March tourist arrivals up 38.6 yy vs Feb39;s 173.7 rise yy
March jewellery sales down 17.7 yy vs Feb39;s 3.6 decline
Govt changing consumption patterns may pose challenges

HONG KONG, May 3 Reuters Hong Kong39;s March retail sales fell 7 from a year earlier, partly due to a high base of comparison for visitor spending and the Easter holidays, government data showed on Friday.

Sales decreased to HK31.2 billion 3.99 billion, snapping 15 consecutive months of growth. That compared with a 1.9 rise in February.

The changing consumption patterns of visitors and residents may continue to pose challenges, a government spokesman said.

Hong Kong visitor arrivals are increasing following the pandemic lockdown, helping to drive 2.7 growth in the local economy in the first quarter. Although arrivals are increasing there are signs tourists are spending less.

The government39;s efforts to promote a mega event economy, a further revival in inbound tourism and rising household income should help to support the retail sector, the spokesman said.

In volume terms, retail sales decreased 8.6 yearonyear in March, compared with a 0.5 growth in February.

For the first quarter of 2024, total retail sales decreased by 1.3 compared with the same period in 2023, while the volume of total retail sales fell 3.1, according to provisional estimates.

March visitor arrivals stood at 3.4 million, up 38.6 from a year ago period, data from the Hong Kong Tourism Board showed. That compared with…