The Hong Kong Retail Management Association said on Tuesday the 1.8 percent growth in retail sales to an estimated total value of HK$29.7 billion chalked up in July fell within its expectations.

The growth marked the third consecutive month of gains after the 14-month losing streak ended in May.

Speaking on an RTHK radio show, association chairwoman Annie Yau Tse attributed the growth to an increase in the number of visitors.

"The government has been stepping up the promotion of mega events and working to restore visitor numbers," she said.

"This has had a positive impact on the retail industry. Now we are starting to see tourists coming to Hong Kong, and this has helped business in some areas.

"Although the effect was not universal, some tourism-related categories, such as cosmetics, jewellery and personal care products, have benefited."

Tse also noted that the sector is confident of sales in September.

This is because there is no long public holiday during the month, she said, and the industry will carry out promotions to boost local spending.

Looking ahead, Tse expects the full-year retail figure, which has so far declined 2.6 percent in the first seven months compared to the same period in 2024, would remain flat, with a slight variation possible.