‘Golden week’: Hong Kong draws more mainland Chinese visitors but spending uneven

Hong Kong recorded a 4.8 per cent increase in mainland Chinese visitors in the first three days of their Labour Day “golden week” holiday, but industry players warned that uneven spending and more flexible travel patterns could weigh on business despite hotel occupancy rates potentially reaching 90 per cent. Immigration Department data showed mainland Chinese made 714,765 visits to the city between May 1 and 3, up by about 4.8 per cent from 682,114 in the same period last year. Total visitor arrivals, including overseas travellers, reached 854,929 over the three days, slightly up from last year’s 803,612. The data also showed strong outbound travel by Hong Kong residents, with more than 1 million departures recorded over the first three days of the holiday, 3.3 per cent lower year on year. Early feedback from the catering sector suggested the increase in footfall had not translated evenly into spending, particularly at upscale restaurants. “Overall there is growth compared with last year, but each segment is different,” Samme Cheng Pak-man, vice-chairman of the Institute of Dining Professionals, said. “Casual dining has seen relatively strong increases, even in the double digits, but traditional banquet-style restaurants have only recorded mild growth of a few per cent.” High-end restaurants had not performed as strongly as expected despite crowded tourist areas, Cheng added. “The booking situation and sales are not particularly outstanding,” he said. “Many visitors now are not high-spending customers, and their dining habits tend to be more modest.” He said the industry would need to strengthen promotion and work more closely with the tourism sector to attract diners, particularly by highlighting Hong Kong’s comparative strengths in non-Chinese cuisines. “It’s not enough to just open the doors and rely on reputation,” he said. “The industry needs to do more in promotion and create highlights that attract visitors.” Timothy Chui Ting-pong, executive director of the Hong Kong Tourism Association, said the popularity of camping in Sai Kung during the holiday would not significantly affect hotel occupancy, as overall visitor numbers remained the key factor. “When we have high enough numbers, we will not have to worry,” he said. “There are different ways to experience the city, so naturally, different kinds of travellers will emerge.” He noted seeing visitors with camping gear checking into a five-star hotel on Sunday. “Today they might go camping, but tomorrow they can continue sampling good food, shopping and having fun in the city, this is Hong Kong’s advantage,” Chui said. Edward Leung Hei, a former lawmaker and chairman of the Hong Kong Feast and Retreat Association, said rainy weather could affect hotel demand, noting that occupancy rates and room prices had already fallen after it rained on Sunday compared with the same period last year. He said a growing trend of multi-destination trips, facilitated by high-speed rail links, meant visitors could easily change their plans. “If it starts raining in Hong Kong, visitors may consider heading to Macau or Zhuhai,” he said. Still, Leung said hotel occupancy rates could reach about 90 per cent over the holiday, pointing to a growing trend of last-minute bookings. “The longer operating hours of the high-speed rail and more convenient return channels give travellers a safety net,” he said. “At the very last moment, some may feel that since the hotel price is acceptable, they may as well stay in Hong Kong.” Retailers in prime tourist locations, meanwhile, reported satisfactory business so far. K11 Hong Kong said its two shopping centres in Tsim Sha Tsui – K11 Musea and K11 Art Mall – saw stronger retail sales over the past four days, supported by an increase in inbound visitors and recent changes to their tenant mix. Chief executive Horace Lam said sales rose by double digits across several categories – including international luxury brands as well as jewellery and watches – in the first three days compared with a year earlier. Sportswear and fashion also recorded solid growth over the period, he added. Lam said the performance was driven in part by K11’s positioning in Tsim Sha Tsui and its proximity to hotels and tourist attractions, as well as a series of curated events held during the holiday. He added that there was growing demand for exclusive and experience-led offerings, pointing to strong interest in new brand launches and pop-ups, including Japanese fragrance label Shiro and Korean lifestyle brand Verish. “The strong customer response suggests visitors are increasingly prioritising exclusive and experience-based offerings, rather than purely transactional purchases,” he said. Henderson Land Development, whose shopping centres include the IFC Mall in Central, said its portfolio also saw improved footfall during the holiday period. Terence Chan Tak-ming, a general manager of portfolio leasing, said footfall across its major shopping centres was expected to rise by about 5 per cent year on year in the first three days of the break. He attributed the increase to a series of events held across the city, including the Hong Kong Pop Culture Festival. “These events have helped draw visitors to different districts and supported overall retail traffic during the holiday,” he said.