"Luxury Goods? No Thanks": 50 Million Visitors, But Spending Drops 44%... The Fall of Hong Kong's Shopping Paradise

Nearly 49.9 Million Tourists Visited Hong Kong Last Year
Tourist Spending Down 44% Compared to 2018
Share of Shopping in Expenditure Fell from 51% to 36%

While the number of tourists visiting Hong Kong is showing signs of recovery, tourist spending remains significantly below pre-COVID-19 levels due to declining demand for shopping and a rising number of same-day visitors.

According to the South China Morning Post (SCMP) on August 7 (local time), the Hong Kong Legislative Council announced that tourist spending in Hong Kong last year totaled 197.5 billion Hong Kong dollars (about 36 trillion won), a 44% decrease from 353 billion Hong Kong dollars in 2018, before the outbreak of COVID-19.

Hong Kong Temple Street Night Market. Hong Kong Tourism Board

Perry Yiu Pak-leung, a member of the Hong Kong Legislative Council and Chairman of China Travel Service (Hong Kong), analyzed that the decline in tourist spending was influenced by changing travel styles. He explained that while tourists used to focus on shopping in the past, they now prioritize immersive experiences and deeper engagement with local culture during their trips.

Assemblyman Yiu noted that a decrease in tourist spending is a global phenomenon, but high-spending visitors still exist. He emphasized that the key to expanding consumption is how long these tourists can be encouraged to stay in Hong Kong, and whether diverse tourism content can be offered to them.

He stated, "The tourism industry is heavily influenced by external factors such as weather, airfare, and transportation costs." He added, "While these factors are difficult to control, offering more diverse and novel travel experiences, as well as strengthening links and synergy between tourism sectors, is a crucial direction for advancing the industry and increasing both tourist experience and consumption."

The Legislative Council's research also showed a significant narrowing of the gap between the amount tourists spent in Hong Kong and the amount Hong Kong residents spent overseas in recent years. Unlike the decline in tourist spending, the amount spent overseas by Hong Kong residents reached 191.1 billion Hong Kong dollars last year (about 34.6 trillion won), a 10% increase compared to 2018.

The actual number of tourists has nearly returned to pre-pandemic levels. Last year, 49.9 million tourists visited Hong Kong, recovering to about three-quarters of the record 65.1 million visitors in 2018. However, despite the recovery in visitor numbers, total spending and per capita expenditure remain below pre-COVID-19 levels.

Per capita spending by overnight visitors in Hong Kong dropped from 6,614 Hong Kong dollars (about 1.2 million won) in 2018 to 5,503 Hong Kong dollars (about 1 million won) last year. During the same period, per capita spending by same-day visitors fell by more than 48%, from 2,202 Hong Kong dollars (about 400,000 won) to 1,139 Hong Kong dollars (about 210,000 won).

Hong Kong. Hong Kong Tourism Board

The Legislative Council analyzed that the rise in same-day visitors, along with the shift of tourist consumption from shopping to other areas, led to the overall decline in tourism spending. According to data from the Hong Kong Tourism Board, the proportion of shopping in total overnight visitor expenditures dropped from 51% in 2018 to 36% last year. In contrast, the share of spending on food and beverages (excluding hotel costs), as well as tourism and experiential activities, rose from 28% to 37% during the same period.

Hong Kong has long hosted various exhibitions to attract high-spending business travelers. Assemblyman Yiu suggested that going forward, it will be necessary to expand hands-on events targeted at tourists from specific countries and to promote these initiatives aggressively. As an example, he cited the collaboration between the Thai community and the distribution industry in Hong Kong to hold the Songkran festival, Thailand's largest holiday, to attract more tourists from Southeast Asia.

He also saw China’s “240-hour visa-free transit” policy as an opportunity for the Hong Kong tourism industry. The tourism sector reports that since the implementation of this policy, the number of foreign tourists visiting Hong Kong via mainland China has increased. Under China's 240-hour visa-free transit system, citizens of 55 designated countries can enter China through specified ports without a visa and stay for up to 240 hours in designated regions if they are in transit to a third country or region.

Assemblyman Yiu stated, "Many tourists first travel in mainland China, then take the high-speed rail to come to Hong Kong. Strengthening cooperation with mainland cities could help attract tourists for both sides." He further added, "By attracting international tourists and encouraging multi-city travel itineraries, we can boost the number of visitors to Hong Kong."

This content was produced with the assistance of AI translation services.