Hong Kong’s December retail sales by value fell by 9.7% from a year earlier, reflecting the impact of residents’ increased outbound trips during the holidays, government data showed on Monday.

Sales fell to HK$32.8 billion ($4.21 billion), a tenth month of declines after a 7.3% drop in November.

“The near-term performance of the retail sector would continue to be affected by the change in consumption patterns of visitors and residents,” a government spokesman said, adding various measures by Beijing to boost the mainland economy and the Hong Kong government’s efforts to promote tourism would boost sentiment.

Sales fell despite a rise in tourist numbers, as shoppers spent less and fewer visitors from mainland China stayed over.

In volume terms, December retail sales fell 11.5% from a year earlier, compared with a revised 8.4% decline in November.

For the whole of 2024, total retail sales value decreased 7.3% compared to the same period in 2023, while the volume of total retail sales fell 9.0%, according to provisional estimates.

China eased visa restrictions for Shenzhen residents visiting Hong Kong effective Dec. 1.
December visitor arrivals stood at 4.26 million, up 8.3% from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared to 3.57 million in November, 4.09 million in October and 3.06 million in September.

The number of mainland Chinese visitors stood at 3.10 million in December, up 5.2% from a year ago. That compared to 2.56 million in November, 3.14 million in October and 2.29 million in September.

For the whole of 2024, total visitor arrivals stood at 44.5 million, up 30.9% from 2023.
Sales of jewellery, watches, clocks and valuable gifts fell 13.8% in December year-on-year after a 4.2% decline in November.

Sales of clothing, footwear and allied products dropped 10.2% in December after a 5.2% decline in November.