This Sept 13, 2019 file photo shows tourists visit Hong Kong's Disneyland. (PHOTO / XINHUA)

Hong Kong’s retail sales are expected to rise by 13 percent year-on-year to approximately HK$395 billion ($50.3 billion) in 2023, driven by the lifting of travel restrictions and the city’s ambitious global promotional drive, according to consulting firm PwC’s forecast released on Thursday.

The upbeat assessment of the outlook for Hong Kong's consumer market came after the provisional figures released last week by the Census and Statistics Department showed the city’s retail sales last year dropped by 0.9 percent over 2021’s level mainly due to the COVID-19 pandemic.

The campaign, unveiled by Chief Executive John Lee Ka-chiu on Feb 2, aims to lure visitors back to the city after three years of COVID-19 outbreaks

Michael Cheng Woon-yin, PwC’s Asia-Pacific, mainland and Hong Kong consumer markets leader, said the Asian hub’s retail sales this year will receive a welcome boost from both the Chinese mainland lifting quarantine requirements and its all-out promotional campaign “Hello Hong Kong”.

READ MORE: Rebound seen in HK travel but boom remains elusive

The campaign, unveiled by Chief Executive John Lee Ka-chiu on Feb 2, aims to lure visitors back to the city after three years of COVID-19 outbreaks. According to the Tourism Board, the first phase of the campaign will cost about HK$100 million, featuring 500,000 free airplane tickets for overseas travelers, spending vouchers, a number of major trade shows and conventions, as well as sports and art events.

“Tourism will begin a slow recovery with (an) estimated 20 million visitors coming to Hong Kong, which is a third of the peak of 65 million in 2018,” Cheng said.

“But while the border reopening will help, the retail sector in Hong Kong will still rely on local consumption in the first few months and it may be difficult to return to the levels seen before the pandemic.” he added.

READ MORE: Travel normalization to hasten HK recovery

Looking ahead, department stores and the luxury sector, including jewelry, will continue to revive by around 40 percent in 2023, while clothing, footwear and allied products will grow by about 20 percent, supported by the recovery in tourism and the strengthening Chinese yuan, Cheng said.