Retail sales and restaurant receipts

Statistics on retail sales and restaurant receipts are compiled from the results of the Monthly Survey of Retail Sales and the Quarterly Survey of Restaurant Receipts and Purchases respectively.  The surveys include sampled establishments drawn from all the retail and catering establishments registered with the Business Registration Office of the Inland Revenue Department. The value index measures the change in value terms, while the volume index, obtained by deflating the value index by a specially constructed price index, measures the change in real terms.

Retail sales statistics are primarily intended to measure the sales receipts of goods sold by local retail establishments, for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods, but not  on services. Moreover, they include spending on goods by visitors in Hong Kong but not by Hong Kong residents outside Hong Kong. Hence they should not be regarded as a comprehensive indicator of overall consumer spending. 

Users interested in the trend of overall consumer spending should refer to the quarterly series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product (GDP). Compiled from a wide range of data sources, PCE covers consumer spending on both goods (purchased from all channels) and services by Hong Kong residents whether domestically or abroad.

Retail sales and restaurant receipts statistics are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0 and the series have been backcasted to October 2004 and the fourth quarter of 2004 respectively. Users may refer to the feature article "Revision of the Hong Kong Standard Industrial Classification" published in the November 2008 issue of the Hong Kong Monthly Digest of Statistics for more details on the revision of HSIC.

For the Industry Sections of Import/Export, Wholesale and Retail Trades, and Accommodation and Food Services :

An establishment is ideally an economic unit (i.e. a unit engaged in the production of goods or services) which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted and in this case, the reporting unit is treated as an establishment.

Number of persons engaged
= number of working proprietors, active partners and unpaid family workers + number of employees

Compensation of employees
= wages and salaries (including share-based payments granted to employees) + payments in kind and employer's social security expenditure (including contributions to Mandatory Provident Fund schemes, messing, medical expenses and premiums for employees’ compensation insurance)

Operating expenses
= rent, rates and government rent for land and buildings + interest payments, bill interest and loan interest + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + expenses on commissions (excluding patents, trademarks, copyrights and franchises expenses) + patents, trademarks, copyrights and franchises expenses + commissions/services charges paid to electronic money card and credit card issuers + charges paid to banks, deposit-taking companies and other financial institutions + transport and travelling expenses + postage and courier service expenses + newspaper and magazines, and communications expenses + advertisement or promotion, sample and exhibition + entertainment expenses + accounting, audit, legal fees + other professional and business services fees + business management fee/management fee and administration charges paid to related companies + expenses in maintaining representative offices outside Hong Kong + insurance premiums + staff training expenses + other operating expenses (including declaration, licence and business registration fees, subscription and membership fees and information technology related services expenses)

Operating expenses do not include provision, loss on disposal of fixed assets, bad debts, fine, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and tax payments.

Total value of purchases of goods for sale (for import/export, wholesale and retail trades) excludes purchases of goods for offshore trading.

Total value of purchases of goods for sale (for accommodation and food services sectors)
= value of purchases of food + value of purchases of beverages + value of purchases of other goods for sale

Changes in stocks
= book value of stocks at end of reporting period - book value of stocks at beginning of reporting period

Sales and other receipts (for import/export, wholesale and retail trades)
= value of sales of goods + receipts for services rendered + rental income from letting/subletting land and premises + income from other sources

Sales and other receipts (for accommodation and food services sectors)
= sales of food, beverages and other goods + room sales and receipts for services rendered + rental income from letting/subletting land and premises + income from other sources

Value added
= sales and other receipts - income from other sources - total value of purchases of goods for sale - operating expenses + interest payments + changes in stocks

Gross surplus
= sales and other receipts - compensation of employees - operating expenses - total value of purchases of goods for sale + changes in stocks

For the Industry Section of Transportation, Storage and Courier Services:

An establishment is defined as an economic unit (i.e. a unit engaged in the production of goods or services) which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted for data collection purposes and in this case, the reporting unit is treated as an establishment.


