hong kong tourist industry

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Hong Kong Tourism Market

Hong Kong Tourism Market by Purpose, Booking Channel, Consumer Orientation, Tour Type, Tourism Type, Age Group & Region Forecast to 2022 – 2032

Would Hong Kong's Tourism Sector Revive with the Government's Efforts to Lure Tourists from Japan, Korea, the U.S., Germany, the U.K., and 30+ Countries with Social Media Campaigns and Free Air Tickets?

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Hong Kong Tourism Market Outlook – 2022-2032

The Hong Kong tourism market is estimated to reach US$ 16 Billion in 2022. Sales are expected to increase at a robust 10% CAGR during the forecast period from 2022 to 2032. The market valuation is projected to reach US$ 41.5 Billion by the end of 2032.

Every year, people from all over the world visit Hong Kong, yet the year 2021 saw only about 42,000 tourists. The reason was the risk of coronavirus infection and limitations on overseas travel.

People are starting to return to Hong Kong as the restrictions gradually loosen. As per Discover Hong Kong , nearly 2,692 visitors from January to July 2022 in the country had come from the U.S. and tourists with longer hauls were mainly from the U.S. in the same time period.

Tourists from the U.S. are expected to visit Hong Kong for its cultural diversity and infrastructural aspects. Ten thousand Buddha monastery, museums, and several festivals are the main attractions for tourists coming from the U.S.

Furthermore, Americans are anticipated to spend huge sums on leisure and luxury, and prefer to spend it on unique experiences rather than materialistic objects. These tourists select luxury trips with high-end destinations and accommodations. It would contribute to the country's economic prosperity. These spending habits are the result of a high disposable income and a high standard of life.

Rising number of tourists visiting the country, combined with the country's ever-increasing population, is exacerbating traffic congestion. Tourists are expected to grow in numbers in Hung Hom, Kwa Wan, and other residential districts in the evaluation period. Growing number of shopping malls and local attractions is anticipated to attract tourists to these locations. As a result, in order to spend their leisure time, the local population is looking for destinations in other countries.

Tourists from Hong Kong are visiting European countries, including Switzerland and the United Kingdom. According to a report published by VisitBritain , from 2009 to 2019, visits from Hong Kong to the U.K. surged by 141% in terms of visits and 254% in terms of spending. Increasing number of tourists from Europe is thus expected to be another major factor driving the Hong Kong tourism market.

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2017-2021 Hong Kong Tourism Market Outlook Compared to 2022-2032 Demand Forecast

In the travel industry, Hong Kong is considered to be a special country. According to the World Tourism Organization (UNWTO), Hong Kong ranked tenth in terms of worldwide tourism spending in 2017.

Hong Kong is also one of the world's most congested cities. Furthermore, because domestic tourism is limited, Hong Kong residents typically choose to spend their vacations elsewhere. It would thus push Asia's fourth-highest GDP per capita. Because of Hong Kong's strategic location and first-rate transit system, international travel has become much easier. The remarkable integrated transportation system of Hong Kong makes travel easier than any other country.

The Hong Kong Tourism Board announced a 97.4% reduction in tourist numbers in 2021, as the industry's representatives requested the government to define the parameters for reopening the border with mainland China. As the tourism sector declined, so did the country's foreign exchange reserves, which would negatively impact tourism-related enterprises in the country.

Government and tourism board took collective efforts to accelerate the tourism industry in the next ten years. According to the board's figures, the number of arrivals fell from 3.6 million in 2020 to 91,398 in 2021, and the number of tourists was "near zero".

Comparative Analysis of Adjacent Hong Kong Tourism Markets

Hong Kong Tourism Market:

Hong Kong Outbound Tourism Market:

France Outbound Tourism Market:

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Top Trends Pushing Tourism Businesses in Hong Kong

• “Presence of Various Museums Demonstrating Hong Kong’s Heritage & Culture Would Aid Growth”

Tourist attractions in Hong Kong are the most important drivers of tourism. There are numerous attractions such as lively cities with parks, shopping complexes, market areas, and architecture, which provide visitors with an unforgettable experience.

In addition to modern structures, Hong Kong has natural trails and tracks that provide visitors the sense of natural beauty which would further encourage them to explore other parts of the country. In 2020, over 20,000 individuals visited the Hong Kong Museum of History, Museum of Science, and Museum of Heritage, thus demonstrating the country's interest in its cultural history.

Moreover, Hong Kong has several important destinations associated with Buddhism. The second-largest Buddha statue in Hong Kong, Po Lin Monastery, Man Mo Temple, and Wong Tai Sin Temple, are considered important and have increasingly experienced a surge in terms of tourists over the years. Apart from being popular, these areas also offer insight into the Hong Kong culture, which would attract many foreign tourists and boost the Hong Kong tourism market.

• “Rapid Development of Transportation Facilities in Hong Kong to Bolster Growth”

Infrastructural development in Hong Kong is set to help the tourism industry to prosper in the next ten years. The new infrastructure upgrades are making it easier for businesses, local city folks, and those wishing to reside in Hong Kong to conduct their businesses. This has led to a considerable increase in cultural, eating, and commercial options in West Kowloon Cultural District in recent years, as well as the country’s largest investment in sports infrastructure.

