hong kong tourism after covid

Hong Kong to allow international travellers for first time since 2020

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Reporting by Farah Master; Editing by Kirsten Donovan

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Hong Kong is opening up to tourism -- but is it too late?

Market vendor Mr. Chan gestures around what used to be one of Hong Kong's busiest streets.

"There are no tourists now, whatsoever," he says. Mr. Chan sells silver earrings, necklaces and scarves on Tung Choi Street in Kowloon, which is famous for its robust night market.

The past three years have been harsh on him. He kept his stall open until 10 p.m. before the pandemic, but these days he closes at 7 p.m.

He hopes for swift change with the end of quarantine, which had a devastating effect on businesses that relied on tourism.

Hong Kong has taken steps in recent days to reopen itself to the world, by first lifting its mandatory three-day hotel quarantine, then announcing a global banking summit in November.

Officials hope the move will revive Hong Kong's status as an international business and travel hub, but some locals feel the change may be too late.

A LONG WINTER

The lifting of the quarantine was received with elation by the city's residents, who have endured more than two years of crushing pandemic measures.

At its most strict, Hong Kong's quarantine rules required incoming travelers to spend 21 days in a hotel room paid at their own expense. Only Hong Kong residents were permitted entry.

Those unlucky enough to come from certain regions or countries with high numbers of coronavirus cases could find themselves in a government-run facility.

As a result, travel in and out of the financial hub was at record lows.

Once news of the end of quarantine was announced on Friday, September 30, travel-starved Hong Kongers flocked to book flights online. The city's flag carrier Cathay Pacific set up a virtual "waiting room" to get onto its website, where hold times could easily stretch to 30 minutes.

The online travel booking service Expedia said its website also saw a 9-fold surge in search for flights from Hong Kong to Tokyo and 11-fold for flights from Hong Kong to Osaka.

However, the interest in flights to Hong Kong remained unchanged, Lavinia Rajaram, Expedia's Asia head of public relations, said.

AN UNEVEN SUCCESS

Though hotel quarantine may be gone, the city still imposes a 3-day period during which visitors are barred from dining in restaurants or going to bars. That and the complicated visiting requirements, which include a pre-flight vaccination certificate and negative tests, may deter potential visitors.

In November, Hong Kong plans to host the International Rugby Sevens tournament, which has been held every year since 1976 except for the past two years. A popular spectacle that drew fans from abroad before the pandemic, it is doubtful how many will brave the border restrictions.

While drinking is allowed, food will be banned at the event. Fans will also be required to wear their mask at all times except when drinking, according to the city's government.

Hong Kong's Asian neighbours including Japan, Taiwan and South Korea took steps in past weeks to remove the last remaining barriers on travel, making them more attractive destinations for international travelers.

Another cloud hanging over the forecast is the continuing zero-Covid regime in mainland China. In 2019, the last year before travel became heavily restricted, 78 per cent of the city's visitors came from the mainland.

TOO LATE FOR SOME

The government's effort to reopen and promote the city came too late for Maxence Traverse, a restaurant owner who had to shut his business, Honi Honi Tiki Bar, last year.

He says the nine-year-old bar could not survive the 2019 protests and the pandemic. After a six-month hiatus, he opened a restaurant in the city's Tai Hang neighborhood but he is fighting to keep it going, he said.

Traverse's business is one of many in the food and beverage industry that shut down permanently during the pandemic. Some of the city's iconic Cantonese restaurants -- including Mido Cafe, Jimmy's Kitchen and Lin Heung Tea House -- have also closed their doors.

Traverse was greatly upset when he saw an interview with Hong Kong Health Secretary Lo Chung-mau, in which Lo said Hong Kong will continue to open up unless a new Covid variant emerges.

"I cried. Depression. Really hard, that hard feeling. I said, 'Not again.' Nearly third year in a row. You know, it's been tough," Traverse said.

He believes simply reopening the city will not be enough to restore what drew him there 12 years ago.

"We need to be providing excitement for Hong Kong, because right now we lost so many things," he said.

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Follow our news, recent searches, commentary: lifting travel curbs may not revitalise hong kong economy, advertisement.

It’s easier to travel to Hong Kong than before, but policy adjustments may not help the city’s devastated tourism sector recover so soon, says Jacky Leung.

Jacky Leung

LONDON: One of the first things many Hong Kong residents took on Wednesday morning (Dec 14) was to delete the city’s contact tracing app, LeaveHomeSafe, from their phones. The requirement to check in on the app upon entering premises was lifted in the latest round of COVID-19 policy revisions .

