Hong Kong tourism focuses on opportunities amid ongoing challenges

This article was updated on Thursday, August 29 at 11:42 a.m. EST

Hong Kong’s post-COVID tourism recovery is full of positive news and opportunities.

But it’s also rife with challenges. As most of the world, including mainland China, reopened its tourism doors in 2022, the cosmopolitan city in Southern China, where East meets West, has struggled to attracted long-haul visitors like it once did.

But context is everything. Dane Cheng, executive director of the Hong Kong Tourism Board (HKTB), was in Toronto on Tuesday (Aug. 27) to explain.  

“We didn't see what markets in Europe or in the USA saw when they reopened, which was a year ahead of us,” Cheng told PAX in a sit-down interview at the downtown Omni King Edward Hotel. “[Markets] are seeing revenge travel very strongly. And we also see that, but at a slightly different pace than other countries.”

READ MORE: Returning tourists & mega events – “Hong Kong is back,” says HKTB’s Michael Lim

The main issue – at least from a Canadian perspective – has to do with air capacity. Flights from Canada to Hong Kong aren’t what they used to be. Lift has resumed, yes, but the number of flights operating is about two-thirds (67 per cent) of pre-COVID levels, Cheng explained.

And there are many reasons why, from lack of resources at airlines to crew and aircraft constraints to ongoing overfly restrictions with Russia.

Limited lift may hindering Hong Kong’s growth, but signs of increased capacity and connections remain.

Air Canada, for one, boosted its Asia-Pacific network earlier this year. The enhancements include up to 11 weekly flights between Vancouver and Hong Kong, and doubling capacity between Canada and Japan (which is about a five-hour flight away from Hong Kong).

Cathay Pacific offers non-stop flights from both Vancouver. Toronto-Hong Kong connectivity can also be found at EVA Air and China Airlines. 

Travellers can also access Hong Kong from elsewhere, whether it be Japan, Korea or Taiwan.

But there is a silver lining. “The arrival numbers actually outgrow the capacity recovery,” Cheng said.

“People miss Hong Kong”

How does Hong Kong measure its recovery? By comparing its arrival numbers to 2018, a record year for tourism as the densely-populated city welcomed 65 million visitors.

This past July, Hong Kong saw 3.4 million visitors, which is about 70 per cent of 2018’s levels. Tourists from Mainland China made up the bulk of the total (78 per cent), while the rest were from Southeast Asia, followed by the rest of the world.

“I think many people miss Hong Kong. They haven't been back in two, three years,” Cheng said.

READ MORE: Say hello to Hong Kong, where arts & culture festivals never stop

For the first seven months of this year, Hong Kong saw 25 million visitors, representing 52 per cent year-on-year growth, the HKTB says.

From January to July this year, the city saw 175,250 Canadian visitors, which is 80.2 per cent of 2018’s levels.  

This may not reflect a full recovery, but the tourism board isn’t complaining. Hotels – and the greater travel and tourism industry – are still facing frontline labour shortages, which puts a strain on the entire system, Cheng said.

If anything, a slow and steady reopening gives Hong Kong time to rebuild its workforce.

“There are people who would like to see more tourists coming back,” Cheng told PAX. “But in my view, it's a good thing that we’re recovering gradually and progressively.”  

Shopping is out

If 2024 has proven anything, it’s that traveller behaviours have changed – including spending habits.

Cheng says tourist spending per capita has gone down in Hong Kong due to a declining interest in shopping.

“Hong Kong has always been known as a shopping paradigm,” he said. “But I think the whole online platform has become so accessible and easy over the past few years. People can shop anywhere, anytime, and can find the best prices.”

“So shopping, unfortunately, is no longer the main reason that people travel to Hong Kong.”

Currency is another barrier. The exchange rate of the Hong Kong dollar, which is pegged to the rising U.S. dollar, is making things pricier. 

“Hong Kong is getting quite expensive, to some extent, but the quality is still there,” Cheng said.

Leisure travellers, instead, are spending their dollars on Hong Kong’s experiential side, embracing the city’s urban parks and mountains (about three quarters of Hong Kong is countryside; urban areas make up less than 25 per cent).

“I think that's a trend – not just for Hong Kong, but for everywhere,” Cheng said.

Always something new

Arts and culture, including new attractions, all fit into this realm. In a diverse city of nearly 7.5 million people, there’s always something new to discover in Hong Kong.

Some of the city’s latest attractions include the Hong Kong Palace Museum in the new West Kowloon Cultural District, the new sixth-generation Peak Tram, Frozen theme land at Disneyland Hong Kong, Water World Ocean Park and enhanced waterfront promenades.

There’s also M+, Asia's first global museum of contemporary visual culture, also located in the new West Kowloon Cultural District – “where you can see a whole new skyline,” Cheng said.

 Adding to this are traditional must-sees, like Temple Street, a decorated neighbourhood known for its night market, which was recently revitalized. It’s a picture-perfect portrait of Hong Kong nightlife.

The rise of “mega-events”

But where Hong Kong expects a big economic boost is from its robust calendar of “mega-events.”

The 210 events happening in Hong Kong this year are expected to attract some 1.7 million visitors and generate HK$7.2 billion in spending, which amounts to some HK$4.3 billion in economic value to the economy, said the city’s deputy financial secretary Michael Wong in May.

Some big-budget events that have already taken place include Art Basel Hong Kong, Hong Kong Art Week, Art Central at the Central Harbourfront, the World Fair ComplexCon (an L.A.-based event that bridges international pop with urban culture) and more.

Coming up, there’s the Hong Kong Wine & Dine Festival, an annual celebration of epicurean offerings at the end of October.

This also kickstarts a month-long “Taste Around Town” celebration – a series of dining promos across the city throughout November.

Halloween will also be serious boos-iness in Hong Kong this year. “It's not going to be just a weekend, it'll be two to three weeks, or a month,” Cheng said, noting that Hong Kong Disneyland will have all sorts of special programming.

Sports, too, are injecting new life into the city. The Hong Kong Sevens, a rugby sevens tournament, returned in April, for example. Additionally, a new sports stadium, Kai Tak Sports Park, is set to open in 2025. It will be able to hold some 50,000 spectators.

Then comes holiday programming in December, followed by the Chinese New Year, which runs January 29 to February 12. (2025 will be the Year of Snake).

“Sometimes people think there are too many things going on in Hong Kong,” Cheng said, later adding that the city is “safer than ever.”  

“People find it confusing, but once you go, you’ll experience the same kind of vibes and energy.”

Tips for Canadian travel advisors

Cheng’s advice to Canadian travel advisors is to not get discouraged by scaled-down air capacity and rising air fares, and instead view Hong Kong as one piece of a multi-destination itinerary.

The introduction of a new high-speed rail link, which cuts the travel time between Hong Kong and Beijing in half, also supports a compelling, multi-city adventure.

“A lot of Canadians want to do more than just one stop. They want to go to maybe two or three places,” he said. “If they fly anywhere in Asia, Hong Kong is a must-visit stop because it’s conveniently in the middle.”

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