Several infrastructural developments of transport routes have helped the Hong Kong tourism industry to grow at a rapid pace. The third runway of the Hong Kong International Airport is now complete, which will further increase the capacity to handle up to 100 million passengers annually. All these developments are expected to indirectly help the Hong Kong tourism market to grow by surging the number of international visits and foreign exchanges.

What are the Factors Negatively Affecting the Demand for Tourism Services in Hong Kong?

In Hong Kong, there are numerous issues with the air quality. The main sources of air pollution in the country are power plants, motor vehicles, and ships. The Hong Kong government updated its 2025 air quality goals in 2019. Environmental advisory groups have since questioned the ultimate goals of tourism based on the standards of the World Health Organization (WHO).

If Hong Kong citizens are aware of the negative health effects, the city's air quality and pollution levels may serve as motivating factors. These factors have led to the development of several attractions for tourism and received upgrades & improvements. These developments might also attract numerous tourists to such locations. Key tour agencies are likely to provide them with new and upgraded tourist attractions in Hong Kong.

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Category-wise Insights

Tourists from which age group are more likely to travel to hong kong.

“People Belonging to the Age Group of 26-35 Years are Set to Opt for Hong Kong Travel”

Based on age group, the 26-35 years and 46-55 years’ segments are projected to push sales in the Hong Kong tourism market during the forecast period. Millennials usually travel to Hong Kong for leisure and business purposes, whereas a large number of old people are nowadays traveling to the country to visit their friends and families. Youngsters are set to prefer experiences over luxury to create memories, which would thus attract new young tourists in Hong Kong.

Which Tour Type is Highly Preferred by Tourists Visiting Hong Kong?

“Package Tour Agencies to Provide Options to Go to Tourist Spots in Central Hong Kong”

Package tours are the most popular among tourists visiting Hong Kong, with almost 45% bookings are for package tours. Tourists are nowadays becoming more interested in these package offers since travel agencies provide options to go to numerous destinations near Hong Kong.

Travel agencies usually form groups of 10 to 15 people and offer them tours for a few days, which include lodging and one meal each day. These package tours are becoming popular among tourists since they are affordable for both travelers and travel companies.

Which is the Most Preferred Booking Channel?

“Tourists to Prefer Online Booking Platforms to Visit Various Hong Kong Attractions”

By booking channel, online booking is anticipated to generate the largest Hong Kong tourism marker share in the next ten years, with more than 75% of online bookings. An average citizen of Hong Kong spends around 6 hours per day on the internet. Hence, the travel e-commerce segment has grown on a decent scale in recent years. The number of promotional offers and discounts over websites are also encouraging online booking of tours.

Competitive Landscape

Travel agencies all around the globe are using different marketing strategies to attract tourists and help them in creating a memorable & unique tour experience. The Hong Kong Tourism Board is also aiding tourists and tour organizers by providing essential information, including new events, attractions, cruises, and accommodations around the country. All these factors are helping in planning and executing a successful tour.

Several tourism companies are providing package deals with few popular destinations. They are also providing special offers on cruises and festival events that occur once in a year. They are striving to attract more tourists from across the globe by marketing tours on the official websites and social media.

For instance,

• Thrillophilia is offering special Hong Kong tours, which include several key destinations. The company is also providing special family tours with sightseeing at Victoria Peak, Clock Tower, Tsim Sha Tsui Promenade, and Disney Land. These tours are very popular among families planning on international tours.

Scope of the Hong Kong Tourism Market Report

Hong kong tourism market outlook by category, by purpose:, by booking channel:.

• Phone Booking
• Online Booking
• In Person Booking

By Consumer Orientation:

By tour type:.

• Independent Traveler
• Package Traveler

By Tourism Type:

• International

By Age Group:

• 15-25 years
• 26-35 years
• 36-45 years
• 46-55 years
• 56-65 years
• 66-75 years

Frequently Asked Questions

What was the hong kong tourism market value in 2021.

The Hong Kong tourism market reached a valuation of US$ 12.8 Bn in 2021.

What is the predicted growth rate of the Hong Kong tourism market?

The Hong Kong tourism market is anticipated to grow at a 10% CAGR during the forecast period.

Who are the leading players in the Hong Kong tourism market?

Leading players in the Hong Kong tourism market are Expidia, Trip Advisor, Any Tours, Rome 2 Rio, Faces of Hong Kong Ltd., Luxe Travel Hong Kong, Great Ocean Tours and Travel Limited., Cox and Kings, Fortune Package Tour Operator, Thrillophilia, Thomas Cook, Romania Tour Store, Tour My India, Affordable Tours, Tour Radar, Explore, G Adventures, TUI China, and World Expeditions among others.

Which age group is expected to lead the Hong Kong tourism market?

The Hong Kong tourism market is set to be driven by the 26 to 35 years’ segment in the next ten years.

Which is the leading booking channel in the Hong Kong tourism market?

Based on booking channel, the online channel is expected to remain at the forefront in the Hong Kong tourism market during the forecast period.

Table of Content

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Hong kong tourism industry gains momentum amidst challenges, government reveals measures to enhance visitor experience.

17th January 2024 – (Hong Kong) In a recent session of the Legislative Council, the Hon Elizabeth Quat raised concerns about the pace of recovery in visitor arrivals to Hong Kong following the resumption of normal travel between the Mainland and the region in early 2023. Quat highlighted the need to attract more Mainland consumers, explore new visitor markets, and enhance Hong Kong’s capacity to receive tourists. In response, Mr. Kevin Yeung, Secretary for Culture, Sports and Tourism, provided an update on the measures taken by the government to address these issues.

