Pre-pandemic visitor gap shadows hotel sector's 10.5% growth target

The sector faces a steep climb as tourist volumes sit 20.8% below previous highs.

Hong Kong’s hotel industry is forecast to grow revenue at a 10.5% compound annual growth rate through 2030, as international visits rose 11.7% in the first half of 2025, though volumes remained 20.8% below pre-pandemic levels.

The luxury segment rebounded, with the average daily rate (ADR) matching 2018 highs at $2,145. However, mid to lower tier hotel ADR fell 10.8% year-on-year to $1,220, according to an Atiom report.

Meanwhile, operational pressure persisted, with staff turnover ranging from 31% to 73%, resulting in higher recruitment and training costs, as well as inconsistent service delivery.

A government report also notes a digital skills gap and slow tech adoption amongst frontline staff, the report added.

The industry recorded approximately $11b (US$1.4b) in revenue in 2024, with average revenue per guest at $2,409.67 (US$309).

US$1 = $7.80