Business receipts post double-digit declines in Q1

Receipt values of tourism, convention, and exhibition services plunged 78.4% in Q1.

Hong Kong’s industries recorded double-digit declines in the value of business receipts in Q1, when the lockdowns and restrictions implemented due to the COVID-19 outbreak brought many economic activities into standstill.

Business receipt values of tourism, convention and exhibition services domain plunged by 78.4% YoY in Q1, provisional figures from the Census and Statistics Department (C&SD) revealed. This was the largest on record, as tourism was brought to a standstill in February and March amidst the COVID-19 pandemic, a government spokesperson noted.

Receipts from the computer and information technology services domain also decreased by 12.1% YoY during the same period.

Comparing Q1 with Q4 2019 on a seasonally adjusted basis, business receipts of the tourism, convention and exhibition services domain decreased by 57.1%, whilst those of the computer and information technology services domain also decreased by 7.8%.

Analysed by industry, business receipts of accommodation services shrunk 69% YoY compared to a year earlier; whilst retail and food service receipts fell 35% YoY and 31.2% YoY, respectively.

Other service industries also recorded double-digit declines. Transportation receipts were down 18.2% YoY, whilst real estate saw a 13.3% YoY decrease during the quarter. Other industries that registered declines include the administrative and support services (-13% YoY), import/export trade (-11.6% YoY), and information and communications industry (-10.6% YoY).

“The decline in business receipts of import/export trade widened amidst the serious disruptions to the regional supply chains and related trading activities. The fall in business receipts of the transportation industry enlarged notably amid sharply reduced passenger and cargo flows. Business receipts of many other service industries also declined visibly,” the government spokesperson said in a press release.

The insurance industry bucked the trend and recorded a 10.6% YoY increase in business receipts during the same period.

In a C&SD press release, a government spokesman pointed out that whilst the local epidemic situation has abated, the service industries will continue to face a difficult business environment in the near term amidst the lingering threat of the epidemic to global economic outlook and other challenges.

Comparing Q1 with Q4 2019 on a seasonally adjusted basis, business receipts of the tourism, convention and exhibition services domain decreased by 57.1%, whilst those of the computer and information technology services domain also dropped 7.8%.

Photo by Ansel Lee from Pexels