The anti-tourist dream is in Hong Kong. The problem is that they invested a lot to be like London, and tourism doesn’t show up

Few places on the planet have suffered as much as Hong Kong after the pandemic. We already knew that they were struggling with their own problems, especially in terms of education, but what was until relatively recently sold as one of the most cosmopolitan and attractive cities for tourism is suddenly empty of foreigners. Used to be. They’ve been seeing this coming for a long time, but the truth is that, indirectly, it has become the dream of the anti-tourist movement.

News. Despite running one of the most powerful campaigns in memory ($129 million invested in 2023), where everything from elaborate shows with drones and pyrotechnics to gifts of plane tickets or invitations to thousands of influencers Is. The city and “tell a good story”, the statistics do not deceive: Hong Kong has a bottomless bag of tourism losses compared to the apparent undertourism of the rest of the planet.

Compared to other Asian destinations such as Thailand or Japan, tourism in Hong Kong continues to lag, with numbers significantly lower than before the pandemic (30% of 2018 levels). There are several reasons that explain them.

Factor. many. The New York Times noted these days that pro-democracy protests in 2019 led to a 40% decline in tourism during the second half of that year. Then the COVID-19 pandemic and severe border restrictions worsened the situation.

This also includes an exodus of foreign residents and companies, a breeding ground that has weakened Hong Kong’s position as a global financial centre, in favor of other Asian cities that have developed their own tourism infrastructure. And if all this wasn’t enough, locals now prefer to travel to mainland China due to lower prices, affecting local business, causing many establishments to close.

Raw data. As the Financial Times reported, tourism, crucial to the enclave’s economy, is much lower than it was before the pandemic, at about 30% of its 2018 levels. Then, after the end of the pandemic, tourists spent less: per capita spending fell 30% in the first six months of 2023 compared to 2018. This has severely impacted retail sales, leading to a decline in momentum in key restaurant sectors such as restaurants and stores, while local residents are “fleeing” to mainland China in search of savings in their wallets.

The numbers don’t lie: At its peak in 2018, Hong Kong welcomed 65 million visitors, who spent more than $42 billion, equivalent to 4.5% of its GDP. In 2019, tourism fell to 56 million with spending of $33 billion. And although that figure is expected to rise to 34 million in 2023, it is still a far cry from pre-pandemic levels. So, about 29 million people visited Hong Kong, but the activity is still “small” compared to pre-pandemic figures.

A wasteland of what was. The NYT describes a recent visit to Hong Kong where previously bustling tourist destinations such as Mong Kok and luxury shopping malls in the Victoria Harbor area were now quite remote and quiet places, with no trace of the vibrant place of yesteryear.

Once-iconic restaurants like the Under Bridge Spicy Crab are now doing little business, and a large number of small businesses have closed due to mounting debt. In fact, between March and August 2023, it is estimated that nearly 1,000 restaurants will have closed, and nightlife is lagging, being much less active than before, according to local businessmen.

Luxury, in short hours. The luxury hotel sector, represented by hotels such as The Peninsula or The Upper House, is also not improving. In August, Hong Kong and Shanghai Hotel Group reported an underlying loss of $57 million in the first half of 2023, compared with a profit of $19 million in the same period of 2019.

The decline in tourism from places like the United States and Europe has been a major factor, while, as we said, many Hong Kong residents prefer to travel to Shenzhen in search of much lower prices.

Connectivity problem. The last phase which has been cited as a major factor in the decline in tourism. Airlines have been slow to resume flights to Hong Kong, hurting the sector’s recovery. In October 2023, the number of seats available on flights to and from Hong Kong was 18% less than five years earlier. Specifically, connections to North America declined by 34% and to Europe by 41%.

What’s more, some airlines like Lufthansa have reduced their capacity by more than 60%, and British Airways has reduced its flights between London and Hong Kong by 42%. Of course, there is a small ray of hope: United Airlines, the only US airline still flying to Hong Kong, has increased its services, and Cathay Pacific Airways plans to restore all of its pre-pandemic routes by 2025. Is working for. Also, the runway expansion work of Hong Kong International Airport is scheduled to be completed by the end of 2023.

Future. Sadly, all these factors have turned Hong Kong into a kind of utopia with an anti-tourism movement springing up in many enclaves where, until recently, the public was welcome. Despite the challenges, Hong Kong remains attractive to tourists for its scenery, culture and commerce, but the city is struggling to regain that status as a worldwide destination.

Additionally, security warnings issued by Western governments such as the United States, which have highlighted the decline in civil liberties under new national security legislation, may impact long-distance tourism. This is, perhaps, the biggest challenge for the region’s recovery. As Dan Cheng, chief executive of the Hong Kong Tourism Board, explains, misconceptions, especially in long-haul markets, are extremely difficult to counter and, above all, to change.

Image | JohnLSL, Wilfredor

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