Number of persons engaged

= number of working proprietors, active partners and unpaid family workers + number of employees


Compensation of employees

= wages and salaries (including share-based payments granted to employees) + payments in kind and employer's social security expenditure (including contributions to Mandatory Provident Fund schemes, messing, medical expenses and premiums for employees’ compensation insurance)


Operating expenses

= Rent, rates and government rent for land and buildings + interest payments + charges paid to banks + service charge paid to electronic money card and credit card issuers + agency fees, commissions and brokerage fees + patents, trademarks, copyrights and franchises expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water and electricity + freight charges and cost of transport contract work (including travelling expenses) + charter hire of transport equipment + postal and courier service expenses + service fees for loan of machinery and equipment + payments to outworkers + storage expenses + newspaper / magazines and communications expenses + insurance premiums + business management fee / administration charges paid to related companies + expenses in maintaining representative offices outside Hong Kong + advertisement or promotion expenses + accounting, audit fee and legal fees + other professional services fees + information technology and related services expenses + entertainment expenses + tunnel, bridge and link toll payables, vehicles parking fees and gate charges + port charges + aircraft landing and parking expenses + staff training expenses + other operating expenses (including cleaning expenses, laundry service expenses, recruitment, security service expenses and licence fees, etc)

Operating expenses do not include provision, gain/loss on disposal of fixed assets, bad debts, penalty, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and taxation payments.


Business receipts and other income

= passenger revenue + freight revenue (including revenue from rendering cargo forwarding, warehousing and courier services) + rental for charter hire of transport equipment + other business receipts + rental income from letting/subletting land and premises + income from other sources

Business receipts and other income do not include insurance claims, gain/loss on disposal of fixed assets, gain/loss on trading securities as well as investments on futures and fuel hedging.


Value added

= business receipts and other income - income from other sources - operating expenses + interest payments + payments to outworkers


Gross surplus

= business receipts and other income - compensation of employees - operating expenses


Service activities incidental to land transportation and other land transport services include car park operation, vehicular tunnel, bridge and highway operators as well as vehicles towing.


Service activities incidental to water transportation include container terminal and marine cargo terminal operators, mid-stream operation, port facilities operators, container back-up activities (including container freight stations, container yards, container leasing, vanning and devanning) as well as pilotage services.


Service activities incidental to air transportation include operation of airway terminal facilities, airport and air-traffic-control activities, and ground service activities on airfields etc.


Other transportation support activities include air, sea and land cargo forwarding agents, establishments engaged in packing and crating of goods for transportation, establishments providing cargo surveying services connected with transportation as well as shipbrokers.


Ship repairing establishments (which are classified under the manufacturing sector), ship chandlers (which are classified under the import/export, wholesale and retail trades) and ship surveying establishments (which are classified under the professional, scientific and technical activities sector) are not included in transportation, storage and courier services sector.

For the industry sections of information and communications, financing and insurance, professional and business services :

An establishment is defined as an economic unit (i.e. a unit engaged in the production of goods or services) which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted for data collection purposes and in this case, the reporting unit is treated as an establishment.

Number of persons engaged
= number of working proprietors, active partners and unpaid family workers + number of employees

Compensation of employees
= wages and salaries (including share-based payments granted to employees) + payments in kind and employer's social security expenditure (including contributions to Mandatory Provident Fund schemes, messing, medical expenses and premiums for employees’ compensation insurance)

Operating expenses
(i) For information and communications industry :
= rent, rates and government rent for land and buildings + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and traveling expenses + communications expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit, legal fees and other expenses for business services + expenses in maintaining representative offices outside Hong Kong + entertainment expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + commissions and brokerage fees + cost of contract work + payment for royalties for the use of patents, trademarks, copyrights and franchises owned by others (paid to government and bodies other than government) + rental payment for hiring machinery and equipment + film and video rentals + payments to local independent artists + payments to artists abroad + staff training expenses + other operating expenses

(ii) For banking industry (for domestic banking units) :
= service charges, commissions and fees paid in respect of banking and financial services + administrative expenses paid to parent and affiliated companies + rent, rates and government rent for land and buildings + office stationery and supplies purchased + expenses on advertisement or promotion/ sample/exhibition + postage, telephone, courier service/fax/network fee + entertainment expenses + staff travelling expenses + business consulting, public relations and other professional fees paid + computer services + registration, licence, annual and establishment fees + staff training expenses + other operating expenses

