The Lo Wu arrivals hall at Hong Kong’s border was packed with visitors during mainland China’s “Golden Week,” but as the five-day tourist rush began on Wednesday, queues there were moderate.
Mainland Chinese visitors have historically been the lifeblood of Hong Kong’s retail and service industries, spending on everything from basic goods like baby formula to luxury handbags and upscale restaurants — helping to shape the city’s economy in the process.
But after three years of Covid isolation, and before that a year of violent pro-democracy protests — not to mention the growing appeal of fast-growing mainland cities — Hong Kong has lost its luster for many Chinese tourists and is a long, long way from regaining its status, observers say.
Local authorities had hoped a million people would cross the border on May 1, the start of the traditional “Golden Week” boom period for Hong Kong’s tourism and retail sectors, but crowds at Lo Wu were subdued on Wednesday .
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“Hong Kong is much more expensive than before,” said a technician surnamed Leung, 54, who planned to visit local theme parks with his young children.
“In terms of value for money, Hong Kong is not that competitive.”
Although Leung said he was staying for three days, many visitors passing through Lo Wu said they took more affordable day trips.
Hong Kong is desperate to revive its tourism sector – which once made up about 5% of GDP – to offset the economic impact from the pandemic and political unrest in recent years.
But industry insiders say Hong Kong is still catching up, with visitors spending less during China’s economic downturn and locals preferring to holiday in neighboring Chinese cities.
“After the pandemic, the way people travel and their interests have changed, but we are lagging behind in discovering and packaging unique local attractions,” the city’s tourism lawmaker Perry Yiu told AFP.
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‘Unattractive’
Emerging from a nearly three-year tourism drought, Hong Kong in 2023 saw 34 million visitors — a number boosted by China’s decision to reopen its borders post-Covid.
But that number was still far short of the pre-pandemic, pre-protest peak seen in 2018, when Hong Kong welcomed more than 65 million visitors who collectively spent about $35 billion.
Worse, official figures showed a 73.5% drop in spending among day-trippers from mainland China, Hong Kong’s largest visitor demographic.
Xu Dengkai, an IT professional from Shanghai, made his first visit to Hong Kong on Wednesday, but he won’t be staying another day.
“It’s not particularly attractive to me as it looks just like Shanghai,” Xu told AFP.
A young mother surnamed Jiang, who was finishing a five-day trip to Hong Kong with her husband and young child, said she had not set aside money for shopping.
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“I would probably save my shopping for Japan,” Jiang said with a laugh, adding that goods in Hong Kong cost twice or three times more than in Chongqing, their hometown.
Jason Wong, former chairman of the Hong Kong Travel Industry Council, said the city “has a lot to do” to find unique offerings to attract visitors.
“Visitors now want more in-depth experiences as they can shop either on the mainland or online instead of relying on Hong Kong,” he told AFP.
The city’s currency pegged to the US dollar and overall high prices, as well as competition from regional rivals such as Singapore and Japan, have also affected the tourism climate, Wong said.
“The Good Side of Hong Kong”
Even among locals, Hong Kong’s appeal is dim.
Since China reopened its borders in February 2023, Hong Kong residents have flocked to neighboring mainland cities such as Shenzhen and Zhuhai for weekend trips.
On a recent day in late March, daily departures topped 760,000 — nearly three times the number of arrivals.
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Funeral services worker Ryan, 35, made weekly visits north to the mainland for “more fun for the same amount of money” and said he was not alone.
Cordelia Leung, a marketing professional, said she “loved” Hong Kong business, but spending two days across the border once or twice a month was “a more favorable treat”.
She named a number of attractions — better tennis courts, quality meals, more affordable hotels and a massage parlor where she could watch a movie while her feet were rubbed.
“In Hong Kong, even when I’m willing to pay for an expensive meal, I might not get good service,” Leung said.
Falling consumption has led to a wave of store and restaurant closures for months.
A Facebook group gathering news of local business closings saw its membership grow to more than 350,000 in a matter of weeks.
On the last 10 days of April, two cinemas were closed, one of which had a 58-year history.
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Asked about the shutdowns, Hong Kong leader John Lee on Tuesday brushed aside the suggestion of economic woes and called them “changes that would inevitably happen in our economic transformation.”
“Together we must promote the good side of Hong Kong to everyone,” Lee said.
Source: AFP