Hong Kong’s tourism industry holds significant importance, contributing around 4.5 per cent to the region’s Gross Domestic Product and providing over 250,000 employment opportunities. Despite the challenges posed by changing visitor patterns and local spending behaviour, the industry has shown resilience. The Hong Kong Tourism Board (HKTB) initially projected 25.8 million visitor arrivals for 2023, but the concerted efforts of the government and the travel trade resulted in a remarkable 34 million arrivals last year, surpassing expectations.

In response to the first question regarding the Individual Visit Scheme (IVS), which allows Mainland visitors to travel to Hong Kong, Yeung highlighted that the IVS currently covers 49 designated Mainland cities. In 2023, the IVS accounted for 60 per cent of total Mainland visitors, indicating its effectiveness in attracting visitors. The government intends to maintain communication with relevant Mainland authorities to explore ways to enhance the scheme and adjust duty-free shopping allowances, aiming to provide Mainland visitors with more convenient and flexible travel options and enrich their overall experience.

Expanding visitor sources is a key strategy for Hong Kong’s tourism development. The government has been actively promoting Hong Kong as a desirable destination for visitors from the Association of Southeast Asian Nations (ASEAN) and Middle East countries. Efforts include collaborations with airlines, key opinion leaders, and the travel trade to attract visitors from these regions. Notably, HKTB organized familiarization trips for trade representatives from ASEAN countries, aimed at showcasing new tourism products and creating awareness. The number of visitors from ASEAN member states has already recovered to 73 per cent of the average in 2017 and 2018, with notable growth from the Philippines and Thailand.

In addition to diversifying visitor sources, the government recognizes the need to enhance Hong Kong’s capacity to receive tourists. Several initiatives have been undertaken, including the development of new facilities at popular attractions such as Hong Kong Disneyland Resort, Ocean Park, and Ngong Ping 360. Cultural spots like the Hong Kong Palace Museum, M+, and the Hong Kong Museum of Art have also been built or renovated to further engage visitors. The number of hotel rooms has increased by 8 per cent compared to 2018, offering over 100,000 rooms to accommodate visitors. The average length of stay for overnight visitors has also increased, reaching 3.5 nights in the third quarter of 2023.

To ensure a high-quality visitor experience, HKTB has established the “Professional Quality Tourism Services Pledge” and implemented the “Quality Tourism Services Scheme.” These initiatives aim to enhance service quality and hospitality by recognizing outstanding merchants and frontline staff, providing training videos, and organizing promotional activities. By fostering a culture of excellence in customer service, Hong Kong aims to consolidate its position as an international tourist destination.

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Pursuing value-driven growth in hong kong’s tourism industry.

Veteran hotelier calls for city to go the extra mile to regain its tourism crown by focusing on quality, creating values and building a high culture of its own. Jessica Chen reports from Hong Kong.

Leadership is about love and vision, especially in challenging times. When Giovanni Angelini, former CEO of Shangri-La Hotels and Resorts, walked through the lobby of the Island Shangri-La Hotel at Admiralty, Hong Kong Island, to meet his friends at the coffee bar, he was greeted along the way by the hotel staff’s beaming smiles and “welcome backs”. They greeted their former boss with sincerity and reverence although he had not been at the helm for some 13 years.

Angelini, a charismatic mentor-like leader known as the “people’s hotelier”, has gained fans and followers in many countries during his 50 long years of serving in the “industry of people”. Involved in the opening of 75 new hotels in 15 different cities, he won the “Corporate Hotelier of the World” award in 2006. Now, with an unrelenting passion for success and an unyielding pursuit of excellence, he envisions Hong Kong — the place he loves most — “reclaiming its tourism crown” by focusing on quality rather than quantity, and value creation instead of vicious competition.

Hong Kong should focus on and invest in two potential sources of quality visitors who are willing to purchase high quality services at a high price. Giovanni Angelini , Ex-CEO, Shangri-La Hotels and Resorts

In recent years, as the media narratives and rhetoric about the special administrative region have become bitter and often sarcastic, the local business confidence index had fluctuated between -37 in 2020 and 15 in June this year, according to Treading Economics — the economic sentiment indicator for Euro Asia. But the wise, like Angelini, observe the city through the firsthand experience and value fact over fiction. They stick to the truth rather than hearsay, to the potential rather than the ideological stereotypes ingrained in the hostile Western media. The veteran hotelier believes Hong Kong has everything it needs to regain its competitiveness and reassert its dominance in many sectors, including, but not limited to, the tourism industry — saying the city should be value-driven.

From mass tourism to quality tourism

Early last month, Angelini explained the driving force of vision and culture-building in the tourism and hospitality sectors at China Daily Hong Kong Edition’s Mastermind Roundtable. “Culture is very important that comes to the top,” he said.

With the hospitality industry still struggling to regain its footing after the devastation wrought by the pandemic, Hong Kong is yearning for a growing number of visitors to boost its morale. Angelini, however, suggested a paradigm shift — from mass tourism to quality tourism, from complacency with the growing numbers of visitors, to providing exclusive and enriching experiences for individual tourists. He said it’s time for the city of trade and commerce to build a high culture of its own, capitalizing on its world-class facilities, unique geographic location, and its high-caliber professionals who are always striving to go higher and for the better.

