Hong Kong retail sales slips 0.4 per cent for fourth month as tourism slows

Hong Kong retail sales slumped for the fourth straight month in June as dwindling numbers of tourist arrivals continued to affect sales of big-ticket items such as jewellery and watches, says a report.

Retail sale fell 0.4 per cent from a year earlier in value terms to HK$37 billion ($4.8 billion) in June. That followed a revised 0.1 per cent decline in May, 2.1 per cent drop in April and 2.9 per cent slide in March. In volume terms, sales rose 4.4 per cent in June, against revised growth of 4.7 per cent in May, adds a report. The retailers have been majorly affected by slowing mainland tourist arrivals and high operating costs in rent and labour. In June, sales of jewellery and watches fell 10.4 per cent by value, compared to a 14.9 per cent fall in May.

The report further adds that for the first six months, the value of retail sales fell 1.6 per cent from a year earlier, while volume was up 1.7 per cent. China's slowing economy and volatile stock markets have hit retail spending and tourism. The Hong Kong Retail Management Association said the majority of its members forecast that the declining trend in retail sales will continue in the third quarter with no particularly favourable factors in sight.

Visitor numbers to Hong Kong fell 2.9 per cent in June on the year, compared with year-earlier growth of 6.9 per cent, Hong Kong Tourism Board data showed. Mainland tourist numbers in June slid 1.8 per cent, against 7.8 per cent growth a year earlier, says a report.