These changes follow the wave of protests against strict COVID-19 measures that swept through China, and the country relaxing its rigid control . Hong Kong took its cue from Beijing in retiring its COVID-19 tracking app .

Hong Kong Secretary for Health Lo Chung-mau, who has hit back at critics of the city’s pandemic strategy and seldom bowed to pressure, has fallen in line with the central government's updated policy, despite the number of confirmed COVID-19 cases in Hong Kong having exceeded that in the summer.

Hong Kong has similarly relaxed travel restrictions, most notably scrapping the “0+3” system under which travellers are not allowed entry into “high-risk premises” such as restaurants, pubs and theme parks on the first three days of arrival.

Snap Insight: Hong Kong lifts all travel curbs – could this be the test balloon for China’s reopening?

Though travellers still need to display proof of vaccination and undergo PCR tests upon arrival, it is no doubt easier to travel to Hong Kong than before. Still, it is impossible to say the adjustment will bring the devastated tourism sector a bright future in 2023.

HONG KONG RELIES HEAVILY ON CHINA TRAVELLERS

The "0+3" rule was announced in September to aid the recovery of the tourism industry while allowing for medical surveillance of inbound travellers. But the 0+3 system has not only turned into a public relations crisis for the city , it has also proven ineffective.

Hong Kong airline Cathay Pacific reported that its passenger volume in November was only 20 per cent of that before the pandemic, though it has seen rebounds in passenger numbers on flights to popular destinations like Japan.

Commentary: 500,000 free air tickets won’t be enough to revive Hong Kong’s battered tourism sector

Commentary: Hong Kong's zero-COVID policy an opportunity for Singapore to become Asia’s leading international air hub

Because Hong Kong’s tourism sector has always been buoyed by Chinese tourists, its recovery depends on the willingness of the Chinese government to lift movement controls . While visitors from China to Hong Kong no longer have to undergo an additional PCR test at land checkpoints or the airport, visitors from Hong Kong to China are still limited by daily quotas and have to complete five days of hotel quarantine .

If the Chinese government relaxes travel restrictions further during long holidays such as Chinese New Year and Labour Day, Hong Kong’s tourism industry may have hope for 2023.

TOURISM IN MAJOR CITIES MAY TAKE YEARS TO HEAL

Even then, it is not guaranteed that the number of tourists can return to pre-pandemic levels. Writing from London, the city centre sees thousands of tourists every day, leading one to believe the tourism industry has blossomed again.

However, official data shows that the number of incoming tourists to the UK is 20 per cent less than in 2019, even in the busy summer. Global economic uncertainty and strong inflation have put pressure on travellers, likely weakening demand for visiting the country in early 2023.

Visiting Hong Kong soon? Here's what you need to know about the revised entry rules

Commentary: The world economy catches some lucky breaks

It may not be until 2025 that UK tourist numbers can fully recover . Likewise, Hong Kong’s tourism sector may take years to heal.

At the same time, long-term factors such as the city's image and competitiveness take away from Hong Kong’s allure for leisure and business travellers . They are not factors that changing COVID-19 policies could affect.

Hong Kong is slow to reopen itself to travellers compared to many countries. It also still has COVID-19 restrictions after the latest review, such as mandatory mask-wearing and showing vaccination proof to enter restaurants.

Hong Kong’s most recent easing of COVID-19 measures appears to be influenced by China. It is unclear whether the local government believes it is the right time to reopen Hong Kong, as officials have previously fiercely defended the strict measures .

Following Chinese policies could help Hong Kong connect with China, but it takes more to link up to the world. Only when officials have the empathy to understand that people wish to return to normal after three years of the pandemic can they implement appropriate policies.

Jacky Leung is an award-winning journalist who has worked in multiple Hong Kong TV and radio news stations. He is currently based in London.

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After Pandemic Barriers, Can Hong Kong Recover as a Global Metropolis?

Officials are saying the city will bounce back. But even before 2020, Chinese control was changing Hong Kong’s character and driving people away.

By Alexandra Stevenson

HONG KONG — Luxury storefronts have been replaced by pop-up shops selling masks. Whole floors of skyscrapers are deserted. Streets once crammed with locals and visitors jostling for space are quiet.

This is “Asia’s World City,” Hong Kong’s self-appointed title, after more than two years under some of the world’s toughest pandemic rules. The city now wants to reclaim that cosmopolitan status by taking its biggest step toward living with Covid-19: scrapping a crushing quarantine mandate that at one point required 21 days in a designated hotel and easing restrictions on the global gatherings that gave it its reputation as an international metropolis.