“Hong Kong should focus on and invest in two potential sources of quality visitors who are willing to purchase high quality services at a high price,” said Angelini, the Asia-Pacific “Hotelier of the Year 2005”.

The first source is hosting international conventions and conferences. “Quality visitors” refers to the world’s best professionals who are willing to spend a lot to attend top-class conferences that have far-reaching or groundbreaking consequences. “It’s not just about the price. It’s about people’s experiences and values,” he said.

The summit-like conventions are no easy feat — they can take five to six years to prepare, and the services are expected to be creative and impeccable down to the last detail. But the returns are enormous, both financially and socially, especially in terms of image-building for the city.

READ MORE :  HK sees accelerated recovery in tourism

“The second source, the other low-hanging fruit, is to make the city home to year-round musical or theatrical performances and high-culture events, as well as sports games, including, but not limited to, sailing and golf.

“As for golf, this is a sport that brings quality and nonprice sensitive tourists and visitors to most destinations around the world,” said Angelini, who is also an adjunct associate professor of the School of Hotel and Tourism Management at the Chinese University of Hong Kong.

“For Hong Kong to reduce the number of courses presently available, it does not help tourism at all,” he added.

Pre-pandemic statistics provide an informative reference. It’s worth noting that while the number of inbound tourists had increased steadily from 2003 to 2018, tourism revenues peaked in 2014 and then declined steadily afterwards. The decline began in 2014, with individual expenditures dropping to their lowest point in 2019. In other words, even in the heyday of the pre-pandemic period, the tourism industry found it necessary to generate more revenue as its profitability was falling despite the increase in inbound visitors.

According to Macrotrends — a leading research platform for long-term investors — the amount that international visitors spent in Hong Kong fell sharply from 2015 to 2019. Statistics show that average expenditure peaked at $942 per person in 1995. But, by 2019, the figure had plunged to $585, even while the number of visitors had quintupled, according to the World Trade Organization.

Although mass tourism has not served Hong Kong as well as expected, the SAR government continues to focus on the number of visitors rather than their expenditures in the city. Meanwhile, the number of wealthy families has increased substantially in the post-pandemic era. Hong Kong is considered a hub for private wealth management. In March, the city topped other Asian cities and ranked third in the world in terms of its population of ultra-wealthy individuals, estimated to number 15,175, according to Altrata’s latest report.

Angelini is right — Hong Kong has to regain its past glory and its crown in the world tourism business. Hong Kong must move its paradigm up to match its top-notch tourism resources, both in terms of hardware and software, to unleash the city’s huge potential in its capital, uniqueness, resilience, passion and professionalism.

Well positioned for success

As promising as it looks, a long-term strategy to develop “quality tourism” has yet to be placed on the government's top agenda. The Hong Kong Tourism Board focuses on the number of inbound visitors rather than on tapping the potential high-end market. The numbers-driven statistics are not sufficient to reflect the people-centered industry, where experiences, not cheap prices, are most relevant to tourists’ decision-making. To map out Hong Kong’s future, the wisdom of the city’s expatriates is a valuable resource that the government cannot afford to lose.

Angelini’s care for people and his vision for legends do not come from nowhere. Born in post-war Italy, Angelini spent his early years in the country much like the protagonist in the biographical drama film Lamborghini: The Man Behind the Legend. His career experience resembles that of Ferruccio Lamborghini’s — from a humble start as the son of a hardworking and self-disciplined farmer to reaching the pinnacle of the business world, who is loved and respected by thousands of followers.

READ MORE : HK sees over 10m visitors from Jan to May

In his book, Winning Hospitality, he recalls his humble beginnings as a bellboy working a 15-hour day earning barely enough to make ends meet. After 20 years serving Shangri-La Hotels & Resorts and 10 years as its CEO, at the top of the industry's corporate ladder, he ventured out in 2009 to start his own consulting firm under his name.

Moving and relocating a dozen times to take advantage of new career opportunities takes guts and grit, a trait the Angelinis have never lacked. In the early 1990s, the family finally settled in Hong Kong — a safe and charming city that embodies the beauty of both East and West — because the city's vibrancy and its productivity inspired them the most; the “crown of the hospitality industry, with high standards resulting in high performance and returns”, recalled Angelini of the “good old days”. 

“Past glories, however, cannot be relied upon,” wrote Angelini in his column in a local newspaper. “Hong Kong must adapt now to regain its dominant position in the market.” Believe it or not, his biggest takeaway from the city's short but resilient history is that it is never wise to “bet against Hong Kong”. Angelini and the city's best minds have positioned themselves to embrace both the challenges and the opportunities to make new history. 

Contact the writer at [email protected]

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Explainer: Hong Kong’s tourism sector faces long road to recovery despite easing of Covid curbs

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Prior to the Covid-19 pandemic, Lunar New Year was a busy period for Hong Kong’s tourism industry, when visitors from mainland China would take advantage of the long break to travel to the city.

Scenes of busy border control points have been absent for the past three years as Hong Kong remained largely isolated under strict anti-epidemic rules. With many of those restrictions recently relaxed , 2023 could mark a year of recovery for the city’s tourism industry, and on numerous occasions, Chief Executive John Lee has heralded Hong Kong’s return to the international stage.

