Growth in Major Service Industries
Business receipts in value terms of several major service industries in Hong Kong witnessed significant increases during the first quarter of 2023 compared to the same period in 2022, according to provisional figures released by the Census and Statistics Department (C&SD).
Impressive Increases and Declines
Comparing the first quarter of 2023 with the first quarter of 2022, remarkable double-digit increases were recorded in business receipts for the accommodation services (+84.5%), food services (+81.7%), banking (+30.6%), retail (+24.1%), and administrative and support services (+21.9%) industries.
However, the transportation (-18.7%), import/export trade (-17.5%), and courier (-12.5%) industries experienced double-digit decreases during the same period.
Analysis by Service Domains
Analyzing the data by service domains, the tourism, convention, and exhibition services domain exhibited an astounding year-on-year increase of 400.6% during the same period.
On the other hand, the computer and information technology services domain saw a decline of 9.9% year-on-year.
Quarter-to-Quarter Performance
Continued Growth and Decreases
On a seasonally adjusted quarter-to-quarter basis, most major service industries recorded varying degrees of growth in business receipts during the first quarter of 2023 compared to the fourth quarter of 2022.
Notably, the accommodation services (+53.4%) and retail (+12.0%) industries experienced double-digit increases. Conversely, the courier industry faced a double-digit decrease of 10.6% during the same period.
Comparing First Quarter 2023 with Fourth Quarter 2022
When comparing the first quarter of 2023 with the fourth quarter of 2022 on a seasonally adjusted basis, the tourism, convention, and exhibition services domain witnessed an impressive increase of 150.3%, while the computer and information technology services domain also saw growth of 5.5%.
Commentary and Future Outlook
A spokesperson for the Hong Kong Government attributed the improvement in many service industries during the first quarter of 2023 to the strong recovery of inbound tourism and domestic demand.
However, the weak external environment continued to impact service industries associated with external trade. Looking ahead, the recovery of inbound tourism and domestic demand is expected to further support domestically-oriented service industries, with additional assistance from the disbursement of consumption vouchers and “Happy Hong Kong” events.
However, the externally-oriented service industries may face challenges due to slower growth in advanced economies.
Sources: THX News & Hong Kong Government.