But uncertainty lingers over the new approach, which still prohibits visitors from going to places considered high risk like restaurants, bars and gyms during their first three days in the city, and many industry leaders say the changes are not enough to pull Hong Kong out of an economic recession and restore its once-clamorous social life.

There are deeper worries, too. The fact that Hong Kong began to diverge from China’s “zero Covid” policy only after Beijing gave its blessing has touched off worries over the city’s broader loss of autonomy . Before the pandemic, the former British colony was already changing in irreversible ways after months of citywide pro-democracy protests. Beijing then unleashed a devastating crackdown that shut down or pushed out some of the people and things that made Hong Kong unique to the rest of China: a politically boisterous, irreverent, semiautonomous city.

“For Hong Kong’s international credibility, it is shot to pieces,” said David Webb, a longtime corporate governance activist in Hong Kong. As the city scrambled to get a grip on a Covid outbreak earlier this year, its leaders fumbled. They lurched back and forth between insisting on ever-more restrictive policies that mirrored China’s own draconian approach and backing off, panicking residents and triggering an exodus, predominantly of foreigners.

“What happens the next time there is a health threat?” Mr. Webb asked. “They have done permanent damage to our reputation as having autonomy in matters like this.”

Under John Lee, a former police officer who became the city’s chief executive in July, Hong Kong has loosened restrictions more quickly than at any point in the pandemic. He has assured residents that the city will continue to move in that direction while emphasizing the need to also protect people from future outbreaks.

Other politicians have struck a similar tone.

“We have not lost the title — you could say it’s a bit tarnished,” said Tommy Cheung, a legislative councilor representing the catering industry and an adviser to Mr. Lee. “We have more people leaving than coming, but that happens all over the world. That doesn’t mean we are no longer a global city.”

Despite the positive spin, the damage of the past few years has been devastating. After decades in Hong Kong, many multinational companies have pulled their headquarters and staff out, moving to less restrictive places like Singapore and Seoul. International teachers, foreign athletes and many of Hong Kong’s own professional elite have left. For many, the move is permanent, but for some, Covid was only the latest worry.

“In some ways, Hong Kong is just another big city in China now,” said Meredith Haskins, a former teacher at Hong Kong International School who retired in June. Teachers have left amid continuing school disruptions and fears about possible mass testing and family separations in government quarantine. A long stretch of a mandatory 21-day hotel quarantine for many arrivals and several rounds of social distancing measures have weighed on families.

But the city’s changing political atmosphere has cast a shadow, too. Curriculum guidelines issued by the government last year emphasize loyalty to mainland China, its leaders and its coercive methods, and many worry that it is only a matter of time before the new national security law negatively affects curriculums at international schools. Schools have had difficulty filling positions.

Strict Covid rules have also made it hard for foreign businesses to persuade employees not to leave Hong Kong. Companies have complained that even with the loosened rules, travel barriers remain for new hires from abroad and those who want to visit for a conference.

Whether Hong Kong can return to being an attractive city for foreign businesses “would mean a massive effort to rebuild Hong Kong’s global image,” said Frederik Gollob, the chairman of the European Chamber of Commerce in Hong Kong.

Finance industry professionals are even more explicit. To regain its competitiveness, they say, Hong Kong has to put itself back on a par with other international financial centers like London, New York and Singapore.

“It is incumbent upon the government to wean the community away from being fixated on Covid — return to normalcy is key,” said Sally Wong, the chief executive of the Hong Kong Investment Funds Association, which represents big global investment firms including BlackRock. In a recent survey from the group, more than a third of investment firms said they had moved some or all their regional and global executives out of Hong Kong.

The exodus has been harmful to the economy and Hong Kong’s labor force, which has shrunk to a decade low. The city’s financial secretary warned this month that Hong Kong was likely to finish the year in a recession.

Parts of pre-Covid Hong Kong will probably never return.

Media companies, including The New York Times, and nongovernmental organizations began moving staff to other Asian cities like Seoul and Tokyo in 2020, over uncertainty that followed Beijing’s imposition of the sweeping new national security law.

Much of Hong Kong’s once-vibrant civil society is unlikely to return. Some industries that depend on the city’s open border are cautiously optimistic but unsure whether the easing of Covid restrictions goes far enough.

An early test will be the Hong Kong Sevens rugby tournament, one of the city’s best-known sports events, which will take place in November for the first time since the start of the pandemic.

Presale tickets are down 30 percent from 2019, as international corporate sponsors express uncertainty about the event, said Robbie McRobbie, chief executive of the Hong Kong Rugby Union. Overseas spectators will not be able to attend until they have passed three days of health monitoring.

