On June 3, 2024, guests took a group photo at the launch ceremony of the “Let’s Go the Extra Mile” reception event held at the General Office of the Central Government of Hong Kong.
Noor Photos | Noor Photos | Getty Images
Hong Kong requires service staff to be more polite and smiley to win back tourists. But experts say high prices and competition from rising Shenzhen are bigger problems.
The glitzy financial center has long been revered for its luxury shopping, restaurants and nightlife, but visitor numbers have yet to return to levels seen before years of disruption caused by social unrest and the Covid-19 pandemic.
In response, the Hong Kong government launched a “Let us redouble our efforts“- Encourage frontline workers and the public to demonstrate good hospitality and”Reinforce Hong Kong’s brand as a top tourist destination”.
At last week’s press conference, Chief Executive John Lee urges residents Be more polite, smile more and “go the extra mile to promote Hong Kong’s hospitality”.
The move comes after data showed Total inbound tourists reached 24 million In the first four months of this year, it was still only 60% of the same period in 2019.
While these figures represent a significant increase from the previous year, experts warn that the obstacles to a full recovery are greater than grumpy Hong Kongers.
Strong dollar, high prices
“One of the biggest problems in this city is that it’s expensive,” said Stanley Sheng, chairman of Lan Kwai Fong Group, the major property owner and developer of Hong Kong’s iconic Lan Kwai Fong nightlife district.
Hong Kong’s currency is pegged to the U.S. dollar, contributing to Hong Kong’s status as an international financial center. However, this can also make it expensive compared to many other Asian economies, especially with the current high interest rates and economic downturn. The dollar is strong.
“Tourists find that prices in Shenzhen and other places like Japan are very, very cheap in comparison,” said Zeman, who is also an adviser to the Hong Kong government.
This is especially true for mainland Chinese tourists—— RMB depreciates sharply exchange rates against the U.S. dollar and Hong Kong dollar in recent months.
At the same time, Zeman said mainland tourists accounted for an increasing share of the city’s visitors as tourists from other countries were slow to return home. He said this poses a problem for local businesses as mainlanders tend to spend less due to travel preferences, shorter stays and tight budgets amid difficult domestic economies.
Although the Hong Kong Culture, Sports and Tourism Bureau expects visitor numbers to increase this year, spending per person by overnight visitors is expected to fall to HK$5,800 (US$742.64) from HK$6,939 last year. According to figures published in Budget 2024.
Lan Kwai Fong, a popular destination for tourists, was particularly hard hit when Hong Kong’s borders closed during the pandemic.
While Zeman said many businesses in the neighborhood have made a strong comeback, there are still some vacant spaces — a rarity before the pandemic.
Hong Kong people go out to bargain
Instead, economist Li Zhaobao, an honorary fellow at the Asia-Pacific Business School of the Chinese University of Hong Kong, said more and more locals are traveling to the neighboring mainland city of Shenzhen.
“Both are the same problems facing Hong Kong,” he said.
While the city’s borders are closed during the pandemic, nearby Li said Shenzhen continues to develop into a first-class city in China. New high-speed rail and a giant sea-crossing bridge make this journey more accessible than ever.
Shenzhen offers a wide range of food, entertainment and shopping options and can now compete with Hong Kong, Li said, adding that prices of goods and services in Shenzhen are sometimes two to three times cheaper than in Hong Kong.
This dynamic explains why thousands of Hong Kongers flocked to the Shenzhen border in late March for the Easter holiday, Leaving the financial center Restaurants, bars and shopping malls emptyAccording to local media reports.
Throughout March, this city of 7.3 million people 9.3 million residents left from its passenger traffic control station. Government data shows This is the highest number of departures in a single month since at least 1997, when the city was handed over from British rule to China.
At the same time, only approx. 3.4 million tourists came to the city Same month.
These trends are taking a toll on Hong Kong businesses, with retail sales Continued decline According to local media reports Restaurants are closing quickly.
A recent survey conducted by the Hong Kong Small and Medium Enterprises Association showed that 70% of local SMEs in the city reported a decline in operating performance compared with pre-epidemic levels.
In addition to activities such as “Let’s Go The Extra Mile”, the Hong Kong authorities also HK$1.09 billion reserved Citywide events, such as fireworks displays, are held to promote tourism and consumption.
Lee and Lan Kwai Fong’s Zeman said that while the funds would help, fighting high prices and competition from Shenzhen would require a greater effort.
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