Two weeks after quarantine-free travel was resumed between Hong Kong and mainland China , HKFP examines the current state of the city’s tourism sector with its pre-pandemic position.

Crippled pillar of economy

Since 2002, tourism has been identified as one of Hong Kong’s four “pillar industries,” which have served as the driving forces behind the city’s economic growth.

In 2018, official data showed visitor-related economic activities contributed to 3.6 per cent of the city’s gross domestic product (GDP), creating jobs for over 225,000 Hongkongers.

But that pillar has been almost entirely dismantled by the Covid-19 pandemic and three years of crippling restrictions on visitors .

In 2020, the year the coronavirus swept across the world and disrupted global traffic, the inbound tourism trade contributed just 0.2 per cent of Hong Kong’s GDP. The following year, it only accounted for 0.05 per cent of GDP.

After accounting for inflation, official data showed the economic input from inbound arrivals stood at HK$3.89 billion in third quarter of 2022, 95 per cent less than the HK$76.7 billion made during the first quarter of 2019.

The Executive Director of the Travel Industry Council of Hong Kong Fanny Yeung told reporters on Thursday that the sector had lost an estimated 50 per cent of manpower when compared with pre-pandemic levels.

Data from the Census and Statistics Department painted an even grimmer picture, estimating that the number of people working in inbound tourism was only 3,100 in 2021 – less than 1.4 per cent of the 2018 amount.

Since the onset of the Covid-19 pandemic, visitors have become rare sightings in Hong Kong.

While the number of overseas visitors has grown since authorities scrapped quarantine for international arrivals last September , it remains at a fraction of pre-Covid levels.

Last November, Hong Kong received 55,000 visitors from places other than mainland China, less than one-10th of the amount who came in November 2019, when the city was in the grip of protests and unrest.

Fall in mainland visitors

The number of mainland Chinese visitors, who have been the city’s largest source market since 1994, also plummeted over the past three years.

While quarantine-free travel between mainland China and Hong Kong resumed on January 8 , and high-speed rail services restarted a week after , there are quotas in place to limit the number of cross-border travellers per day.

The number of mainland Chinese arrivals, however, has not yet come close to the initial daily quota of 50,000 through Hong Kong’s land ports in the first two weeks since normal travel resumed.

On Friday – two days ahead of the Lunar New Year – Hong Kong received 14,892 mainland visitors. That was three times the number that came on January 8, but 8.3 per cent of the daily average in January 2019.

About 70 per cent of Hong Kong arrivals since January 8 have been Hong Kong residents.

When HKFP asked Yeung of the Travel Industry Council about the lukewarm response among mainland Chinese visitors, Yeung said it was “something that they expect in the initial stage.”

She said that news of border reopening came in short notice before the Lunar New Year. “Mainland residents always plan their Chinese New Year holiday well in advance,” she said, adding that they would still have to apply for visas.

“We will estimate… maybe starting from mid-February, visitors from mainland [China] will be gradually increasing,” Yeung added.

Yeung said she did not think Hong Kong had lost its appeal to its main source of visitors, as attractions that had opened during Covid times would be a breath of fresh air for those who have not set foot in the city for three years.

Long road ahead

But at the same time, Yeung told HKFP she did not think her industry was in recovery yet. “Inbound visitors are less than one per cent of the pre-pandemic time,” she added.

The Travel Industry Council is currently fighting for government subsidies to revive the sector.

Its chairperson Gianna Hsu said in a Thursday press meeting that many of the 1,600 travel agencies in the city had shrunk to survive the tourist drought, with some left with just one desk.

In order to resume operation, these companies need funds to rehire staff, rent proper offices, purchase business necessities and promote their services across the world – Yeung estimated that they would need a total of HK$100 million from the government.

“If we don’t have this subsidy, frankly, we don’t know if we can really revive or not,” she said.

Even with government help, Yeung said the rebound of Hong Kong’s travel industry will still take time.

“We would still expect a long road for tourism to recover, maybe towards the middle of next year? I think that is the timeframe we are looking for.”

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Hong Kong’s Tourism Triumph: A Resilient Journey Towards a Prosperous 2024

By Noah Huo

February 01, 2024

According to the data from the Hong Kong Tourism Board published on 13th Jan, Hong Kong’s tourism industry experienced a significant upturn in 2023, welcoming approximately 34 million visitors. This surge underscores the city’s enduring popularity as a major tourist destination and highlights its strategic position in the global tourism landscape.

Hong Kong Tourism Surges in 2023 with Record Number of Visitors from PartnerNet . Retrieved from:   https://partnernet.hktb.com/en/research_statistics/index.html 

Monthly Breakdown of Tourist Arrivals in 2023 and Consolidated Growth Trend from PartnerNet . Retrieved from https://partnernet.hktb.com/en/research_statistics/tourism_statistics_database/index.html

In the face of lingering global pandemic uncertainties, Hong Kong successfully drew a vast number of visitors, thanks to its rich cultural landscape and diverse tourism offerings. Mainland China remained a key contributor, forming the largest segment of tourists and reinforcing the effectiveness of the Hong Kong Tourism Board’s targeted promotional strategies in the region.