“Whether or not we will be able to put up the sold-out signs, I’m not sure at this stage,” Mr. McRobbie said. There is also confusion over whether the 350 athletes, coaches, referees and medical-support teams will have to remain in a closed loop for the first three days, restricted to their hotel and the stadium.

The main beneficiaries of quarantine changes so far have been tour operators. “It’s a very positive direction,” said Moon Yau, the assistant general manager at Sunflower Travel Services, which does tours to Japan, Europe and mainland China. Since Friday, when officials announced the change in rules, he had received more than 300 inquiries a day about trips, he said. He added that for now, they had been mostly residents taking their first overseas holiday in nearly three years.

For others, the impact is more mixed. The first weekend after the announced changes, revenues fell at Black Sheep Restaurants’ nearly 40 restaurants across the city, said Syed Asim Hussain, a co-founder, as residents rushed to leave the city on long-planned overseas trips. The new rules are not enough to bring people to Hong Kong, he said, and he plans to write a complaint to the government.

He said he also wonders whether Hong Kong has changed irrevocably after months of protests, the silencing of dissent that followed and more than two years of isolation.

“My industry demands that I be optimistic, but I haven’t found many reasons for optimism for three years,” Mr. Hussain said. “It’s been so difficult. In some ways — even though safety is in sight — it is more frustrating.”

“I definitely feel,” he added, “that we have been through something really heavy collectively, as a community.”

Zixu Wang contributed reporting.

Alexandra Stevenson is the Shanghai bureau chief for The Times. More about Alexandra Stevenson

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Travelling to Hong Kong? Here's what you need to know

A guide to help you prepare for your entry into the city

International travellers are free to come to Hong Kong, and there are no more restrictions upon arrival.  If you have some enquiries about travelling to the city, we've compiled a guide to help you with everything you need to know when entering Hong Kong, from things to prepare before arriving at Hong Kong International Airport to all the steps you must take as soon as you land.  

RECOMMENDED:  Keep updated with the  latest Covid-19 measures in the city . 

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Who can visit Hong Kong now?

Hong Kong has already dropped the vaccination requirement for Hongkongers and international arrivals. Unvaccinated residents and non-residents will be able to enter the city without restriction .  

What are the requirements to enter Hong Kong?

With Covid-19 measures now eased in Hong Kong, including arrival restrictions, international travellers looking to explore the city are now free to enter. Of course, if your country requires a visa to visit Hong Kong,  please obtain one before your trip . 

Negative RAT or RT-PCR test results before boarding are no longer required . 

Will they allow entry if my visa is expiring?

If you're not a permanent Hong Kong resident and travelling under a work or tourist visa, ensure your visa has a sufficient validity period, or you will be denied entry. 

The Immigration Department (ImmD) provides electronic services for visa application and 'e-Visa' arrangements , allowing applicants to complete the entire process without going to the immigration office in person. Suppose your visa is under renewal and is getting delayed. It is best to send an authorised representative to the ImmD office to fix your reentry as emails and phone calls will take a long time. 

Visit this link to see ImmD online services for acquiring Hong Kong visas. 

Can arrivals move freely around the city?

Yes, Covid-19 regulations have already eased in Hong Kong. You can freely  explore all the incredible things to do in the city . Mask-wearing mandate, the last major rule to fight against Covid-19, has been lifted since March 1. 

For more clarity,  here's our guide on everything you need to know  about Hong Kong's current Covid-19 restrictions. 

Do I still need to take Covid-19 tests?

You don't need to present negative Covid-19 results when you arrive at the Hong Kong airport, but the government recommends taking daily RAT until the fifth day of arrival (arrival date count as Day 0). Those who take the test may voluntarily declare the result  via the Department of Health's Electronic Covid-19 Monitoring & Surveillance System (eCMSS) .  

Ok, so you finally booked your flight, what to do next?

To ensure a smooth and efficient arrival, prepare all your travel documents, including visa for non-Hong Kong residents. 

What time should I go to the airport for departure? 

Delays, cancellations, and a whole lot of waiting may happen before departure, so make sure to be at the airport at least three hours before your flight. Account for extra time if you encounter any problems with airline check-in. 

Arrival at Hong Kong International Airport

Yes, you're finally in Hong Kong, but not just yet. You still have a few more steps to finish before entering. Though the new system significantly cuts the waiting time in the airport, the influx of inbound travellers may affect processing time.

After landing, all inbound persons will pass through temperature checks upon arrival. Those with symptoms will be referred to the Department of Health for further handling. If you're cleared, you can proceed with immigration procedures, baggage collection, and continue taking public transportation to your hotel or home.

