HONG KONG, CHINA. Overnight visitor numbers rising steadily but their spending levels plummeting. That’s the distinctly mixed message for retailers arising from two new Hong Kong Tourism Board (HKTB) reports related to tourism arrivals and spending habits.
Spending by overnight visitors plunged by nearly -40% year-on-year in 2023 with a further decline expected in 2024, the Tourism Board said. This would mean a return to pre-pandemic levels this year.
Citing HKTB, the South China Morning Post reported last week that per capita spending by the group hit HK$9,700 (US$1,240) in Q1 2023 but steadily declined throughout the year to HK$7,400 (US$946) in Q2, HK$6,200 (US$792) in Q3 and HK$6,100 (US$780) in Q4, a -37% fall between the first and final quarters.
HKTB officials blamed a strong Hong Kong dollar, uncertain economic conditions and a change in tourists’ behaviour
The Mainland China/Hong Kong border fully reopened in February 2023. HKTB statistics showed that same-day visitor spending was essentially flat throughout 2023, peaking at HK$1,400 (US$179) in Q3. The full-year HK$1,300 (US$166) average was well short of the pre-pandemic 2019 HK$2,000 (US$255) level, the South China Morning Post observed.
Total Hong Kong retail sales in January 2024 edged up +0.9% year-on-year to HK$36.5 billion (US$4.7 billion). But the volume of sales was down -1.2% over the comparative period.
In a separate report, again citing data from the Hong Kong Tourism Board, the South China Morning Post reported that the city is to welcome 46 million visitors this year, roughly 70% of pre-pandemic levels. In 2023, Hong Kong recorded 33.9 million travellers but retail spending slowed, particularly by visitors from the Mainland.
Hong Kong’s tourism has seen a sluggish recovery despite the full restoration of flight capacity last year and the government launching a marketing blitz.
Visitors from across the border – who as the table above shows, account for the majority – have also changed their spending patterns and no longer spend as much on luxury retail. ✈
