What: Hong Kong’s tourism recovery is marked by rising visitor numbers but declining per-capita spending, as value-conscious mainland Chinese tourists prioritise experiences over shopping.

Why it is important: Hong Kong’s experience highlights how rising visitor numbers no longer guarantee retail growth, as value-conscious tourists and changing travel patterns reshape spending behaviour.

Hong Kong is seeing a rebound in tourist arrivals, with numbers climbing to nearly 50 million in 2025, yet the average amount spent per overnight visitor has dropped significantly compared to pre-pandemic levels. The shift is driven largely by mainland Chinese travellers, who now make up more than three-quarters of all visitors and increasingly favour affordable, experiential attractions—like the city’s iconic tram network—over luxury shopping. This trend has led to a disconnect between foot traffic and retail sales, with categories such as jewellery and watches showing only modest gains while broader retail segments continue to struggle. Despite government efforts to revive tourism through mega-events and influencer campaigns, the rise of value-conscious, lower-spending tourists and competition from mainland China’s own leisure offerings are reshaping the city’s retail landscape. For Hong Kong’s retailers and tourism operators, the new reality is that attracting more visitors is no longer enough; adapting to evolving consumer behaviours and innovating beyond traditional shopping-driven models is now essential for sustainable growth.

IADS Notes: Hong Kong’s retail sector is undergoing a profound transformation as rising visitor numbers no longer guarantee proportional retail growth. As reported by the Financial Times in May 2025, the emergence of “special forces” tourists from mainland China—budget-conscious day-trippers who prioritise sightseeing over shopping—has led to a sharp decline in per-visitor spending, with average day-tripper expenditure dropping from HK$2,400 in 2018 to just HK$1,300. Retail Asia (March 2025) and Fashion Network (September 2025) confirm that, despite government efforts such as multiple-entry visas for Shenzhen residents and mega-event promotions, retail sales have remained subdued, with December 2024 sales falling 9.7% year-on-year even as visitor arrivals increased by 24%. Inside Retail (June 2025) highlights that April marked the fourteenth consecutive month of retail sales decline, underscoring a persistent disconnect between foot traffic and spending. While luxury categories like jewellery and watches have shown some resilience, broader retail segments—especially apparel and footwear—continue to struggle. The strong Hong Kong dollar has further complicated the landscape, encouraging locals to shop across the border and deterring tourist purchases. As the South China Morning Post noted in October 2025, even with seven consecutive months of retail sales growth, the sector’s overall performance remains flat, highlighting the need for innovation and strategic adaptation. Collectively, these sources illustrate that Hong Kong’s retail recovery is fragile and uneven, with structural changes in consumer behavior, intensified regional competition, and evolving travel patterns requiring retailers to rethink their reliance on traditional tourist shopping and invest in experience-driven, adaptive retail models.

In HK, tourists are looking for cheap experiences