Hong Kong Luxury Sales Fall in December

RAPAPORT... Retail sales of jewelry and other luxury items dropped in HongKong in December, amid the continued impact of global economic uncertainties onconsumer demand. Revenue from jewelry, watches, clocks and other valuablegifts fell 4.9% year on year to HKD 8.27 billion ($1.05 billion), themunicipality's Census and Statistics Department reported Thursday. Sales in allretail categories were up 0.1% to HKD 44.91 billion ($5.72 billion), theslowest growth in over a year. "The value of retail sales in December 2018 slackenedfurther, to record little change from a year earlier, reflecting the cautiousconsumption sentiment," a government spokesperson said. "Retail sales performance [will] continue to be affected bythe cautious consumption sentiment amid moderating global economic growth andthe uncertainty stemming from the [US-China] tensions in the near term. [However,] the full employment situation and sustained expansion in visitor arrivalsshould provide some support," the spokesperson added. Revenue from jewelry, watches, clocks and other valuablegifts increased 14% to HKD 85.36 billion ($10.88 billion) in 2018, while totalretail sales grew 9% to HKD 485.2 billion ($61.84 billion) for the year. Thegrowth was due to robust sales in the first six months, the governmentspokesperson noted. In December, the total number of tourists to Hong Kongjumped 18% to 6.6 million, according to the Hong Kong Tourism Board. Of those,5.1 million visitors came from mainland China. In 2018, tourism to Hong Kongclimbed 11% to 65.1 million visitors, with 51 million of those arriving fromthe mainland. Image: The Tsim Sha Tsui shopping hub in Hong Kong. (Shutterstock)