Hong Kong retail sales rose 18.4 per cent year on year in May as the revival of inbound tourism picked up speed and local consumption sentiment turned more positive. 

Government data shows sales reached HK$34.5 billion (US$4.4 billion), marking a sixth consecutive month of growth and following April’s increase of 14.9 per cent. 

A government spokesman said retail sales should continue to improve in the coming months. 

“The number of incoming visitors should continue to increase as transportation and handling capacity expand further. Local consumption demand will continue to be supported by the improved labour market conditions, disbursement of the second instalment of consumption vouchers, and promotional efforts by the government and the industry,” he said.

Somewhat predictably, given the improved sales are being driven by inbound visitors, the biggest impact on the overall figures was a 51.8 per cent increase in sales of jewellery and watches. Apparel sales rose by 38.5 per cent, department-store sales by 9.9 per cent and cosmetics by 51.5 per cent. 

The main categories to show a decline were supermarket sales, down by 0.2 per cent, electrical goods by 5.6 per cent, and furniture and fixtures by 8.6 per cent. 

Of May’s total local retail sales, online transactions accounted for 6.3 per cent, down by 3.7 per cent year on year.