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Hong Kong’s hotels see business lift from Rugby Sevens, Art Basel after city misses out on ‘Swiftonomics’

  • Hong Kong expects visitor numbers to grow this year despite lack of ‘Swiftonomics’ – economic lift to pop star Taylor Swift’s concert venues
  • Besides events like the Hong Kong Sevens, tourism could be driven next month by an electronics exposition, a fashion fair and a gifts exhibition

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Mainland tourists visit Avenue of Stars at the Tsim Sha Tsui Waterfront during the Lunar New Year holidays. Photo: Eugene Lee
Cheryl Arcibal

Hong Kong’s hotels are looking at sporting, arts, consumer and entertainment events to drive tourist flows into the city, after it missed out on “Swiftonomics” – the economic boost felt by destinations of pop megastar Taylor Swift’s record-breaking Eras Tour.

Iconic global events like the Hong Kong Rugby Sevens and Art Basel will push forward the city’s ambitions of becoming a cultural hotspot by attracting tourists willing to spend and strike deals, in turn benefiting the hotel, entertainment and other related sectors in the city.
A city of just 7.5 million inhabitants, Hong Kong is one of the most services-oriented economies in the world and has always relied on international visitors to bolster its wider retail segment. Before the onslaught of the Covid-19 pandemic in 2020, mainland tourists contributed 30 per cent of all retail spending in the city, according to property consultancy CBRE.

In 2023, the hotel industry had seen some recovery with monthly occupancy rate of between 66 per cent and 87 per cent, higher than the monthly occupancy rate of between 55 per cent and 75 per cent in 2022, according to data compiled by Colliers. However, they remained below the 82 per cent to 94 per cent monthly occupancy rate in 2018, the year before Hong Kong was rocked by social unrest.

Fans on the second day of the Hong Kong Sevens 2023 at Hong Kong Stadium in Causeway Bay. Photo: Yik Yeung-man
Fans on the second day of the Hong Kong Sevens 2023 at Hong Kong Stadium in Causeway Bay. Photo: Yik Yeung-man

This year, the Hong Kong Tourism Board anticipates 46 million visitors to the city, 35 per cent more than last year but still just 70 per cent of the 65 million tourists who came in 2018. Meanwhile, estimated spending per overnight visitor is expected to shrink by as much as 16.4 per cent to HK$5,800 (US$741) this year from HK$6,939 in 2023.

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