The “Pearl of the Orient” is slowly but surely regaining its lustre as a top-of-mind tourist destination. Following serious pandemic-related disruptions that lasted more than three years, visitor numbers to Hong Kong have been rising since the city reopened to the world in January. In the first eight months of 2023, the city welcomed over 20 million visitors, according to the Hong Kong Tourism Board (HKTB).
While the rebound in the first half of the year was not as speedy or strong as expected, the economy continued to recover in Q2, led by inbound tourism and private consumption. In August, Hong Kong welcomed over 4 million visitors – up 14% from the previous month, and 84% of pre-pandemic levels.
Dane Cheng, Executive Director of HKTB, said the overall forecast for the tourism sector, one of the city’s four pillar industries, was stable and gradual recovery.
“We are optimistic that arrival numbers could reach 30 million for the full year 2023,” said Cheng, adding that data shows overnight visitors made up 50% of incoming tourists – higher than pre-pandemic levels – with the average length of stay similar to pre-pandemic levels at 3.3 nights. “Visitor numbers from Southeast Asia to Hong Kong also recovered the fastest this year, with arrivals from the Philippines and Thailand each reaching more than 90% of pre-pandemic levels.”
The growing influx of visitors has also served to boost consumption. Nikki Ng, Chairman of the Chamber’s Retail and Tourism Committee, pointed out that during the first half of the year, retail sales went up 20% to a total of HK$205 billion from last year, marking the recovery of the retail market too.
Tourism authorities are also pulling out the stops overseas to promote Hong Kong as a hotspot with something for everyone. Kevin Yeung, Secretary for Culture, Sports and Tourism, said at this juncture, with tourist traffic increasing post-pandemic, immersive and in-depth travel has become a global trend in tourism and Hong Kong stands to gain from such a trend.
“With the mission to promote Hong Kong as a tourism destination to people around the world, I have just visited Bangkok and shared views with Bangkok tourism officials in exploring opportunities for collaboration,” said Yeung. “Regarding the Greater Bay Area, I have visited more than half of the nine cities in the Mainland to promote multi-destination tourism within the area.”
Road to Recovery
Looking ahead, Cheng said the pace of recovery in the future would be affected by different factors, including the global economy and air capacity.
The aviation sector is forecast to recover by the end of 2024, earlier than expected, but labour shortages still persist. Passenger throughput at Hong Kong International Airport in August was 66.7% compared with the same month in 2019.
“While the aviation market has generally recovered in different parts of the world, it must be recognized that the downsizing of the aviation industry or closure of some airlines have far-reaching consequences,” said Stanley Hui, CEO of Greater Bay Airlines. “It is not exaggerating to say that those in the workforce laid off [during the pandemic] do not want to return to work in the industry.”
He also welcomed the Government’s Labour Importation Scheme announced earlier this year, which he hoped would add to the recovery of the sector and ensure that no airline wishing to resume services to Hong Kong would be turned away because of the lack of manpower.
“In the case of Hong Kong, foreign pilots who were laid off during that time have gone back to their homeland and have settled down with other jobs,” Hui explained. “Attracting them to return to work in Hong Kong is a major challenge. Bringing aircraft from long-term parking in deserts is also a long process that will take time. Also, there are new geopolitical developments in other parts of the world that have impacted the recovery of the economy generally.”
Hong Kong is also grappling with the trend of residents heading out of the city for long weekends. The number of people exiting during the Mid-Autumn Festival and National Day holidays was higher than that of incoming visitors: 1.39 million left as compared with 1.19 million arrivals. During a briefing last month, Chief Executive John Lee said Hong Kong would have to “face the trend” of residents leaving the city in droves during long breaks, which was a “reminder to strengthen tourism efforts.”
At the recently concluded Belt and Road Forum for International Cooperation in Beijing, Lee took the opportunity to invite world leaders to Hong Kong to witness its “strong” tourism recovery. In his speech, he reiterated that Hong Kong is “a free and open city well-positioned to foster people-to-people exchanges under the Belt and Road Initiative.”
The tourism industry also got special mention during the Policy Address 2023-24. A refined blueprint 2.0, due to be announced in 2024, will include the development of various travel products, including night and traditional culture tours. A strategy to boost cruise tourism will also be announced next year.
Boosting Nightlife
To reinvigorate the tourism sector, the authorities are spearheading a number of strategic campaigns with a focus on the night economy – activities held daily between 6pm and 6am, from shopping and dining to films and concerts.
In September, the Government launched “Night Vibes Hong Kong,” a series of events targeted at reversing local consumer habits – especially the post-pandemic trend of spending and dining earlier – and getting residents to stay out longer.
The campaign comprises three stages: the Mid-Autumn Festival at the end of September, Christmas, and Lunar New Year in February 2024. According to Government data, during the Mid-Autumn Festival and the National Day holidays nearly 100,000 people attended the raft of evening activities at the three harbourfront spots – Wan Chai, Kwun Tong and Kennedy Town – recording a fivefold increase in stall earnings.
The campaign also included the 1 October National Day fireworks display, and the Wine and Dine Festival in late October. From November, visitors to Hong Kong will receive free dining vouchers worth HK$100 for use at designated bars and restaurants, in a HK$100 million scheme.
