Hong Kong's retail sales in the first quarter of 1999 has shown notable improvement compared with the previous year's. According to the Census and Statistics Department of the HKSAR, the total retail sales volume recorded from January to April 1999, estimated at HK$58.2 billion, dropped by 10 percent as compared with the same period in 1998.

After discounting the effect of price increases over the period, the decrease in total retail sales volume was 4 percent. However, sales of jewelry, watches and clocks continued to show a significant drop of 13 percent in terms of sales amount.

Although Hong Kong's retail business has picked up in the first half of 1999, the watch and clock market is at a standstill since buyers have cut consumption of expensive items. Retailers therefore offer lower prices to stimulate market interest. They have broadened their sources of income and reduced expenses in order to ensure a balance in revenue and expenditure. Watch and clock retailers have also postponed expansion plans until further developments show greater improvements.

Hong Kong, known as the "Shopper's Paradise", has attracted quite a few tourists, particularly from Japan and Korea. According to the Hong Kong Tourists Association, the first half of 1999 recorded a substantial growth in the number of visitors to Hong Kong. Since tourists are major spenders, the growth of tourism has brought light to the retail market as well as the individual retailer.

In order to promote tourism to speed up economic recovery, the Immigration Department has increased the quota for China visitors, and has issued new and simplified visas for Taiwan visitors. Computerized customs procedures were also implemented.

Hong Kong will launch a series of celebrations and a number of huge projects, including the construction of Disneyland, the Cyberport and an international-standard entertainment center at the former Kai Tak airport.

Optimism runs high as the region is ably supported by the government, the private organizations, the business sector, and the enterprising spirit of the Hong Kong people.