Tourist Slowdown Dents Hong Kong Luxury Sales

RAPAPORT... Retail sales of jewelry and other luxury items fell in HongKong in April due to cautious consumer sentiment and a slowdown in tourism. Revenue from jewelry, watches, clocks and other valuablegifts dropped 11% year on year to HKD 5.86 billion ($747.8 million), themunicipality's Census and Statistics Department reported last week. Sales inall retail categories slipped 4.5% to HKD 37.73 billion ($4.81 billion). Tourists from mainland China tend to travel to Hong Kong topurchase luxury goods during holiday periods, a government spokesperson said. Lastyear, April sales were higher as the Labor Day holiday period was in late April and early May, whereas this year it was slightly later. Economicuncertainty caused by the US-China trade war also contributed to the drop,according to the government. "In the near term, [consumer] sentiment will continue to beaffected by various external uncertainties, though the sustained expansion ininbound tourism and largely stable local labor market should provide support toretail sales businesses," the spokesperson added. Retail sales of jewelry, watches, clocks and other valuablegifts decreased 4.7% to HKD 28.22 billion ($3.6 billion) in the first fourmonths of the year. Sales in all retail categories for the January-to-Aprilperiod fell 2% to HKD 166.14 billion ($21.2 billion). In April, the number of tourists visiting Hong Kong rose 5%to 5.6 million, the Hong Kong Tourism Board reported. Of those, 4.3 millioncame from mainland China. Image: Mong Kok shopping district, Hong Kong. (Pixabay)