BLOOMBERG – Hong Kong has failed to reclaim its attraction as a global shopping paradise since the city reopened earlier this year, highlighting the economic damage left by years of seclusion.
Tourists are not flocking to Hong Kong in the same numbers as they were before demonstrations in 2019 and subsequent restrictions in the years that followed rendered the city a no-go zone.
Visitor arrivals in June were 42 per cent below the same month in 2018. The result is weak consumer spending. The value of retail sales that month were the lowest for any June since 2011, after stripping out 2019-2022 figures.
The picture is a markedly different one from the last decade, when ever-rising numbers of mainland tourists crowded the city’s streets and clamoured for luxury goods. In 2018, visitor arrivals totalled 65 million, up 11 per cent from the previous year, putting Hong Kong among the most popular tourist destinations globally. That year, the city held the crown for having the world’s most expensive retail district as international brands competed to get a slice of that spending, a title it has since lost.
Hong Kong’s fading allure as a shopping hub is one of a number of challenges the former British colony faces as it seeks to resuscitate its economy and global image. Its historically vibrant finance sector is shedding jobs amid a dearth of deals, while office rental prices have plunged after some businesses moved to Singapore.
Many mainland tourists now prefer local cafes and restaurants as opposed to shelling out for fine dining and luxury goods, according to Hong Kong Federation of Restaurants and Related Trades President Simon Wong.
