Hong Kong urged to shift focus from tourist numbers to increasing spending

Researchers have urged Hong Kong to shift its focus from boosting visitor numbers to increasing tourist spending, as mainland Chinese arrivals rebound but adopt more selective consumption habits. Preliminary findings from a joint study by Hong Kong Polytechnic University and consultancy Think China, released on Tuesday, show mainland visitor arrivals have recovered to about 88 per cent of pre-pandemic levels in 2018. However, high-income travellers are spending less and becoming more value-conscious. “Visitors are coming back, but do they spend more?” said professor Kam Hung, the study’s principal investigator. “We need to think beyond traffic … and have more conversion thinking.” The findings are based on 3,209 valid responses from mainland visitors to Hong Kong and Macau, 60 per cent of whom (1,928) visited the city. Data was collected through a combination of online and on-site surveys. Researchers said mainland tourists should no longer be viewed as a single group, with clear differences emerging between same-day and overnight visitors. Same-day travellers, mainly from the Greater Bay Area, visit more frequently but spend less, with median spending of about 1,000 yuan (US$138) per trip. Overnight visitors, more likely to come from outside the region, stay an average of 2.6 nights and spend about 5,000 yuan in total. The study also found a widening gap between high-value and mass-market segments. Luxury shoppers, defined as those who purchase at least one high-end item such as jewellery or handbags, spent a median of 20,000 yuan per trip — about four times that of non-luxury visitors. At the same time, researchers identified a trend they termed “selective premiumisation”, with some travellers cutting accommodation costs while maintaining or increasing overall spending. Visitors who mixed stays between high-end and lower-tier hotels recorded the highest expenditure, at about 8,700 yuan per trip, despite accounting for a small share of respondents. “They are very cost-conscious but value-driven,” Hung said. “They are willing to pay, but they are consuming more smartly.” The study found shopping remained a key draw for mainland visitors, although spending had become more deliberate. Travellers are increasingly influenced by social media, short videos and live-streaming platforms when making purchasing decisions. Hong Kong retains an edge as a trusted destination for luxury goods, with respondents citing product authenticity, brand credibility and availability as key attractions, despite narrowing price advantages. The study also highlighted the growing importance of repeat visitors from the Greater Bay Area, who make frequent short trips but are not always fully tapped by businesses. Benjamin Sun, managing director of Think China, said companies needed to rethink how they define their customer base. “In reality today, there is no such clear line any more between tourists and locals, because these people come back every single week,” he said. He added that businesses should adopt a year-round strategy, targeting mainland visitors before, during and after their trips to boost conversion and spending.