The turnover of Hong Kong’s hotel sector remains below pre-pandemic levels despite more than 33 million tourists visiting the city between January and August, an industry representative has said.
Hotels in Hong Kong are grappling with rising operational costs and the impact of China’s economic downturn, with mainland Chinese tourists opting for short stays in the city, Caspar Tsui, executive director of the Federation of Hong Kong Hotel Owners, said on an RTHK radio programme on Wednesday.
Secretary for Culture, Sports and Tourism Rosanna Law announced on Monday that Hong Kong saw a 12 per cent increase in the total number of visitors in the first eight months of the year compared with the same period last year. The city also welcomed 5.15 million visitors last month, a 16 per cent increase compared with August last year, she said.
Tsui, who served as home affairs minister until 2022, said hotel revenue was more important than its occupancy rate, which he said did not change much compared with summer last year. The revenue of the hotel industry still failed to reach the level before the Covid-19 pandemic, he said.
While major events such as the Hong Kong Football Festival and various concerts held at Kai Tak Stadium had boosted the turnover of hotels in the area, visitors seemed to have “forgotten about” the “traditional [tourism] districts.”
Tsui cited family visitors who preferred staying on the Kowloon side and did not travel to Hong Kong Island. There was a “misconception” that Hong Kong Island was only appealing to business visitors, he said.
More promotions are needed to attract these tourists to other parts of Hong Kong to improve the overall performance of the tourism sector, Tsui suggested.
“Kai Tak is a new district. We let tourists know about this new place, but we should also rely on it to boost tourism in other areas such as Tsim Sha Tsui and Hong Kong Island,” he said.
The hotel industry and other service sectors focus on tourists who stay overnight in the city because they tend to have high spending power, Tsui said. These sectors also pay attention to whether visitors are staying in Hong Kong or only “passing by to get to mainland China.”
Many mainland Chinese tourists tend to stay in Hong Kong for a short period of time, while some may even decide whether or not to stay overnight on the day, Tsui said.
The city is also facing more competition as China has expanded visa-free arrangements with many countries and regions, resulting in little growth in local hotel prices, he said.
Tsui anticipated that Hong Kong would welcome many mainland Chinese tourists during China’s National Day Golden Week next month.
It remains to be seen whether hosting eight sports events at the 2025 National Games will help boost tourism in the city, he said.
