Few places on the planet have suffered as much from the post-pandemic era as Hong Kong. We already knew that they were dealing with their own problems, especially in terms of education, but the city, which until recently was sold as one of the most cosmopolitan and attractive cities in terms of tourism, suddenly becomes devoid of foreigners. They had seen it coming for a long time, but the truth is that it has indirectly become the dream of the anti-tourism movement.

News. Despite having one of the strongest campaigns in memory ($129 million invested in 2023), it’s a campaign that includes everything from elaborate stunts with drones and pyrotechnics to airfare giveaways or invitations to thousands of influencers. City and “tell a good story”, the numbers are not deceiving: tourism in Hong Kong is a bottomless bag of losses compared to the apparent touristification of the rest of the planet.

Compared to other Asian destinations such as Thailand or Japan, tourism in Hong Kong continues to lag behind figures significantly lower than before the pandemic (30% of 2018 levels). There are various reasons explaining these.

Factors. A lot. The New York Times noted these days that pro-democracy protests in 2019 caused a 40 percent drop in tourism in the second half of that year. Then came the Covid-19 pandemic and severe border restrictions that made the situation worse.

Added to this is the migration of foreign residents and companies, a breeding ground that has weakened Hong Kong’s position as a global financial center in favor of other Asian cities that are developing their tourism infrastructures. As if all this wasn’t enough, locals now prefer to travel to mainland China due to low prices; This further affects local trade, leading to the closure of many businesses.

Raw numbers. As the Financial Times explains, tourism, which is vital to the region’s economy, remains much lower than before the pandemic, at levels of around 30% compared to 2018. After the end of the pandemic, tourists spent less: Per capita spending fell by 30 percent. This has severely affected retail sales, causing a loss of momentum in key restaurant sectors such as restaurants and shops, while locals are also “escape” to mainland China in search of savings in their wallets.

The numbers don’t lie: At its peak in 2018, Hong Kong hosted 65 million visitors; these visitors spent more than $42 billion, equivalent to 4.5% of its GDP. In 2019, tourism decreased to 56 million with an expenditure of 33 billion dollars. And although that figure has increased to 34 million by 2023, it is still a long way from pre-pandemic levels. So about 29 million people visited Hong Kong, but the activity is still “small” compared to pre-epidemic data.

Formerly a wasteland. The NYT describes a recent visit to Hong Kong, where previously bustling tourist destinations such as Mong Kok and the upscale shopping malls in the Victoria Harbor area are now quite inhospitable and quiet places, bearing no trace of the lively venues of yesteryear.

Once-iconic restaurants like the Under Bridge Spicy Crab are now in much less business, and many small businesses have closed due to mounting debt. In fact, according to local businessmen, it is estimated that approximately 1,000 restaurants have closed between March and August 2023, and nightlife is much less active than before.

Luxury during low hours. The luxury hotel sector, represented by hotels such as The Peninsula and The Upper House, is also not developing. In August, Hongkong and Shanghai Hotels group reported an underlying loss of $57 million in the first half of 2023, compared to a profit of $19 million in the same period in 2019.

While reduced tourism in places like the United States and Europe has been a major factor, as we said before, many Hong Kong residents are choosing to head to Shenzhen in search of much lower prices.

Connection problems. It is the last of the pillars shown as the most important factor in the decline in tourism. Airlines have been slow to restart flights to Hong Kong, which has negatively impacted the industry’s recovery. In October 2023, the number of available seats on flights to and from Hong Kong was 18% lower than five years ago. In particular, connections to North America fell by 34% and connections to Europe dropped by 41%.

Moreover, some airlines, such as Lufthansa, have reduced their capacity by more than 60 percent, while British Airways has reduced its flights between London and Hong Kong by 42 percent. Of course, there’s a little hope: United Airlines, the only American airliner currently flying to Hong Kong, has increased service, and Cathay Pacific Airways is working to restore all of its pre-pandemic routes by 2025. In addition, the runway expansion project at Hong Kong International Airport is planned to be completed by the end of 2023.

Future. All these factors, unfortunately, have turned Hong Kong into a kind of dream of the anti-tourism movement that has been developing in many regions where until recently the masses were welcomed. Despite the challenges, Hong Kong remains attractive to tourists for its scenery, culture and commerce, but the city is struggling to regain this status as a cosmopolitan destination.

Additionally, security warnings from Western governments, such as the United States, highlighting the decline in civil liberties under the new National Security Act, may also continue to harm long-distance tourism. This is probably the biggest challenge to the industry recovery. As Dane Cheng, chief executive of the Hong Kong Tourism Board, points out, it is extremely difficult to combat and above all change misperceptions, especially in long-distance markets.

Image | Johnlsl, Wilfredor

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