What are the options for airport transfers?

Travellers arriving in the city can take public transport to their destination. Those who want a limousine service can contact their hotels for arrangements.  One of the fastest ways to travel from the Airport to the city is through Airport Express.

Find more information  here . 

What if I tested positive for Covid-19?

Hong Kong government no longer issue isolation orders to infected Covid-19 cases since January 30. The government advises symptomatic persons to stay at home to rest and avoid going out. Those who are asymptomatic can go out at will or go to work.

If you belong to high-risk groups and suffer from fever, cough, shortness of breath, vomiting, and diarrhoea, the government recommends that you seek medical attention. 

For more information, visit this  link .   

Got more questions?

The government has set up a page for all your questions about inbound travel to Hong Kong . Due to the changing nature of Covid-19 measures, please  visit this link  to keep updated with the latest travel regulations. 

Feel free to roam Hong Kong!  These itineraries will give you a dose of inspiration . Looking for hotel accommodations during your trip?  Here's a guide to some of our favourite Hong Kong hotels  – all tried and tested by our editors. You can also check out   the most romantic hotels  in the city or schedule a weekend getaway from the  best beachside hotels ,  boutique hotels , or  luxury camping spots in town .  

You've been gone a while, here's what's new in HK

50 Most incredible things to do in Hong Kong

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Whatever you're looking for, there are plenty of places to visit and activities to keep you entertained in the 852. 

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A definitive list of the 50 best Hong Kong bars to visit right now.

50 Best restaurants to try in Hong Kong

The best places to eat in the city, from traditional Japanese and fine French to hipster hangouts, hidden gems, and everything else in between.

New restaurants to try in Hong Kong

The latest and greatest restaurants to get stuck into this month

New bars to try in Hong Kong now

A  list of new drinking dens to add to your bar-hopping itinerary. 

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Hong Kong prepares for an increase in tourism after COVID curbs ease

Hong kong is readying for a surge in travel after the global financial hub ended mandatory covid-19 hotel quarantine for international arrivals..

Hong Kong is readying for a surge in travel after the global financial hub ended mandatory COVID-19 hotel quarantine for international arrivals on Monday, with travel companies reporting 10-fold jumps in requests. The curbs were lifted for the first time in more than 2-1/2 years after the city's leader, John Lee, said last week that such arrivals could return home or seek accommodation of their choice, but had to self-monitor for three days on entry. (Also read: Hong Kong mulls changing Covid-19 hotel quarantine policy for all arrivals )

"I have been waiting for this for almost three years," said 58-year-old Hong Kong resident, Barbara Van Moppes, who arrived from Bangkok. "The rest of the world has opened up and so Hong Kong needs to open up now and return to normal because it’s such a fantastic place to live." All international arrivals in the Chinese special administrative region had previously been forced to stay for as long as three weeks in hotel quarantine at their own expense, though the period was gradually cut to three days. But Monday's change still leaves Hong Kong far behind much of the world in dropping curbs.

International arrivals are barred from bars and restaurants for three days. Although allowed to go to work and school, they still need to do multiple COVID tests in the first week after arriving.

Still, Hong Kong's Travel Industry Council expects outbound travel to surge as much as 50% in the next few months, executive director Fanny Yeung told public broadcaster RTHK. Growth would be capped by the number of outbound flights, however, Yeung cautioned, while inbound tourism was not likely to grow by much, inhibited by the existing curbs. Travel website Expedia Hong Kong said searches for Japan surged to 10 times last week while those for Taiwan almost doubled over the prior 14 days. Trip.com said flight searches surged 95 times and orders soared 50% on its Hong Kong site on the week, with Tokyo, Bangkok, Osaka and Singapore featuring as top destinations. International aviation body IATA said the next step would be for Hong Kong to scrap all COVID-19 measures. The former British colony had been a global outlier outside mainland China in imposing hotel quarantine for international arrivals, in line with the country's "dynamic zero" COVID strategy.

Business groups, diplomats and many residents had slammed the COVID-19 rules saying they threatened Hong Kong's competitiveness and standing as a global financial centre. Still, residents landing at the city's airport were thrilled by Monday's easing. "It’s now totally hassle-free, so I just came out within 30 minutes," said businessman Marjuk Mutahlif, 32. "I can go."

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Hong Kong Inbound Tourism Numbers Soar 70 Times After 2023 Reopening

In January 2023, the number of visitors to Hong Kong jumped nearly 70 times compared with the year before. Arrivals clocked in at 498,689 after the city’s gradual reopening to the world, following nearly three years of stringent zero-COVID lockdowns and entry restrictions.

