In the third quarter of 2024, Hong Kong’s key business hubs witnessed a spike in street shop vacancies, reaching 11.7%, the highest level in more than three years, according to Hong Kong real estate agency Midland IC&I. The latest data revealed a total of 874 unoccupied shop spaces across the four primary commercial enclaves – Causeway Bay, Central, Tsim Sha Tsui, and Mong Kok – in the third quarter of this year, showcasing a notable uptick of 154 vacancies compared to the previous six-month period. Hong Kong’s retail sector faced a challenging environment in July as total retail sales witnessed an 11.8% year-on-year decline, due to slower recovery of inbound tourism and subdued tourist spending. Categories such as jewellery, watches and clocks, and valuable gifts and department stores bore the brunt of the downturn, experiencing significant drops of 25.0% and 24.3%, respectively. While inbound tourism stood at 3.9 million arrivals, around 71.8% of pre-pandemic figures from July 2018, the first half of 2024 saw a decline in per capita tourist spending, with shopping expenditures plummeting by 38.1% and dining receipts decreasing by 22.9% compared to the same period in 2023. Consumer spending trends in Hong Kong continue to demonstrate a shift towards mainland China, as restaurants, hotels and supermarket chains in Shenzhen and other mainland cities lure Hong Kong shoppers with lower prices.