Hong Kong is opening up to tourism, but is it too late?

Hong Kong's Tourism Comeback: A Double-edged Sword

"No more tourists," grumbled Mr. Chan as he sat in front of his silver jewelry stand on Tung Choi Street, known for its bustling night market in Kowloon.

Three tough years for him. His store stays open until 11 PM, but since the pandemic, he shuts down at 7 PM. He's hopeful that things will turn around once the quarantine ends, causing such a devastating impact on businesses reliant on tourism.

China's financial hub has recently taken steps to reopen, waiving the 3-day mandatory hotel quarantine and announcing an international bankers' summit in November. It's also planning a "Campaign to Revive Markets", offering 500 billion airline tickets worldwide worth an estimated 255 million USD.

City officials hope these measures will revive Hong Kong's status as an international business and tourist hub. However, some locals question if these changes are coming too late.

Long, Wintery Isolation

The citizens of the city endured two years of harsh pandemic measures. Hawaii-bound travelers still had to quarantine for 21 days in their hotel rooms at their own expense. Even those coming from regions or countries with higher virus cases were sent to government-run facilities.

Domestic and international flights hit record lows due to these restrictions. Once the quarantine rule was lifted past a Friday, travelers flocked to book flights online, with Cathay Pacific setting up a virtual "waiting room" due to wait times reaching up to 30 minutes.

Travel-starved Hongkongers looked forward to their flights, and Expedia reported a 900% increase in Tokio flight searches and an 1100% increase in Osaka flight searches. However, Lavinia Rajaram, Expedia's PR head for Asia, noted that Hong Kong interest had not increased.

Struggling After Shutdown

Despite the lifting of the quarantine, a 3-day waiting period remains to dine out or visit bars. With complicated visitor requirements, such as vaccine certificates and negative tests, these obstacles may deter potential guests.

Hong Kong plans to host the International Rugby Sevens in November, an event that attracts a large international audience. However, with social distancing measures, limited food and beverage options, and mask requirements, it remains unclear how many visitors will attend.

Some Asian neighbors like Japan, Taiwan, and South Korea have been dropping travel restrictions and trying to make themselves more attractive travel destinations.

The looming question is the lasting impact of China's strict Zero-COVID policy. In 2019, when travel was less restricted, over 78% of Hong Kong's visitors came from the Chinese mainland[1].

Too Little, Too Late?

Maxence Traverse, Hong Kong's famed "Gastronome", closed his 9-year-old Honi Honi Tiki Bar after the 2019 protests and the pandemic. He struggled to stay afloat after reopening his restaurant in Tai Hang, and he finds himself worried after witnessing Hong Kong's health minister promise the city would remain open as long as no new virus variants emerged.

Travers is among several food and beverage businesses that permanently closed during the pandemic. Even famous Kowloon restaurants, such as Midu Cafe, Jimmy's Kitchen, and Lin Heung Teahouse, have shut their doors for good.

Will Hong Kong's reopening measures be enough to restore what drew Trailvers to the city 12 years ago?

"We need to create excitement for Hong Kong again," Travers remarked, "because now we've lost a lot."

Data Insights

Since the quarantine ended, there has been a noticeable increase in arrivals. In January 2025, Hong Kong registered 4.74 million visitor arrivals, a 24% rise compared to the previous year, with mainland Chinese visitors accounting for 3.73 million, a 25% increase[2]. However, the tricky part lies in turning this temporary increase into sustained growth, as numbers still lag behind pre-pandemic highs of 65 million in 2018[2][4].

Panda tourism has proven to be a significant draw, especially with the 2-year-old twin pandas at Ocean Park bringing in record-breaking numbers. Additionally, cultural, sports, and tourism events contribute to the city's economic vitality, such as the expansion of the Individual Visit Scheme to 10 additional Chinese mainland cities and the resumption of multientry permits for Shenzhen residents.

However, challenges remain. Mainland China isn't out of the woods yet, and travel restrictions persist. Taiwan, for instance, continues to prohibit organized group travel to the PRC. While mainland cities like Fujian and Shanghai allow group tours, this is limited and may not be enough to fully reinvigorate the tourism industry.[3]

Quarantine periods and lasting memories of strict COVID-19 protocols may also deter potential guests. Additionally, the city's political climate, including a national security law and 2019 protests, may lose appeal for international visitors.