According to Reuters , the city’s retail sales in January rose from 33.7 billion in 2022 to 36.2 billion in 2023, up 7 percent. Watches, jewelry and other valuable goods saw the greatest increase in sales, rising 23.1 percent, according to the same report. Meanwhile, fashion and footwear sales grew by 14.7 percent in January — rosy signs for a slow but steady recovery on the horizon.

In pre-pandemic times, mainland Chinese tourists in Hong Kong accounted for the consumption of many of the aforementioned goods, especially in the jewelry, watches and luxury spaces. The city, which fully reopened its borders with China in early February , has continued to see a growing number of arrivals over recent weeks. Local businesses and retailers are hopeful the return of mainland travelers will boost Hong Kong’s sluggish economy, which has been embattled since the 2019 pro-democracy protests.

In an effort to jumpstart tourism, retail, and investment sectors, the Hong Kong government is launching a 255 million “Hello Hong Kong” tourism campaign, which will also involve giving away half a million air tickets to international visitors. One goal is to raise the city’s retail sales by 22 percent, according to Bloomberg.

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However, the campaign has come under fire by critics for its lackluster messaging, and for being “ frothy, vapid and meaningless, ” according to PR insiders quoted in a report by PRovoke Media.

"What’s lacking is emotional connection to the 'real' HK — the alleys of Central, the eclectic atmosphere of older districts, the beauty of HK’s natural environment, the unknown attractions such as mountain bike trails and running trails, and beaches, and creative use of the two new drawcards of M+ and Palace Museum," another communications expert told PRovoke Media. “So far the emotional connection is missing.”

It remains to be seen how Hong Kong’s ongoing efforts to re-engage and reconnect with the outside world will play out.

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Poor weather and weak yuan threaten Hong Kong’s Golden Week plans for mainland Chinese tourists

HONG KONG – Hong Kong has pulled out all the stops to welcome at least 800,000 mainland visitors during China’s five-day Labour Day holiday, but stormy weather and a weak yuan threaten to throw a spanner in the works.

Thunderstorms and occasional showers have been forecast throughout the Golden Week national holiday from May 1 to 5, with some sunny intervals only in the final three days, according to the Hong Kong Observatory.

The poor weather could result in a major fireworks display across Victoria Harbour on the evening of May 1 being called off, the city’s tourism chief Kevin Yeung said on April 28.

The 10-minute marine pyrotechnic display is meant to be the first of a series of regular fireworks shows put up to boost tourism in the city.

Some restaurateurs are concerned that the rainy weather would affect business during the crucial holiday period, local broadcaster TVB reported.

“We’re situated at a great place to catch the fireworks – it’s al fresco,” said Mr Lau Ching Fung, the manager of a restaurant serving Western cuisine at the Wan Chai waterfront area. “But because most of our seats are outdoors, it will affect us significantly if it rains.”

The restaurant has a HK$560 (S$97) per person “fireworks dinner set” promotion for the May 1 holiday, but only 30 per cent of seats had been reserved so far, he said.

Hong Kong Federation of Restaurants and Related Trades president Simon Wong said the food and beverage sector could lose as much as 40 per cent of its holiday business due to the unstable weather.

Some retailers are also worried that the weakening Chinese currency could inhibit mainland tourists’ spending.

Since the start of the year, the yuan has fallen 2 per cent against the US dollar – to which Hong Kong’s currency is pegged – slumping to a five-month low. The weaker yuan means that Hong Kong’s goods are now comparatively costlier for mainland tourists.

These potential downers come after the authorities have gone the whole hog to prepare the city for an influx of tourists during the holiday period.

The Hong Kong government has predicted that more than 800,000 mainland tourists will visit and some 5.9 million people – mainlanders, Hong Kongers and foreigners – will cross the border checkpoints both ways throughout the holiday.

With these expectations in mind, the authorities have extended the operating hours of public transport systems across the city. They have ramped up cross-border bus services by 40 per cent and added 540 train trips along seven rail lines on three days during the Golden Week.

Major tourist attractions, including Disneyland, Ocean Park and the Palace Museum, are staying open for longer to cope with more visitors. Police officers have been deployed to combat illegal taxis and touting near tourist hot spots.

In Kowloon, a special shopping festival is offering discounts at more than 2,000 businesses in malls, hotels and restaurants along Tsim Sha Tsui and Mong Kok.

On Hong Kong Island, popular Taiwanese band Mayday is set to play seven shows to a combined audience of 140,000 people at the Central Harbourfront from April 30.