Provisional visitor arrivals in December 2023 and whole-year arrivals from Hong Kong Tourism Board . Retrieved from https://www.discoverhongkong.com/content/dam/dhk/intl/corporate/newsroom/press-release/hktb/2024/01-2023-Full-Year-Arrivals-E.pdf

The upward trajectory of Hong Kong’s tourism sector, evident since early 2022, coincides with global vaccination efforts and easing travel restrictions. The rebound in Mainland tourists has been pivotal, marking a critical phase in the sector’s recovery from pandemic-related downturns.

Photographic depictions of bustling markets and vibrant street food stalls, teeming with tourists, visually narrate the city’s resilience and revitalization. These images capture the essence of Hong Kong’s diverse attractions – from its dynamic urban centres to its iconic modes of transport and picturesque vistas – all drawing international interest.

Bustling Night Market in Hong Kong Captures the Vibrant Hustle and Bustle. Photo: Noah Huo / Shroffed.

This revival is more than a mere economic rebound; it reflects Hong Kong’s lasting allure as a top-tier global destination. The city’s fusion of traditional charm with modern conveniences remains a key factor in attracting tourists, setting a positive tone for the future of its tourism industry.

Marvin, a visitor from Australia, shares his impressions in a reflective tone:

“Hong Kong has profoundly impacted me. Beyond the magnificent skyscrapers and advanced urban amenities, it’s the rich historical and cultural heritage that truly captivates,” – Marvin, visitor from Australia. 

Marvin continues, “The seamless blend of modernity with tradition here is remarkable. Whether it’s exploring the vibrant city centre or delving into ancient temples and cultural sites, the city’s unique allure is palpable.”

He concludes by emphasizing the broader significance of his experience: “This diversity not only underscores Hong Kong’s global stature but also enriches the travel experience for visitors like me.”

In addition to the perspectives of international visitors, local business owners also reflect on the impact of this tourism resurgence. 

“The increase in tourists has breathed new life into our business. After a challenging period during the pandemic, we’re seeing a significant uplift in sales. Tourists, especially those from Mainland China, show a keen interest in authentic Hong Kong crafts,” – John Zhang, owner of a popular souvenir shop in Tsim Sha Tsui. 

He adds, “The revival of tourism isn’t just about numbers; it’s about the vibrant atmosphere and cultural exchange it brings to our city. We’re excited for what the future holds and are preparing new products to cater to the diverse tastes of our visitors.”

Looking ahead to 2024, optimism prevails for Hong Kong’s tourism sector. With continued efforts to manage the pandemic globally and the anticipated revival of international travel, Hong Kong is poised to further solidify its status as a leading financial hub and cultural exchange centre. The government and tourism board are committed to nurturing this growth, offering an expansive range of high-quality services and experiences to meet the evolving demands of a diverse tourist demographic.

Hong Kong’s tourism future shines brightly, promising novel experiences and sustained growth in the years ahead.

Reported by Noah Huo

Edited by Katie Tse and George Clark

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Follow our news, recent searches, hong kong february retail sales rise 1.9% as tourism extends recovery, advertisement.

Mainland Chinese travellers on low-cost tours walk to a tourist bus after lunch at To Kwa Wan in Hong Kong, China March 30, 2023. REUTERS/Tyrone Siu/File Photo

HONG KONG: Hong Kong's retail sales rose for the 15th straight month in February boosted by continuing growth in tourism and consumption, official data showed on Wednesday (Apr 3).

Sales in February rose 1.9 per cent from a year earlier to HK$33.8 billion (US$4.32 billion), the Hong Kong government said. That compared with 0.9 per cent growth in January, 7.8 per cent rise in December and 15.9 per cent jump in November.

"As handling capacity continues to recover and more mega events are staged, inbound tourism is expected to revive further and benefit the retail sector," a government spokesman said.

The government's initiatives in boosting consumption sentiment should also provide support, the spokesman added.

In terms of volume, retail sales increased 0.5 per cent in February. That compared with January's 1.2 per cent fall, the first decline in volume terms since December 2022, when it slipped 0.6 per cent. It grew 4.8 per cent in December 2023 and was up 12.4 per cent in November.

Hong Kong's economy is expected to grow 2.5 per cent to 3.5 per cent this year after expanding 3.2 per cent in 2023 as the city struggles to revive its economy following the COVID-19 pandemic while battling mounting deficits and economic headwinds.

The government plans to roll out support measures of more than HK$1 billion (US$127 million) for the beleaguered tourism industry, staging more than 80 "mega-events" such as fireworks and drone shows in the year's first half to lure visitors.

Chinese cities of Xian and Qingdao also joined a travel scheme allowing residents to make personal visits to Hong Kong, rather than in tour groups. The scheme took effect from March 6, taking to 51 the total of Chinese cities whose residents are eligible to apply for individual travel.

February visitor arrivals stood at 4.0 million, data from the Hong Kong Tourism Board showed. That compared with 3.83 million in January and 1.46 million in February 2023.

The number of mainland Chinese visitors rose to 3.25 million in February from January's 2.98 million, December's 2.94 million and 1.11 million in February 2023.

Sales of jewellery, watches, clocks and valuable gifts, bought mostly by mainland tourists before the pandemic, fell 3.6 per cent in February on year after 22.8 per cent growth in January, data showed.

Sales of clothing, footwear and accessories grew 12.3 per cent in February after an increase of 2.7 per cent in January.

