Hong Kong’s visitor arrivals jump 31% in 2024

The majority or 34 million people arrived from Mainland China, whilst 10.5 million came from other regions.

Hong Kong’s hospitality sector saw a 31% surge in visitor numbers in 2024, welcoming 44.5 million tourists, according to Colliers.

In its report, Colliers noted that the majority, or 34 million, arrived from Mainland China, whilst 10.5 million came from other regions, including the Philippines, Taiwan, South Korea, the US, Thailand, and Japan. 

Despite this strong influx, the city’s hotel industry faced challenges converting these arrivals into higher revenue.

Meanwhile, occupancy rates rose to 85%, a 3% YoY increase, yet Average Daily Rate (ADR) declined by 4.5% to $1,332.

The Revenue Per Available Room (RevPAR) also saw a slight dip, reflecting a market dominated by cost-conscious, experience-driven travellers.

Key obstacles included rising labour shortages, cost pressures, and weak non-room revenue, particularly in the food and beverage sector.

The investment landscape also remained subdued in 2024, with only five hotel transactions totaling $1.98t, a 60% decline in investment volume compared to 2023.

High interest rates and economic uncertainty restricted buyer activity, though strategic investors showed interest in mid-scale hotels, particularly for conversion into student accommodation.

The year saw a rise in demand for well-priced, rarely traded full-service hotels and serviced apartments, a trend expected to continue into 2025.