Heiyan Song, Associate Dean and Chair Professor, Mr and Mrs Chan Chak Fu Professor in International Tourism, Hong Kong Polytech University, underlined the importance of a thriving after-dark economy for the tourism sector. “Having a night economy is an important element of the overall experience of a city, especially for overnight tourists, which will certainly generate additional income for the local economy,” said Song. However, he warned that when it came to residents, Hong Kong had competition from neighbouring cities such as Shenzhen and Guangzhou, which offer cost advantages.
Ng agreed that consumer behaviour has changed significantly due to a range of factors, including the Covid-19 outbreak, Hong Kong’s ageing population, and the attractiveness of neighbouring cities in the GBA.
“As such, reinvigorating the night economy is the right step to encourage residents and visitors to stay out longer and spend more,” she said. “In the long run, a holistic strategy is needed for the night economy campaign to stimulate daytime spending and boost Hong Kong’s attractiveness as a tourist hotspot.”
Riding the Rebound Wave
Meanwhile, companies like Ocean Park Corporation are seizing the opportunities brought by tourism recovery to stay ahead of the competition.
“During the pandemic, we challenged ourselves to be agile and creative, and we have been extending efforts to bring new experiences to visitors ever since,” said Chief Executive Ivan Wong. “We continue to inject new elements into seasonal events like the Summer Splash, Christmas Sensation HOHOHO, and the Halloween Fest through crossovers with different IPs and strategic partnerships,” explained Wong. “For Water World, we have recently partnered with Yiu Wing Live for an event venue titled Aqualand at the entrance of the water park.”
He added that visitors could enjoy a unique resort experience along Hong Kong’s south side through the combination of Ocean Park, Water World Ocean Park and the two neighbouring hotels – the Hong Kong Ocean Park Marriott Hotel and the Fullerton Ocean Park Hotel Hong Kong. In an effort to boost visitor numbers, the company is also working with HKTB to host familiarization tours for travel trade representatives from the Mainland, ASEAN nations, Korea and Japan, etc.
Hui said Greater Bay Airlines was working to stay competitive by introducing new, fuel-efficient Boeing MAX aircraft and expanding its network of destinations to cater to post-pandemic market demand.
“We have opened [flights to] six popular destinations in just a year’s time including Bangkok, Taipei, Seoul, Tokyo, Osaka and Ho Chi Minh City,” said Hui, adding that a service to Manila would be launched on 8 November 2023.
He also revealed that the company will add four more Boeing 737-800 aircraft by the first half of 2024. In March 2023, the company announced an order for 15 Boeing 737-9 aircraft and Boeing 787 Dreamliners to support mid- to long-term plans for long-haul services.
Diversifying Tourism Products
The world of travel has seen a seismic shift in trends since the pandemic. As more travellers seek meaningful getaways steeped in nature, arts and heritage, demand is veering from shopping and entertainment towards cultural, sustainable and green tourism.
Recent trends show that the number of frequent independent travellers, or FITs, is also on the rise. “FITs have high spending power and are more inclined to invest in quality experiences, from enjoying local cuisines to celebrating regional festivals and holidays as opposed to conventional shopping,” explained Ng.
There has also been an increase in demand for hotspots and activities based on online content recommendations. Cheng said HKTB had also invited more than 1,000 media and travel trade professionals as well as influencers, including KOLs and bloggers on popular Mainland social media platforms like Xiaohongshu, Douyin, Weibo and Bilibili to Hong Kong for a first-hand experience, as “seeing is believing.”
HKTB has been promoting local neighbourhoods such as Old Town Central and Sham Shui Po to visitors seeking immersive cultural experiences. Outdoor activities being touted include hiking trails, beaches and outlying islands via the “Hong Kong Great Outdoors” campaign. In a special partnership with Xiaohongshu, HKTB has unveiled the latest Hong Kong Citywalk Guide, which comprises five routes taking in natural scenery, heritage, arts and culture, etc.
The full resumption of Art Basel Hong Kong, coupled with the attractions of M+ museum and the Palace Museum in West Kowloon Cultural District, as well as high-profile auctions, have also helped the city boost its status as an art hub. The “Arts in Hong Kong” platform acts as a showcase for international art events, from Art Basel to Le French May.
Hong Kong is also one of the world’s best-known dining capitals – five restaurants were on Asia’s 50 Best Restaurants list this year. To promote the city’s reputation as a melting pot for diverse cuisines, international chefs and food critics have been issued personal invites to collaborate with top local chefs and lead workshops.
Wong said Ocean Park has been promoting sustainable tourism via a range of activities, such as boat tours that highlight the diversity and fragility of Hong Kong’s marine ecosystems. A new Land-sea Tour, curated jointly with fishermen groups, is also in the works. “We hope to actively support the transition of local fishery to recreational fishery and facilitate the economic well-being of fishing communities, while promoting sustainable practices to the wider public,” he explained.
Song believes this thrust to diversify tourism products and services is integral to staying competitive. Offerings such as holiday resorts, international sport and music events, festivals, conferences and exhibitions, wellness and medical tourism products and services would attract a wider demographic of tourists, including high-spending visitors both from the Mainland and overseas, he added.
Ng said the Government could promote unique traditional festivals and events, such as the Mid-Autumn Festival and Dragon Boat Festival, and reinvigorate local tourism across Hong Kong’s 18 districts, based on their cultural and historical characteristics. She said the Government could also enhance accessibility to country parks and recreation areas in the New Territories and outlying islands by expanding transportation.
Photos: HKTB