Hong Kong losing competitive edge in tourism as Chinese go elsewhere
A monthly report released by the Hong Kong Tourism Board shows that the number of visitors from China increased by 5% month-on-month in May, although that figure was mostly driven by same-day visitors. During the same period, overnight visitors only increased by 1.1% in May. The focus of Chinese tourists appears to be shifting to European locations such as France and Germany.
A monthly report released by the Hong Kong Tourism Board shows that the number of visitors from China increased by five percent month-on-month in May, although that figure was mostly driven by same-day visitors.



No-one mention parallel traders, please. Whoops!



At the same time, overnight visitors only experienced a very modest 1.1 percent growth in May compared to 6.7 percent in April.



An article published by OC&C Strategy Consultants suggests that Hong Kong and Macau could be losing the ability to attract tourist money as both are seeing lower arrivals and spending numbers.



The focus of Chinese tourists appears to be shifting to European locations such as France and Germany.



This is a concerning development for Hong Kong’s tourism industry, considering that the number of Chinese people travelling abroad has recently risen dramatically, topping 100 million for the first time last year.



That number is expected to grow to 200 million by 2020, contributing to China’s number one world ranking of global tourism expenditure at HKD1.55 trillion this year.



The total expenditure of Chinese outbound travellers also reached HKD4.7 trillion last year, which is more than the total household consumption expenditure of entire countries, such as Indonesia and Turkey.



Despite the growing number of tourists worldwide, it appears that per person spending is failing to catch up. This is believed to be due to travel being democratised and open to all classes as opposed to catering only to the elites.



Also, luxury brands have lowered pries in China due to exchange rates and import duty cuts, lessening the incentive to shop overseas. All of these factors can contribute to the fall in Hong Kong’s ever-precious tourism statistics.



Photo: IQRemix via Flickr



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