.
Changes in spending patterns of visitors and residents, alongside the relatively strong Hong Kong dollar, “will continue to weigh on the performance of the retail sector,” the government statement read.
The visa, which took effect on December 1, allows for unlimited visits to Hong Kong for a year. The scheme was resumed after it was previously halted in 2015.
The drop in sales came despite a rise in tourist numbers, as Hong Kong logged 2.56 million visitors from mainland China in November 2024, amounting to a 5.3 per cent increase year-on-year.
Visitors in the Hong Kong West Kowloon Station on February 15, 2024. Photo: Kyle Lam/HKFP.
The sales value of motor vehicles and parts fell by the most, at a 34.4 per cent drop compared to November 2024.
That was followed by furniture and fixtures, which marked a 20.5 per cent drop. Sales of Chinese drugs and herbs fell 19.3 per cent, while consumer electronics saw a 18 per cent drop in sales value.
Compared with the same period in 2023, the value of total retail sales between January and November 2024 decreased by 7.1 per cent.
Chairperson of the Hong Kong Retail Management Association Annie Tse said the multiple-entry visa had boosted retail sales in December, with lower-priced items such as cosmetics, fast food and clothing driving sales the most.
However, the strong Hong Kong dollar may deter visitors from purchasing high-priced products, Tse told local media.
Box office woes
Separately, box office receipts for 2024 were down 6.2 per cent, from HK$1.43 billion in 2023 to HK$1.34 billion last year.
Dozens of people queued up outside cinema in Mong Kok. Photo: Lea Mok/HKFP.
The figures released Thursday by Hong Kong Box Office Limited marked a 13-year low for the city’s film industry, despite drama The Last Dance breaking box office records and becoming Hong Kong’s highest-grossing film.
Tenky Tin, spokesperson for the Federation of Hong Kong Filmmakers, lamented that films including The Last Dance and action martial arts action thriller Twilight of the Warriors: Walled In – despite their financial success – did not premiere during peak holiday periods.
The industry last year marked its weakest performance since 2011, when earnings totalled HK$1.39 million. However, 2024 also marked the first time Hong Kong’s industry outperformed Hollywood since 2004, according to the report.
Tin also pointed to the nine cinema closures last year, saying that had a negative impact on ticket sales. “This is a sign that the market isn’t doing well,” he told RTHK on Friday.
