Hong Kong’s retail sales saw a narrower decline in April compared with the previous several months, supported by the city’s efforts to boost tourism and steady growth in residents’ incomes.

The value of total sales in April sank 2.3 percent on a yearly basis to HK$28.9 billion ($3.68 billion), according to data that the Census and Statistics Department released on Monday. This drop is less than the sharper year-on-year declines of 13 percent in February and 3.5 percent in March.

Despite the easing pace of decline, April’s figures represent the 14th consecutive month of contraction, a trend that began in March 2024, when sales fell 7 percent from the previous year.

READ MORE: HK retail sales’ value falls 7.8% in first two months of year

A government spokesperson said that retail-sales performance showed signs of stabilization in recent months.

Looking ahead, the spokesperson said, the Hong Kong Special Administrative Region government’s promotion of tourism and mega events will stimulate consumption. Rising employment income and steady growth in the Chinese mainland economy are also expected to boost consumer sentiment.

However, “ongoing changes in consumption patterns and competition among businesses amid the uncertain macroeconomic environment will still pose challenges,” the spokesperson said.

Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said outbound travel and tariff-related uncertainties have weighed on local consumption in April.

Data from the Hong Kong Immigration Department showed that the city’s residents made nearly 2.5 million outbound trips during the Easter holiday break, from April 17-21, an increase of 180,000 from the same period last year.

Looking ahead to May’s figures, Tse said that local retail sales could benefit from the mainland’s Labor Day holiday from May 1-5, during which, Hong Kong welcomed 913,000 mainland visitor arrivals.

A survey conducted by the association covering about 3,000 retail outlets indicated that over 30 percent of respondents anticipated sales increases of up to 30 percent during the five-day holiday.

READ MORE: Hong Kong retail sales record biggest growth in 13 years

The survey also revealed that more local residents chose to stay in Hong Kong in May compared with April, which has boosted domestic consumption beyond expectations, Tse added.

Gary Wan Ka-wai, principal economist and strategist at Dah Sing Financial Group, said that in the short term, consumer sentiment will be lifted by large-scale events at the newly opened Kai Tak Sports Park and the ongoing recovery in the Hong Kong stock market.

However, factors like increasing cross-border spending by Hong Kong residents and the macroeconomic outlook are expected to dampen the city’s retail performance over the medium to long term, he said.

Contact the writer at irisli@chinadailyhk.com