The Secretary for Commerce and Economic Development, Algernon Yau, said it's important for the city's retail, catering and hotel sectors to be adaptable and innovative - to attract a broader consumer base.

Speaking on an RTHK programme on Saturday, he said the total number of visitors to Hong Kong last year surpassed 44 million, marking a 30 percent annual increase.

He added that despite the SAR experiencing a 7.3 percent year-on-year decline in retail sales value last November, there was a positive shift during the Christmas and New Year period, with some businesses reporting double-digit growth.

"Apart from an increase in visitors from mainland China, there were also many more visitors from Southeast Asia under the new 'multiple-entry visa' scheme. I believe that, especially this year, this should greatly benefit the retail sector, particularly during holidays," he said.

"But given the overall global economic environment and changing consumer patterns, we need to adapt. The retail and catering sectors need to think about how to transform. Hong Kong has many eateries with long queues, indicating their popularity. We can look at why these eateries are so successful."

He also said online shopping is going to become the dominant trend in the global retail landscape, making it necessary for businesses to revamp their business models.

Yau said the Hong Kong Brands and Products Expo this year will be promoted on e-commerce platforms across mainland China and Southeast Asia.

He added that the SAR offers a plethora of sought-after brands and products, including food, cosmetics, and health items that hold significant popularity in mainland markets.

Asked if recent cases of Hong Kong residents being forced to work on illegal scams in several Southeast Asian countries would impact Hong Kong businesses' willingness to invest and operate in those areas, Yau said the two issues should not be intertwined.

"Hong Kong has been doing business in Southeast Asia for a long time. There are many Hong Kong businesses in Thailand, Myanmar, Cambodia, Vietnam and Laos. When I went to Cambodia, there were also many Hong Kong people who are living happily there and setting up business there. Similarly, there are Hong Kong businesses in Laos," he said.

"I think these are two separate matters that should not be confused. The occurrence of such events should not affect people's willingness to do business."