Retail sales dropped 9.7 percent in December year-on-year, marking the 10th consecutive month of declines.

According to figures from the Census and Statistics Department released on Monday, the value of total retail sales in December was estimated at HK$32.8 billion.

The decrease followed a revised 7.3 percent fall in November.

Sales of motor vehicles and parts saw a sharp decline of 36.3 percent, while those of furniture and fixtures saw a 22 percent fall.

A government spokesman said retail sales declined further in December, partly due to more Hong Kong residents travelling abroad during the holidays.

Meanwhile, the provisional data showed retail sales for the whole of 2024 decreased by 7.3 percent when compared with the previous year.

"The near-term performance of the retail sector would continue to be affected by the change in consumption patterns of visitors and residents," a government spokesman said.

But it said the retail sector would benefit due to various measures introduced by the central government and proactive efforts by the SAR authorities to promote tourism, boost market sentiment and increase employment earnings.

Bond Law, the executive director of the Retail Management Association, said while the sector is expecting a continuous decline in business for January and February, there is some cause for optimism.

"There is hope for the increased business from mainland tourists, especially with the resumption of the multiple-entry individual visit scheme for Shenzhen residents," he said.

"Members are observing changes in tourist foot traffic, spending patterns and basket sizes. While foot traffic may increase, purchasing power remains weak and we need time to see the foot effects."