Months earlier, the Hong Kong government struck up partnerships with mainland influencers and travel firms to promote the city as an attractive tourism destination across the mainland.

Some 16,000 Hong Kong tourism vouchers worth a combined HK$3.2 million were distributed to residents in the Chinese cities of Xi’an in Shaanxi province and Qingdao in Shandong province.

The Chinese government in March added these two cities to a travel scheme of 49 other mainland cities – including Beijing, Shanghai and Chengdu – whose residents can visit Hong Kong on individual visas.

Tourism is a key pillar of Hong Kong’s economy, which has taken a beating since the Covid-19 pandemic. Mainland tourists have returned to the city more rapidly than those from other parts of the world.

In the last quarter of 2023, the number of mainland tourists had recovered to 80 per cent of the average in the five-year period between 2015 and 2019, compared with just 60 per cent of international visitors in the same period, according to the Hong Kong Tourism Board.

If the 800,000 mainland tourists materialise as predicted, the figure would be 30 per cent more than those who visited in the same period in 2023, the tourism board said.

The Travel Industry Council executive director Fanny Yeung told TVB that mainland tourism across Asia has improved, with mainland Chinese now able to visit destinations such as Singapore, Malaysia and Thailand visa-free since early 2024.

“Many mainland tourists, especially those from the Greater Bay Area, choose to visit Hong Kong first and tour the city for a day before travelling on to other destinations around South-east Asia,” she said. “In this aspect, Hong Kong has stood to benefit.”

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Regular fireworks show to begin May Day, as Hong Kong links up with mainland China influencers to boost tourism

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A marine pyrotechnic display will take place across Victoria Harbour during next Wednesday’s May Day public holiday, kicking off a campaign of regular fireworks shows to boost tourism, the Hong Kong Tourism Board (HKTB) has announced.

In a statement released on Thursday, the HKTB said the fireworks show will begin at 8pm on Labour Day near the Tsim Sha Tsui Promenade. The theme will be the colour gold, showcasing the initials “HK” and a smiley face.

The government announced during the 2024 Budget that some HK$1.09 billion had been allocated to boost tourism , with the HKTB hosting regular firework displays and drone shows as well as promoting activities such as city walks and hiking.

“It’s all part of an energising effort to soft-sell Hong Kong,” the financial chief Paul Chan said in Cantonese when he delivered the budget in late February.

Mainland Chinese residents enjoy five days of public holiday during the Labour Day Golden Week between May 1 and May 5. In a Thursday statement, the Immigration Department predicted that the city will process 5.7 million inbound or outbound travellers between April 30 and May 5.

Aside from the fireworks display, the HKTB announced that it had strengthened promotions “targeting mainland markets” prior to the Labour Day Golden Week, including partnerships with mainland Chinese influencers and travel agencies to promote the city.

The tourism board – a statutory body – has not responded to HKFP’s enquiries as to whether influencers it partnered with are paid, or have editorial independence.

This year, the HKTB has targeted mainland cities such as Xi’an and Qingdao, where residents have been allowed to visit Hong Kong on an individual visa as of early March, after Beijing further expanded a travel scheme for mainland travellers.

According to the HKTB, 16,000 discount coupons of HK$200 each have been distributed to visitors from the two cities.

Slow recovery of international tourists

Since Hong Kong reopened its borders last March following the Covid-19 pandemic, the number of mainland tourists has recovered more rapidly  than international visitors, with many looking to  social media for suggestions  on where to visit.

During the National Day Golden Week holiday last October, Hong Kong welcomed about 1.1 million mainland Chinese tourists, with the daily average number of arrivals from across the border reaching about 85 per cent of pre-pandemic levels.

Data from the Hong Kong Tourism Board shows that the number of mainland tourists in the last quarter of 2023 had recovered to around 80 per cent of the average seen in the five-year period between 2015 and 2019.

International tourists, however, saw a recovery of around just 60 per cent. Among them, visitors from South and Southeast Asia recorded the fastest growth. Numbers from Europe and the United States lagged behind.

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Irene Chan is a reporter at Hong Kong Free Press and has an interest in covering political and social change. She previously worked at Initium Media as chief editor for Hong Kong news and was a community organiser at the Society for Community Organisation serving the underprivileged. She has a bachelor’s degree in Journalism from Fudan University and a master’s degree in social work from the Chinese University of Hong Kong.

Irene is the recipient of two Society of Publishers in Asia (SOPA) awards and three honourable mentions for her investigative, feature and video reporting. She also received a Human Rights Press Award for multimedia reporting and an honourable mention for feature writing.

