Fewer mainland Chinese tourists were visiting Hong Kong mainly to shop compared to the pre-pandemic era, the city’s finance chief has said.
“In the short term, we need to work together with the industry to revitalise and invigorate the night market in Hong Kong, strengthening various economic sectors in the recovery process and maintaining the momentum of recovery,” Financial Secretary Paul Chan wrote in his Chinese-language blog on Sunday.
Chan also said that private consumption and inbound tourism were expected to be the main drivers of economic growth in the latter half of the year.
Hong Kong’s tourism industry has been recovering gradually since the city’s borders were opened at the beginning of the year after several years of Covid-related closures.
The city welcomed almost 13 million visitor arrivals from January to June, of which 10 million were from mainland China, according to figures from the Hong Kong Tourism Board (HKTB) announced last Friday.
During the same period in 2019, the city recorded 34.78 millions visitors, 79 per cent of whom were from mainland China.
Dane Cheng, executive director of the HKTB, said during a press conference last Friday that based on HKTB surveys, the consumption habits of mainland Chinese tourists had changed, with fewer “coming to Hong Kong primarily for shopping,” and more interested in arts and cultural activities, especially young people.
Mainland China’s post-pandemic economic recovery has been weaker than expected, with July’s consumer price index falling 0.3 per cent year on year as the world’s second largest economy slipped into deflation.
Ceajer Chan, the former secretary for financial services and the treasury, said in Cantonese on RTHK on Sunday that Hong Kong’s recovery “has not met expectations.” Chan urged the government to allocate more resources to boosting tourism, such as promoting Hong Kong to foreigners.
Chan said that fewer foreign tourists visited Hong Kong because the city’s image has been impaired amid tensions between China and the US. He suggested the authorities hold more activities for foreigners to “rediscover Hong Kong.”
Night bazaars
Some pro-establishment lawmakers have suggested learning from Taiwan or mainland China to develop night markets in Hong Kong.
Michael Lee, a lawmaker from the pro-Beijing Liberal Party, told Chinese-language news outlet Oriental Daily that the city could develop waterfront night markets and offer various activities to attract people to consume and take photos to post on social media.
Lee also said that night markets could also help boost hotel revenue as travellers would be more inclined to stay at least one night to enjoy nighttime activities.
Eunice Yung, a pro-Beijing lawmaker from the New People’s Party, said there were already street markets held during holidays and on weekends, but the city should introduce permanent night markets with more activities.
However, according to HK01, Simon Wong, a businessman and the president of the Hong Kong Federation of Restaurants & Related Trades, said that restaurants would suffer from increased pressure if the government developed night bazaars.
Wong said that the industry had seen decreasing revenue for dinners this year.
According to Chinese-language local media reports, Yeung Wai Sing, the president of the Association for Hong Kong Catering Services Management, said on Saturday that restaurants had faced difficulties in recent months, with many experiencing a lack of customers after 8 pm. According to Yeung, the industry has only recovered around 60 to 70 per cent of its pre-pandemic levels.
Yeung said the decline was due to the immigration of middle-class families and reduced spending by travellers. He added that tourists were now spending less: “Previously, where someone would spend HK$1,000, now they are only spending around HK$600.”
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