Service industry reports double-digit increases in Q1 2023.

Accommodation services saw the most increase at 84.5%.

The service industry reported double-digit increases in almost all segments in the first quarter of 2023 compared to the same period last year according to Hong Kong’s Census and Statistics Department (C&SD).

Accommodation services business receipts went up by 84.5%, food services up by 81.7%, banking by 30.6%, retail by 24.1%, and administrative and support services by 21.9%.

On the other hand, double-digit decreases were recorded in business receipts of the transportation (-18.7%), import/export trade (-17.5%) and courier (-12.5%) industries during the same period.
 
Analysed by service domain, business receipts of the tourism, convention and exhibition services domain increased by 400.6% year-on-year during the same period, whereas those of the computer and information technology services domain decreased by 9.9% year-on-year.

On a seasonally adjusted quarter-to-quarter comparison, business receipts in value terms of most of the major service industries recorded increases of different magnitudes in the first quarter of 2023 when compared with the fourth quarter of 2022. In particular, double-digit increases were recorded in business receipts of the accommodation services (+53.4%) and retail (+12.0%) industries. On the other hand, a double-digit decrease was recorded in business receipts of the courier (-10.6%) industry during the same period.
 
Comparing the first quarter of 2023 with the fourth quarter of 2022 and on a seasonally adjusted basis, business receipts of the tourism, convention and exhibition services domain increased by 150.3%, whilst those of the computer and information technology services domain also increased by 5.5%.

According to a government spokesman, the business of many service industries improved in the first quarter of 2023, thanks to the strong recovery of inbound tourism and domestic demand. Yet, the weak external environment continued to weigh on the business performance of those service industries that are related to external trade.
 
The government expects that the recovery of inbound tourism and domestic demand will continue to benefit the domestically-oriented service industries. The disbursement of consumption vouchers and "Happy Hong Kong" events will provide additional support to consumption-related industries. Yet, slower growth in the advanced economies will continue to pose pressure on the externally-oriented service industries.