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Hong Kong homeowners cutting prices drastically even as secondary property market continues to climb

A n increasing number of homeowners in Hong Kong have been reducing their asking prices despite prices hitting a six-month high, indicating a weakening confidence in the market’s ability to sustain prices for longer.

While the market remains on the upswing, buoyed by an improving economy following the reopening of the border with mainland China after the Covid-19 pandemic, there are signs of a potential slowdown, with some homeowners looking to avoid increased competition from developers who are launching new projects , according to analysts.

Homeowners have lowered the asking prices for 1,763 units, representing 7.9 per cent of the total 22,352 units available for sale on the website of Ricacorp Properties, one of the major property agents in the city.

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“Potential buyers may hesitate to enter the market due to price increases in the first three months of the year,” said Raymond Cheng, managing director of CGS-CIMB Securities. But it may not necessarily indicate a long-term downward trend in home prices, according to Cheng.

The Rating and Valuation Department’s home price index for March climbed 1.35 per cent to 351.4, the highest since 360.3 in September. It was the third straight monthly increase, with gains in Hong Kong’s secondary market adding up to about 5 per cent for the year. But the growth slowed compared with February, when the index gained 2.22 per cent, the most in 33 months.

A homeowner at Casa Marina II in Tai Po sold their unit after reducing the asking price by HK$3.8 million (US$484,000), or 17.4 per cent, to HK$18 million, according to data provided by Midland Realty.

The agency’s Midland Confidence Index, which reflects the degree of confidence of owners who have put their homes for sale, has declined for the two consecutive weeks.

As of May 1, the index fell by 2.7 per cent week on week to 61, following a 3.7 per cent decline the previous week.

The index, which is calculated based on the price changes of properties for sale on the Midland website, represented a drop of 5 per cent month on month.

When the index declines, it reflects more price cuts on properties for sale, indicating prices are likely to go down further.

Hong Kong home prices rise for the third straight month, but gains slow in March

The total number of properties changing hands, including residential, commercial and industrial units as well as parking spaces, sank by a third to a three-month low of 5,735 in April, an estimate by Centaline Property Agency revealed on Tuesday. The total value sank 11.1 per cent to HK$61.25 billion (US$7.8 billion).

“It reflects the outbreak of the banking crisis in Europe and the United States during March, the volatility of the global financial market, and the interest rate discussion in the United States,” said Roen Yeung, senior associate director in the research department at Centaline. “The market tended to wait and see, which slowed down local property market transactions.”

Notably, the secondary market saw the number of deals nosedive 38.3 per cent to a three-month low of 2,766 in April, according to Centaline’s estimate, as bargains became rarer and competition from new launches heated up.

Yeung expects the total number of transactions in May to fall again, this time by about 10 per cent because of a lack of big new launches in April. The figure mainly reflects the market conditions in the previous month because of the time needed to register transactions to the Land Registry.

Buggle Lau, chief analyst at Midland Realty, predicts the number will sink 13 per cent to about 5,000 in May.

Joseph Tsang, chairman of JLL’s Hong Kong office, predicted home prices in the city will change direction and eventually could fall more than 5 per cent for the whole of 2023, citing challenging economic fundamentals and global geopolitical tensions.

“I expect residential prices to trend downward as transaction momentum turns slower due to pent-up demand being digested,” said Tsang.

“Even if the interest rate peaks, the current level of more than 5 per cent can negatively affect the willingness to invest in the property market. And the global and China economies remain surrounded by geopolitical tensions.”

In addition, developers have an abundant supply of unsold units , which may force them to undercut one another and speed up sales, said Tsang.

Private housing supply in Hong Kong is likely to hit 107,000 units in the next three to four years, according to an update provided by the Housing Bureau on Friday.

However, Cheng of CGS-CIMB expects home price to rise by an average of 5 per cent as interest rates are likely to peak this year. He also expects housing demand and prices to sustain amid an improving economy in Hong Kong and increased cross border travel.

His views were echoed by Derek Chan, the head of research at Ricacorp Properties, who said the Top Talent Pass Scheme could provide a new source of demand for homes as more people move to Hong Kong.

More from South China Morning Post:

• Hong Kong home prices rise for the third straight month to the highest level since September
• Blocked views, temporary housing threaten Kai Tak’s appeal and home prices as Hong Kong proposes 10,700 new flats
• One of Hong Kong’s priciest homes sells for US$16.6 million loss off of 2019 price, as luxury segment slumps
• Hong Kong home prices fell 15.6 per cent in 2022, ending 13-year rising trend

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