(iii) For banking industry (for local representative offices of foreign banks) :
= registration, annual and establishment fees + other operating expenses

(iv) For financing (except banking) industry :
= rent, rates and government rent for land and buildings + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and traveling expenses + communications expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit, legal fees and other expenses for business services + expenses in maintaining representative offices outside Hong Kong + entertainment expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + commissions and brokerage fees + cost of contract work + staff training expenses + other operating expenses

(v) For insurance industry :
= rent, rates and government rent for land and buildings + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and traveling expenses + communications expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit, legal fees and other expenses for business services + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + claims-handling expenses (for insurance underwriting only) + staff training expenses + other operating expenses

(vi) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
= rent, rates and government rent for land and buildings + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and traveling expenses + communications expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit, legal fees and other expenses for business services + expenses in maintaining representative offices outside Hong Kong + entertainment expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + commissions and brokerage fees + cost of contract work + payment for royalties + payments to local independent artists + payments to artists abroad + staff training expenses + other operating expenses

(vi) For travel agency, reservation service and related activities :
= rent, rates and government rent for land and buildings + interest expenses, bill interest and loan interest + charges paid to banks, deposit-taking companies and other financial institutions + transport and traveling expenses + communications expenses + administration charges paid to related companies + advertisement and business promotion expenses + accounting, audit, legal fees and other expenses for business services + expenses in maintaining representative offices outside Hong Kong + entertainment expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water + expenses on electricity + commission / service charge paid to electronic money card and credit card issuers + commissions and brokerage fees (excluding commission / service charge paid to electronic money card and credit card issuers) + cost of contract work + payment for royalties + payments to local independent artists + payments to artists abroad + charter hire of transport equipment + tours cost + cost of airline, vessel, train and bus tickets sold + staff training expenses + other operating expenses

Changes in stocks (for the industry sections of information and communications, professional and business services only)
= book value of stocks at end of reporting period - book value of stocks at beginning of reporting period

Business receipts and other income
(i) For information and communications industry :
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest receipts + rental income from letting/subletting land and premises + dividends + gain/loss from trading of financial assets + receipts from royalties for licensing others to make use of your patents, trademarks, copyrights, and franchises + income from other sources

(ii) For banking industry (for domestic banking units) :
= commissions and fees received in respect of credit, bills transactions and loans (excluding syndicated loans) + charges received in respect of current account operations, executor and trustee services, guarantees, portfolio management, custody and remittance services + charges received in respect of investment banking services + commissions and fees received in respect of syndication of loans + commissions and fees received in respect of financial assets dealing and broking + administrative fees received from parent and affiliated companies + receipts from other banking and financial services rendered + rental income from letting/subletting land and premises + net interest receipts (viz. interest received less interest paid) + profit or loss from foreign exchange dealing + profit or loss from trading in securities + dividends received + income from other sources

(iii) For financing (except banking) industry :
= receipts from services rendered + receipts from rental of machinery and equipment + interest receipts + rental income from letting/subletting land and premises + dividends + gain/loss from trading of financial assets + income from other sources

(iv) For insurance industry - insurance underwriting :
= total premiums received + total reinsurance commissions received in respect of direct insurance and inward reinsurance + net income from investment + receipts from services rendered + income from other sources

(v) For insurance industry - activities auxiliary to insurance and pension funding :
= receipts from services rendered + rental income from letting/subletting land and premises + income from other sources

(vi) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest receipts + rental income from letting/subletting land and premises + dividends + gain/loss from trading of financial assets + receipts from royalties for licensing others to make use of your patents, trademarks, copyrights, and franchises + government subvention + income from other sources

(vii) For travel agency, reservation service and related activities :
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest receipts + rental income from letting/subletting land and premises + passenger revenue + freight revenue + revenue from charter hire out of transport equipment + Revenue from services related to outbound travel, inbound travel, domestic travel and other travel services + income from other sources

Value added
(i) For information and communications Industry :
= business receipts and other income (excluding interest receipts, dividends, gain/loss from trading of financial assets and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments)

(ii) For financing (except banking) industry (except investment and holding companies, financial leasing, and credit granting (except financial leasing)) :
= business receipts and other income (excluding interest receipts, dividends, gain/loss from trading of financial assets and income from other sources) –operating expenses (excluding interest payments)

