Hong Kong’s luxury retail sector continued its recovery in January, with jewellery and watch sales recording strong year-on-year growth, supported by tourism and improving consumer sentiment.

According to provisional data released by Hong Kong’s Census and Statistics Department, sales of jewellery, watches, clocks and valuable gifts rose 31.1% year-on-year to HK$5.85 billion ($748 million) during the month. The increase marked the ninth consecutive month of growth for the luxury segment, reflecting a sustained rebound in high-value retail spending.

Overall retail sales in Hong Kong reached HK$37.3 billion ($4.77 billion) in January, representing a 5.5% increase compared with the same month a year earlier. In volume terms, retail sales rose 3.4%, indicating improved consumption levels despite ongoing economic uncertainties.

Industry observers attribute the growth partly to the continued recovery of inbound tourism. Hong Kong welcomed approximately 4.81 million visitors in January, a modest increase from the previous year, supporting spending in key luxury retail categories such as jewellery and watches.

Despite the positive momentum in hard-luxury categories, performance across other retail segments remained uneven. Sales of clothing, footwear and related products declined sharply during the month, highlighting the varied pace of recovery across the broader retail sector.

Market participants expect continued improvement in the luxury segment if visitor arrivals remain strong and regional economic conditions stabilise, as Hong Kong remains a key hub for high-value jewellery and watch purchases in Asia.