Hong Kong retail challenges persist despite rise in tourist arrivals

Benefits of cross-border travel between Hong Kong and Shenzhen mainly flow one way.

Hong Kongers are travelling to Shenzhen for cheaper consumption, driving retail sales down 6.5% in the first quarter of 2025 despite rising tourists’ arrivals and spending boost of the city.

Overseas visitors rose 18% in the first quarter to 2.98 million, having the potential to push up retail market as they tend to stay longer and spend more.

The city also held major events such as Hong Kong Sevens tournament and four sellout concerts by rock band Coldplay to attract visitors from around the Asia Pacific region.

Mainland visitors tend to increase spending in the rest of the year as the Chinese government is expected to lift the number of Mainland residents who can get multi-entry visas to Hong Kong.