The 1.4 million tourists who flocked to Hong Kong over the Chinese New Year holiday hopefully went away impressed by their experience. Border crossings from the north peaked at 150,000 visitors per day, a record number since the pandemic. During the Golden Week period last October, the city welcomed 1.22 million people from the mainland, and hotels enjoyed a healthy 90% occupancy rate.

This revival in arrivals is good news for the Hong Kong economy. As revealed in the Development Blueprint for Hong Kong’s Tourism Industry published in December, the sector accounted for 2.6 per cent of the gross domestic product in 2023, provided 150,000 employment opportunities, and contributed significantly to retail sales and the restaurant trade.

Amrit Sethi, Director of local travel agency Excella Travel, views the recent surge in visitors as a positive sign for the post-pandemic recovery of the industry. “However, it’s important to consider the implications for infrastructure and service capacity to maintain high-quality visitor experiences. Proactive planning in these areas will be essential,” she stresses.

Sethi praises the tourism blueprint for presenting a comprehensive vision for Hong Kong’s future in tourism. “As a tour operator, I find it particularly relevant, as it addresses key industry challenges and opportunities. Overall, it reflects a thoughtful approach to enhancing our unique offerings while laying a foundation for future growth.”

Tourism turn-offs

The report also highlights the challenges limiting Hong Kong’s capacity to receive visitors, which include the size of the city area, and the tight supply of venues for events such as conventions and exhibitions, outdoor performances and sporting competitions. Given this shortfall, better management of existing venue resources will be needed to meet the demand for different scales and types of events.

Stretched manpower supply, which could impede service quality if not addressed, is another issue spotlighted in the tourism blueprint. Like all industries, local tourism also faces the effects of the global economic slowdown, and the peg to the US dollar could exacerbate this situation and increase the costs of travelling here. Hong Kong is also facing increasingly stiff competition from other tourist centres in the region which have stepped up their offerings and extended the visa period or introduced special visas.

The blueprint suggests the city cannot compete on price with neighbouring destinations and should focus on high-quality attractions. The post-pandemic shift from traditional shopping tours for mainland visitors to more varied experiences reflects Hong Kong’s need to diversify its offerings to attract high-value tourism.

Coming for quality

“I agree with the emphasis on quality over quantity,” says Sethi. “Higher-value tourism products contribute significantly to our economy, but it’s essential to ensure they cater to the diverse needs of our visitors. Striking the right balance will enhance overall satisfaction and drive repeat visits.”

Kevin Lau, Founding Convenor of the Hong Kong Youth Professional Global Advocacy – an organisation connecting local youngsters to the world – similarly supports prioritising quality. “High-value tourism products, such as luxury staycations or curated cultural experiences, enhance visitor satisfaction and revenue per capita,” he says. “However, ‘quality’ must be inclusive, ensuring mid-tier offerings – such as budget-friendly heritage trails – remain accessible. A balanced approach avoids alienating price-sensitive travellers while maintaining premium appeal.”

To boost cruise tourism, he believes Kai Tak Cruise Terminal “requires upgrading with eco-friendly amenities to attract luxury liners”. Higher-value tourism can also be buttressed by wooing the silver-haired, family, study tour and youth sectors of the industry to Hong Kong and identifying their travel needs, according to the blueprint.

Here on business

Attracting overnight visitors is also a priority, especially by encouraging more meetings, incentives, conventions and exhibitions in Hong Kong – the MICE segment of the tourism industry. This correlates with a post-pandemic trend noted in the tourism blueprint: the rise of bleisure travel, whereby business visitors fold in leisure time with their work trips.

“Increasing overnight stays is vital for maximising economic impact,” says Lau. “MICE tourism thrives on Hong Kong’s business reputation, but we must invest in specialised facilities, such as larger convention centres and tailored services like multilingual guides.”

Lau outlines the three areas in which he believes Hong Kong’s tourism competitiveness can be bolstered: infrastructure modernisation, such as expanding airport capacity and improving public transport; distinctive cultural branding, including leveraging unique heritage sites like the historic Mong Kok district; and technology integration through AI-driven personalised itineraries and other innovations.

Build and they will come

Certainly, improved infrastructure facilities related to culture, sports and tourism are considered a cornerstone for Hong Kong’s competitiveness as a tourist destination. Following a series of trials involving thousands of people at Kai Tak Sports Park, the magnificent stadium at the heart of the complex opens this month; it is set to host British band Coldplay next month, followed by other top-notch performers.

Last month saw the prestigious London International Horse Show canter outside its home base for the first time, landing at AsiaWorld-Expo in Chek Lap Kok. Rosanna Law, Secretary for Culture, Sports and Tourism, said this high-octane equestrian extravaganza highlighted Hong Kong’s position as a world-class premier tourism destination.

Other venues have been newly completed or are under construction in a bid to attract international events or create synergy with existing happenings. These include SkyCity at the Hong Kong International Airport, the East Kowloon Cultural Centre; the Lyric Theatre Complex in the West Kowloon Cultural District; themed areas based on the Marvel films at Hong Kong Disneyland; Ma Wan Park Phase Two, and the new Adventure Zone at Ocean Park.

On the short haul

The fact that Ocean Park now boasts six giant pandas, the most living in one location outside mainland China, is another novel lure for tourists. Recent coming-out parties for twin cubs born last summer and plans for a panda museum are attractive initiatives to drive visitors to Hong Kong and into the theme park.

An increased desire for short-haul travel since the pandemic was noted in the tourism report.

Those popping across the border for the day or weekend may be motivated by baby bears, pop concerts and other mega events, or the latest city hotspots, walks and trends. “Additionally, promoting niche markets – such as medical tourism or eco-tours in the New Territories – could differentiate us from regional rivals like Singapore or Tokyo,” opines Lau.

He also advocates the protection of natural assets like the Hong Kong Unesco Global Geopark. “Globally, Hong Kong must align with UNWTO’s [United Nations World Tourism Organization] sustainability goals and leverage international partnerships [with Unesco, for example] to showcase its heritage.”

Cathay Pacific recently urged the government to roll out tailormade one-stop packages to attract transit tourism in Hong Kong, perhaps a timely initiative following the imminent opening of the three-runway system at the airport.

According to Lau, the tourist ecosystem in Hong Kong requires deeper public-private synergy. “For example, hotels, airlines and attractions should co-develop bundled packages, while the government streamlines visa policies for transit tourists,” he says. A centralised digital platform for real-time data-sharing among stakeholders could optimise resource allocation and crisis management during peak seasons.

Appropriately cultural

Further integration of the city’s culture, sports and creative industries as laid out in the blueprint is considered critical to sustaining tourism growth. “Cross-promotion – such as pairing the Hong Kong Film Festival with themed walking tours of filming locations – could attract diverse audiences,” says Lau.

Sports events like the Hong Kong Sevens could easily be paired with cultural festivals to extend visitor stays. “Moreover, creative industries can design immersive experiences [such as AR/VR exhibits] that showcase local art and history,” he notes.

Smartening up

The city is also being encouraged to improve smart tourism, something which will enhance the overall visitor experience and make Hong Kong more accessible, according to Sethi, though she admits challenges on this front remain.