Hong Kong retail sales to climb by 13% in 2023: report
It is projected to amount to HK$395b (approximately US$50.3b).
Hong Kong’s retail sales are projected to grow by 13% to approximately HK$395b, or about US$50.3b, in 2023, PwC reported.
This will likely be driven by the easing of quarantine restrictions in Mainland China allowing inbound travellers.
“Mainland China lifting quarantine requirements for inbound travellers will cause a rebound in 2023 retail sales. Tourism will begin a slow recovery with estimated 20 million visitors coming to Hong Kong, which is a third of the peak of 65 million in 2018,” Michael Cheng, PwC Asia Pacific, Mainland China and Hong Kong Consumer Market Leader, said.
“Retail sales will benefit from the Tourism Board’s recent HK$100m scheme to lure tourists with promotions and giveaways, including consumption vouchers that can be spent at more than 130 attractions, retailers and dining outlets.”
Cheng added that this will also be underpinned by Hong Kong’s plan to give away 500,000 air tickets to reboot tourism.
“But while the border re-opening will help, the retail sector in Hong Kong will still rely on local consumption in the first few months and it may be difficult to return to the levels seen before the pandemic.”
IN 2022, total retail sales in Hong Kong dipped by below 1% due to the fifth wave of COVID infections, stricter social distancing measures and weaker purchasing power.