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Visitor Slowdown Dents Hong Kong Luxury Market

Jun 3, 2019 10:44 AM   By Rapaport News
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RAPAPORT... Retail sales of jewelry and other luxury items fell in Hong Kong in April due to cautious consumer sentiment and a slowdown in tourism.

Revenue from jewelry, watches, clocks and other valuable gifts dropped 11% year on year to HKD 5.86 billion ($747.8 million), the municipality’s Census and Statistics Department reported last week. Sales in all retail categories slipped 4.5% to HKD 37.73 billion ($4.81 billion).

Tourists from mainland China tend to travel to Hong Kong to purchase luxury goods during holiday periods, a government spokesperson said. Last year, April sales were higher as the Labor Day holiday period was in late April and early May, whereas this year it was slightly later. Economic uncertainty caused by the US-China trade war also contributed to the drop, according to the government.

“In the near term, [consumer] sentiment will continue to be affected by various external uncertainties, though the sustained expansion in inbound tourism and largely stable local labor market should provide support to retail sales businesses,” the spokesperson added.

Retail sales of jewelry, watches, clocks and other valuable gifts decreased 4.7% to HKD 28.22 billion ($3.6 billion) in the first four months of the year. Sales in all retail categories for the January-to-April period fell 2% to HKD 166.14 billion ($21.2 billion).

In April, the number of tourists visiting Hong Kong rose 5% to 5.6 million, the Hong Kong Tourism Board reported. Of those, 4.3 million came from mainland China.

Image: Mong Kok shopping district, Hong Kong. (Pixabay)
Tags: Census and Statistics Department, Hong Kong Luxury, hong kong retail, Hong Kong Tourism Board, Rapaport News
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