Hong Kong Looks for Ways to Win Back Big-Spending Tourists
Context:
Hong Kong is striving to revamp its tourism sector by shifting its focus from shopping to hosting major events like concerts and trade shows, aiming to attract more affluent tourists. The city has been grappling with a tarnished image due to past protests, pandemic restrictions, and a national security law that has deterred Western tourists. A significant portion of visitors now comprises mainland Chinese tourists who typically spend less and have shorter stays. To compete with other Asian cities like Singapore, Hong Kong is investing in state-of-the-art venues and government-backed events to boost its appeal. Despite these efforts, the city faces challenges in recovering its international reputation and increasing tourism spending to pre-pandemic levels, while also dealing with local residents seeking cheaper leisure options in mainland China.
Dive Deeper:
Hong Kong's tourism strategy has shifted towards promoting itself as a hub for events, such as concerts and trade shows, to draw more high-spending tourists and rejuvenate its travel economy hit by protests and pandemic restrictions.
Mainland Chinese tourists, who make up over three-quarters of visitors, are spending less time and money in Hong Kong, opting for quick visits focused on minimal spending, posing a challenge to the city's economic revival efforts.
The city is investing heavily in new infrastructure, like the $4 billion sports park at Kai Tak, which hosts major events to boost tourism, supported by government subsidies to attract international celebrities and sports teams.
Hong Kong is struggling to distinguish itself from competitors like Singapore, which also hosts major events to attract global audiences, and is working to improve its international image tarnished by political issues and a national security law.
Local tourism faces additional hurdles as many Hong Kong residents prefer spending their leisure time in mainland China for more affordable entertainment, highlighting the need for Hong Kong to strengthen its appeal to both local and international tourists.
The city is actively courting tourists from Southeast Asia and the Middle East, and working with Chinese authorities to promote joint regional tours, aiming to integrate more closely with nearby Chinese cities.
Efforts to enhance Hong Kong's tourism appeal include collaborations with Chinese social media and travel companies, as well as marketing strategies targeting audiences from the Greater Bay Area and beyond.