_Hong Kong - New normal under establishment

Hong Kong’s visitor arrivals in January 2017 rose for the second consecutive month, attributable mainly to the number of Mainland travellers to Hong Kong, which recorded positive growth for two months in a row. Retail sales in January also saw continued improvement, with the magnitude of the drop narrowing to only 0.9% year on year.

The figures reconfirmed our expectation of the bottoming of the local retail market in the first quarter of this year. With retailers continuing to adjust their business focus, the retail market has evolved further towards a new normal, with the focus shifting further from luxury to widely-affordable products. This has resulted in the expansion of mass-market retailers, such as Gu, the second line of Uniqlo, which will make its debut in Hong Kong in the spring, opening one store in Tsim Sha Tsui and another in Causeway Bay. 

We remain optimistic about Hong Kong’s tourism market. Hong Kong, as a mature city for travellers, has advantages, including a unique culture, a comprehensive direct flight network and a safe environment. The retail market is set to rebound along with the tourism market in the coming months. 

Read the latest Hong Kong Monthly - March 2017