Recommendations

Diversify Tourism Markets: While mainland China remains a crucial market, diversifying to include more international visitors can help mitigate reliance on a single source.

Enhance Cultural and Tourism Events: Continuing to invest in these initiatives can help maintain momentum and attract a broader audience.

Address Economic Challenges: Policies to boost spending by mainland Chinese tourists and encourage international travel can help stabilize the industry.

Strategic Marketing: A well-coordinated marketing strategy that focuses on the city's unique attractions can draw more visitors and sustain growth.

By addressing these challenges and leveraging opportunities, Hong Kong can potentially achieve sustained growth in its tourism sector.

Further Reading

Sources:

Enrichment Insights

*Hong Kong's plan to attract back tourists after COVID-19 restrictions is multifaceted but faces several challenges. Here’s a breakdown of the effectiveness and the potential barriers:

Positive Developments:

1. Visitor Arrivals: Despite the challenges, Hong Kong has seen a significant increase in visitor arrivals. In January 2025, the city registered 4.74 million visitor arrivals, a 24% rise year-on-year, with mainland Chinese visitors accounting for 3.73 million, a 25% increase year-on-year[2]. This growth momentum is sustained across various markets, including the Philippines, Indonesia, China’s Taiwan region, South Korea, and Australia[2].
2. Panda Tourism: The introduction of baby pandas at Ocean Park Hong Kong has sparked interest and is seen as a potential game-changer for tourism. The public debut of the twin six-month-old panda cubs has already led to increased visitation, with attendance approaching pre-pandemic numbers[4].
3. Cultural and Tourism Events: Cultural, sports, and tourism events are playing a significant role in boosting the city's economic vitality. Initiatives like the expansion of the Individual Visit Scheme to 10 additional Chinese mainland cities and the resumption of multientry permits for Shenzhen residents have contributed to significant growth in visitor arrivals[5].

Challenges and Barriers:

1. Reliance on Mainland China: Hong Kong's tourism industry is heavily reliant on visitors from mainland China. However, economic challenges, including reduced spending by mainland Chinese tourists, have impacted the sector[4].
2. Travel Restrictions: The COVID-19 pandemic and subsequent travel restrictions have left a lasting impact. While Taiwan has ended COVID-related travel restrictions, it continues to prohibit organized group travel to the PRC, and there are ongoing disputes about cross-strait travel routes[3]. This piecemeal approach to reopening travel, such as allowing Fujian and Shanghai residents to arrange group tours, may not fully address the issue[3].
3. Quarantine Periods: Although quarantine periods have largely been lifted, the memory of strict COVID-19 protocols may still deter some travelers. The imposition of a national security law and the 2019 protests have also reduced the city’s appeal to international travelers[4].
4. Sustained Growth: The real challenge is turning the temporary increase in visitors into sustained growth. Despite recent upticks, numbers remain significantly lower than the pre-COVID-19 highs of 65 million in 2018[1][4].

Conclusion

Hong Kong’s plan to attract back tourists is showing signs of effectiveness, particularly with the rise in visitor arrivals and the success of panda tourism. However, the city's reliance on mainland China and the lingering effects of travel restrictions and economic challenges pose significant barriers to sustained growth. A broader strategy that addresses these issues is necessary to fully revitalize the tourism industry.

Recommendations

1. Diversify Tourism Markets: While mainland China remains a crucial market, diversifying tourism markets to include more international visitors can help mitigate reliance on a single source.
2. Enhance Cultural and Tourism Events: Continued investment in cultural and tourism events can help maintain momentum and attract a broader audience.
3. Address Economic Challenges: Economic policies aimed at boosting spending by mainland Chinese tourists and encouraging international travel can help stabilize the industry.
4. Strategic Marketing: A well-coordinated marketing strategy focusing on the unique attractions of Hong Kong, such as panda tourism, can help attract more visitors and sustain growth over time.

By addressing these challenges and leveraging opportunities, Hong Kong can potentially achieve more sustained growth in its tourism sector.