Hong Kong tourism struggles with shorter stays, lower spending

Visitor spending drops 19% in 2024.

Visitor spending in Hong Kong fell by 19% last year, and the Average Length of Stay (ALOS) dropped to 3.2 days from 3.6 days in the first half of 2024, according to Colliers.

Shaman Chellaram, Senior Director of Valuation & Advisory Services at Colliers Hong Kong, highlighted that a key factor behind the drop in visitor spending is “a downward trajectory on spending,” primarily driven by reduced consumer confidence in mainland China.

“Tourists are looking for more, more cost-conscious experience-driven travel,” Chellaram noted.

Dr. Guy Llewellyn, Assistant Professor at EHL Campus (Singapore), noted that 76% of all visitors to Hong Kong come from mainland China, amounting to around 34 million people. The strong Hong Kong dollar, combined with a plateauing Chinese economy, has led to reduced spending from mainland tourists.

“The issue that we’re seeing right now in Hong Kong is that the Hong Kong dollar is still incredibly strong,” Llewellyn explained. He further added that tourists from markets like Taiwan and the Philippines have limited disposable income, contributing to the drop in overall visitor spending.

With fewer visitors spending as much as they did in previous years, hotels are adapting their strategies to attract higher-spending tourists. Chellaram emphasised the importance of online engagement, along with collaborations with event organizers and F&B operators to offer unique experiences for guests.

Dr. Llewellyn advised that hotels should create memorable, unique packages by partnering with local artisans and offering exclusive private dining experiences. “It wasn’t just a weekend in Hong Kong. It was a weekend that they can never replace,” Llewellyn remarked.

He added Hong Kong should be promoted as a gateway city, encouraging long-haul travelers to stay longer by offering incentives such as discounts for extended hotel stays or public transportation.