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Hong Kong Feb retail sales rise 1.9% as tourism extends recovery

• Feb tourist arrivals up 173.7% y/y vs Jan's 667.1% rise y/y
• Feb jewellery sales down 3.6% y/y vs Jan's 22.8% growth
• Govt: revival in inbound tourism, big events to support retail

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Reporting by Donny Kwok; Editing by Jacqueline Wong

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Canada's economy unexpectedly shed a net 2,200 jobs in March, largely in the services sector, while the jobless rate increased to a new 26-month high of 6.1%, data showed on Friday.

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Hong Kong Feb Retail Sales Rise 1.9% as Tourism Extends Recovery

Mainland Chinese travellers on low-cost tours walk to a tourist bus after lunch at To Kwa Wan in Hong Kong, China March 30, 2023. REUTERS/Tyrone Siu/File Photo

HONG KONG (Reuters) -Hong Kong's retail sales rose for the 15th straight month in February boosted by continuing growth in tourism and consumption, official data showed on Wednesday.

Sales in February rose 1.9% from a year earlier to HK$33.8 billion ($4.32 billion), the Hong Kong government said. That compared with 0.9% growth in January, 7.8% rise in December and 15.9% jump in November.

"As handling capacity continues to recover and more mega events are staged, inbound tourism is expected to revive further and benefit the retail sector," a government spokesman said.

The government's initiatives in boosting consumption sentiment should also provide support, the spokesman added.

In terms of volume, retail sales increased 0.5% in February. That compared with January's 1.2% fall, the first decline in volume terms since December 2022, when it slipped 0.6%. It grew 4.8% in December 2023 and was up 12.4% in November.

Hong Kong's economy is expected to grow 2.5% to 3.5% this year after expanding 3.2% in 2023 as the city struggles to revive its economy following the COVID-19 pandemic while battling mounting deficits and economic headwinds.

The government plans to roll out support measures of more than HK$1 billion ($127 million) for the beleaguered tourism industry, staging more than 80 "mega events" such as fireworks and drone shows in the year's first half to lure visitors.

Chinese cities of Xian and Qingdao also joined a travel scheme allowing residents to make personal visits to Hong Kong, rather than in tour groups. The scheme took effect from March 6, taking to 51 the total of Chinese cities whose residents are eligible to apply for individual travel.

February visitor arrivals stood at 4.0 million, data from the Hong Kong Tourism Board showed. That compared with 3.83 million in January and 1.46 million in February 2023.

The number of mainland Chinese visitors rose to 3.25 million in February from January's 2.98 million, December's 2.94 million and 1.11 million in February 2023.

Sales of jewellery, watches, clocks and valuable gifts, bought mostly by mainland tourists before the pandemic, fell 3.6% in February on year after 22.8% growth in January, data showed.

Sales of clothing, footwear and accessories grew 12.3% in February after an increase of 2.7% in January.

($1 = 7.8286 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Jacqueline Wong)

Copyright 2024 Thomson Reuters .

Tags: diseases , infectious diseases , Hong Kong

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Hong Kong Feb retail sales rise 1.9% as tourism extends recovery

H ONG KONG (Reuters) -Hong Kong's retail sales rose for the 15th straight month in February boosted by continuing growth in tourism and consumption, official data showed on Wednesday.

Sales in February rose 1.9% from a year earlier to HK$33.8 billion ($4.32 billion), the Hong Kong government said. That compared with 0.9% growth in January, 7.8% rise in December and 15.9% jump in November.

"As handling capacity continues to recover and more mega events are staged, inbound tourism is expected to revive further and benefit the retail sector," a government spokesman said.

The government's initiatives in boosting consumption sentiment should also provide support, the spokesman added.

In terms of volume, retail sales increased 0.5% in February. That compared with January's 1.2% fall, the first decline in volume terms since December 2022, when it slipped 0.6%. It grew 4.8% in December 2023 and was up 12.4% in November.

Hong Kong's economy is expected to grow 2.5% to 3.5% this year after expanding 3.2% in 2023 as the city struggles to revive its economy following the COVID-19 pandemic while battling mounting deficits and economic headwinds.

The government plans to roll out support measures of more than HK$1 billion ($127 million) for the beleaguered tourism industry, staging more than 80 "mega events" such as fireworks and drone shows in the year's first half to lure visitors.

Chinese cities of Xian and Qingdao also joined a travel scheme allowing residents to make personal visits to Hong Kong, rather than in tour groups. The scheme took effect from March 6, taking to 51 the total of Chinese cities whose residents are eligible to apply for individual travel.

February visitor arrivals stood at 4.0 million, data from the Hong Kong Tourism Board showed. That compared with 3.83 million in January and 1.46 million in February 2023.

The number of mainland Chinese visitors rose to 3.25 million in February from January's 2.98 million, December's 2.94 million and 1.11 million in February 2023.

Sales of jewellery, watches, clocks and valuable gifts, bought mostly by mainland tourists before the pandemic, fell 3.6% in February on year after 22.8% growth in January, data showed.

Sales of clothing, footwear and accessories grew 12.3% in February after an increase of 2.7% in January.

($1 = 7.8286 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Jacqueline Wong)

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Shangri-la Finds New Life In Tourism Industry Rebound

Key takeaways:.