(iii) For financing (except banking) industry (for financial leasing and credit granting (except financial leasing))
= business receipts and other income (excluding dividends, and gain/loss from trading of financial assets and income from other sources) – operating expenses

(iv) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
= business receipts and other income (excluding interest receipts, dividends, gain/loss from trading of financial assets, government subvention and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments)

(v) For travel agency, reservation service and related activities :
= business receipts and other income (excluding interest receipts and income from other sources) –total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments)

Gross surplus
(i) For information and communications industry :
= business receipts and other income – compensation of employees – operating expenses – total value of purchases of goods for sale + changes in stocks of goods for sale

(ii) For financing (except banking) industry :
= business receipts and other income – compensation of employees – operating expenses

(iii) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
= business receipts and other income – compensation of employees – operating expenses – total value of purchases of goods for sale + changes in stocks of goods for sale

(iv) For travel agency, reservation service and related activities :
= business receipts and other income – compensation of employees – operating expenses – total value of purchases of goods for sale + changes in stocks of goods for sale

Business receipts indices

To facilitate analysis of the short-term business performance of the services sector, business receipts indices (BRIs) are currently compiled for 22 selected service industries and 2 service domains, having regard to their importance in the services sector. 

The data source for compiling BRIs for most service industries (except those for the retail, food services and banking industries and the tourism, convention and exhibition services domain) is the Quarterly Survey of Service Industries (QSSI) conducted by the Census and Statistics Department (C&SD) starting from 1993. The survey includes some 5 200 sampled establishments drawn from all establishments engaging five or more persons in the import and export trade, wholesale, accommodation, transportation, warehousing and storage, courier, information and communications, financing (except banking), insurance, real estate, professional, scientific and technical services, and administrative and support services industries. Certain establishments that are not engaged in service activities (e.g. local representative offices of overseas shipping and airline companies, and investment holding companies) are not covered. The establishments covered are selected from the Central Register of Establishments maintained by the C&SD and updated by reference to records of the Business Registration Office of the Inland Revenue Department. Besides, government bureaux/departments and non-profit making organisations are excluded from the survey.

Government bureaux/departments and non-profit making organisations are excluded from the survey.  Besides, certain establishments that are not engaged in service activities (e.g. local representative offices of overseas shipping and airline companies, and investment holding companies) are not covered.

BRI for banking is compiled based on data obtained from the Hong Kong Monetary Authority.  BRIs for the retail and food services industries are compiled based on data obtained from the Monthly Survey of Retail Sales and the Quarterly Survey of Restaurant Receipts and Purchases (both are conducted by the C&SD) respectively.

Regarding the tourism, convention and exhibition services domain (or tourism domain for short), part of the data are obtained from the Hong Kong Tourism Board.

A service domain differs from a service industry in that it comprises those economic activities which straddle different industries but are somehow related to a common theme. It may include all activities carried out by all establishments in a service industry that is closely related to the domain. For a service industry that is less closely related, however, only a portion of the establishments in the industry or even only part of the economic activities of the establishments is related to the domain.  Taking tourism domain as an example, it includes all services of all hotels and travel agents; and some (those involving visitors as customers) but not all of the services of restaurants, retailers and transport operators.

Starting from the first quarter of 2009, BRIs are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0,  and the series have been backcasted to the first quarter of 2005 (with the quarterly average of 2008 as base period).  Users may refer to the feature article "Revision of the Hong Kong Standard Industrial Classification" published in the November 2008 issue of the Hong Kong Monthly Digest of Statistics for more details on the revision of HSIC.
 

Producer Price Indices for Service Industries

Producer price indices for service industries measure the average change in prices received by producers of goods and services. Producer prices are transacted prices received by local producers for their output, net of any discounts, premiums, rebates or allowances given to buyers but including surcharges.

The producer price indices in respect of selected service industries in the table in Statistical Tables section are compiled mainly from data on producer prices of service products collected through the Quarterly Survey of Service Industries (QSSI). For some service products where price data are currently collected through the Consumer Price Index (CPI) system, relevant data are extracted from the CPI system instead of being collected through the QSSI.