As inland transportation improves, the number of tourists from mainland China visiting Hong Kong has reached its highest level since the COVID-19 pandemic, but Hong Kong's travel revenue has not significantly increased. This is due to changes in the travel and consumption behavior of mainland tourists caused by China's economic downturn.
On the 25th (local time), the Financial Times (FT) reported in an article titled "Mainland Chinese special forces tourists flock to Hong Kong, but expenditure drops," stating that "More than 910,000 people from mainland China visited Hong Kong during the May Day Golden Week (May 1-5)." It noted, "While the numbers seem impressive, the reality is that Hong Kong's tourism industry is struggling."
With the opening of high-speed rail and the Hong Kong-Zhuhai-Macao Bridge, the number of mainland Chinese tourists has shown a steady increase. The Hong Kong-Zhuhai-Macao Bridge, which opened in 2018, starts from an artificial island near Hong Kong International Airport and connects to Zhuhai and Macau. As transportation has become more convenient, the number of mainland tourists visiting Hong Kong last year was approximately 34 million, a 27% increase compared to 2023.
The problem is that more than half of mainland tourists visit Hong Kong for a day. Several travel agencies in China have launched one-day group tour packages, which include lunch and transportation, priced at 138 yuan (approximately 27,000 won). A travel agency based in Shenzhen, Overseas Tour China, told FT that "One-day trips are the most popular product."
Average expenditure by Chinese tourists has also decreased nearly by half, from 2,400 Hong Kong dollars (approximately 420,000 won) in 2018 to 1,300 Hong Kong dollars (approximately 230,000 won) in 2024. This is due to the prolonged economic downturn in China, which has weakened the consumption power of its citizens. On China's version of Instagram, "Xiaohongshu," users are sharing ways to save on travel expenses, such as sleeping in public free campgrounds or 24-hour McDonald's.
Moreover, the depreciation of the yuan has increased the travel expense burden for mainland travelers. This year, the yuan has dropped to its lowest level against the dollar in 18 years. Due to the peg system, which fixes the exchange rate at 7.75-7.85 Hong Kong dollars per U.S. dollar, the incentive for mainland tourists to visit Hong Kong for shopping has diminished. A Shenzhen tourist in her 30s, Linna Huang, remarked, "Now the prices in Hong Kong and mainland China are similar, so it’s better to buy in Shenzhen."
As Chinese tourists prefer low-cost short-term travel, Hong Kong's tourism industry has suffered significant setbacks. According to estimates by French investment bank Natixis, the contribution of the tourism industry to Hong Kong's economy is projected to decrease from 4.5% in 2018 to 2.7% in 2024. Overall retail sales in Hong Kong dropped over 6% year-on-year in the first quarter of 2025, and sales of jewelry and watches, which are an indicator of luxury consumption, decreased by 12% compared to the previous year.
Becky Lam, who works at a jewelry store in Tsim Sha Tsui, a representative tourist destination in Hong Kong, stated, "Sales have dropped by over 80% compared to the boom in 2018," adding, "Even with discounts of up to 70% on jade, pearls, and watches, the spending power of mainland tourists is nearly nonexistent." Hotel chain Ovolo Group reported that room occupancy rates have fallen from 88% in 2018 to around 60-70% last year.
Gary Ng, chief economist at Natixis, noted, "A structural change is taking place among mainland travelers," and added, "People are no longer staying long and are significantly reducing their expenditures."
FT also highlighted the case of mainland Chinese traveler Carol Wang, who visited Hong Kong this month. Originally from eastern China, Wang stayed in Hong Kong for just one day and resolved meals and accommodations in nearby Shenzhen, spending only 400 Hong Kong dollars (approximately 70,000 won) on her trip to Hong Kong. Although Shenzhen is connected to Hong Kong's West Kowloon Station by high-speed rail, the cost of living is relatively cheaper.
FT evaluated that "Low-cost travelers are replacing big spenders purchasing luxury goods, leading to a decline in tourist expenditure," and stated, "As a result, Hong Kong's retail, dining, and hotel revenue is under pressure."