• Shangri-la earned a profit of $184 million last year and distributed a dividend of HK$0.15 per share to celebrate its return to the black after three years of losses
• The Hong Kong-listed hotel operator expects its next growth driver to come from a pickup in Chinese traveling abroad

By Lau Chi Hang

As the global economy stumbles its way back to post-pandemic health, tourism stands out as a surprising bright spot that has rebounded much more strongly. High-end hotel operator  Shangri-la Asia Ltd.  (0069.HK) has benefited from that rebound, impressing investors with a strong performance last year that included  a return to the black  after three years of losses. 

The Shangri-la brand takes its name from the fictional Never-never land of Shangri-la created by British author James Hilton in his novel “Lost Horizon” in the 1930s. Cut off from the rest the world, the place’s inhabitants live in a sort of paradise similar to the wonderland in the Chinese classic “Peach Blossom Spring” by poet Tao Yuanming. 

Exactly how this idyllic name ended up on a hotel chain is yet another story.

In 1971, when legendary Asian sugar king Robert Kuok of Malaysia was planning to establish a top-tier hotel brand in Singapore, he told his French friends and raised the subject of a name with them. One responded dismissively with the word “idiot” and threw out the name Shangri-la as well. And thus a name was born.

CFO revolving door 

The rest of the company’s history is familiar to people in the region. Shangri-la soon became a world-renowned hotel group and carved out a comfortable spot for itself at the higher end of the market until 2019 when the pandemic broke out. It went on to lose money for three consecutive years. It also suffered from management turbulence during that time, with three CFOs coming and going, leaving many outsiders scratching their heads. 

Just when investors were losing their patience, the company received a lifeline with the unexpectedly strong tourism recovery as people spent lavishly on “revenge travel” after three years of staying close to home. As that happened, Shangri-la’s revenue rose 46.5% last year to $2.14 billion. It also celebrated a return to the black with a profit of $184 million, reversing losses of $46 million in 2020, $29 million in 2021 and $159 million in 2022. With money to spare, the company also resumed returning some of its profits to shareholders with an end-of-the-year dividend of HK $0.15 per share.

The company’s main businesses include hotel management and property investment. Besides Shangri-La, its other chains include Kerry, JEN and Traders Hotel, and it has a total of 103 hotels with 41,800 rooms. It owns 83 of those properties and provides management services for the rest. It also has a portfolio of 2.43 million square meters of offices, commercial properties and serviced apartments.

Revenue from its hotel business rose 49.3% last year to $2.03 billion, while its investment property revenue rose by a slower 8.6% to $108 million.

Cost cutting without layoffs

Improvement in the broader travel market was the main driver behind Shangri-la’s new lease on life. According to the World Tourism Barometer published by the United Nations Tourism Organization, international tourism recovered to 88% of pre-pandemic levels in 2023, with 1.3 billion trips made by international tourists who spent an estimated $1.4 trillion, 93% of levels from 2019.

It was little surprise that Shangri-la, whose hotels are concentrated in popular international travel destinations, benefited from the trend. The company said surging demand for hotel rooms on the Chinese Mainland and in Hong Kong, combined with growing demand for travel worldwide, turbocharged its global business.

The company should also be commended for making its own strategic recalibration during the pandemic. It took advantage of slow days to cut costs and increase efficiency. And while many companies laid off staff to trim costs during the pandemic, only to find themselves short-handed afterwards, Shangri-la tried its best to retain front-line workers. That left it with enough skilled staff to quickly ramp back up without having to hire and train new workers as the industry bounced back. 

But some also believe the strong rebound in the hospitality and tourism industries was already a forgone conclusion, and that Shangri-la’s post-pandemic bounce-back was equally driven by the low base for its performance in 2022. With much stronger numbers for 2023, its ability to sustain the rapid growth into 2024 could be much harder.

Room for occupancy improvement 

To answer that question, we should look at the company’s occupancy rates, which will be a major factor affecting its outlook. Last year, its average occupancy rate was 62%, a relatively low figure but still up 20 percentage points from 42% in 2022. Meanwhile, its revenue per available room or revpar, a widely watched industry metric, rose by 69% to $108. That means there’s room for the occupancy rate to go up further if the rebound continues. 

Market projections show the tourism industry’s outlook remains rosy. The United Nations Tourism Organization’s latest travel confidence index survey found that 67% of respondents believe the outlook will be better or much better this year than in 2023. Shangri-la also estimates that as international travelers return to China, and with more favorable policies and promotions from countries like Singapore, Malaysia and Thailand for outbound Chinese travelers, international travel could become the next catalyst for its business. 

Despite its business rebound, Shangri-la’s valuation is still relatively low with a price-to-earnings (P/E) ratio of around 12 times. That’s well behind the 66 times for  Hong Kong and Shanghai Hotels Ltd.  (0045.HK) and 21 times for  H Word Group Ltd. HTHT . In net asset terms, Shangri-la’s hotels and properties were valued at nearly $11 billion at the end of last year, with a net asset value of $1.47 per share, representing a 57% discount to the stock’s closing price of HK$4.90 last Thursday.

In a nutshell, Shangri-la is a company with solid fundamentals and business prospects. But local equity investors aren’t so interested in hotel stocks, which may explain the drop in its share price after its latest annual results announcement. Such solid stocks could continue to suffer with the slump in Hong Kong’s stock market, compounded by China’s economic slowdown and growing China-U.S. tensions. That means that companies like Shangri-la are hardly guaranteed of being rewarded for their improving performance. 

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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