Andy Cheng

Opinion | 3 ways Hong Kong can easily and quickly up its tourism game

Hong Kong has all the ingredients it needs, from its East-meets-West cultural history, free port tax-free status and vast natural attractions

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Lau Shui Heung Reservoir, one of the most popular hiking trails in Hong Kong, on December 20. Most of Hong Kong’s underappreciated natural attractions are within 45 minutes of the city centre. Photo: Yik Yeung-man

Andy Cheng

Published: 7:30pm, 29 Apr 2024

After the Covid-19 pandemic, Hong Kong’s neighbours all seem to have regained their tourism vibrancy before we have. And with a stronger currency, Hong Kong’s tourism offerings have become much less appealing.

We did not expect to see more outbound travellers than inbound visitors after Hong Kong reopened its borders last year. Over three days during the Easter holiday this year, for example, about 2 million residents left the city while visitor arrivals reached only 1.2 million. This net outflow of 800,000 people was a blow to the city’s retailers and restaurants who had hoped to cash in on the holiday bonanza.

If this trend persists, it will hurt Hong Kong’s economic recovery. Tourism Board numbers show that visitor arrivals last year were 31 million fewer than in 2018 – the drop in same-day arrivals from the mainland made up over half of this decline.

The pharmacy closures in Sheung Shui in recent years reflect falling demand from grey good traders, mostly from the mainland, who used to make up the bulk of same-day arrivals. This demand will not recover as online shopping has improved. More recently, the stronger Hong Kong dollar and the mainland’s economic slowdown has further weakened demand.

Nowadays, tourists care not only about prices but also about quality and variety. The mainland offers better value for money and even Hongkongers are crossing the border for leisure, where a nice restaurant meal can cost just HK$80 (US$10) per person vs HK$200 in Hong Kong. There is also a greater range of activities, including at theme parks, zoos, indoor sports parks and family-friendly hotels, many of which are either not available in Hong Kong or exist on a much smaller scale.

Still, there’s no reason for despair. Unique, novel experiences attract visitors and encourage consumption, and Hong Kong has all the ingredients it needs.