Hong Kong Pivots To Mega Events

June 11,2025

Business And Management

Hong Kong Reimagines its Future, Courting Global Events to Revive Fortunes

Hong Kong is actively seeking fresh avenues to attract affluent globetrotters, as the city works to restore its image and expand its visitor base. The destination's reputation, affected by a clampdown on security, large-scale protests, and stringent health measures, is now the catalyst for a concerted push to appeal beyond budget-conscious travellers arriving from the Chinese mainland who have recently dominated the visitor landscape. This strategic pivot aims to recapture the city's former glory as a premier global hub, not just for finance, but for culture, sport and high-value tourism.

The city’s administration recognises the urgent need for this transformation. A recent trend, dubbed "special forces tourism," has seen a surge in mainland Chinese visitors engaging in rapid, low-cost day trips. These travellers, armed with social media itineraries, prioritise photo opportunities over shopping sprees, a stark contrast to the high-spending patterns of the past. This shift poses a significant challenge to an economy historically reliant on tourist expenditure.

The Rise of the 'Special Forces' Traveller

A new type of visitor is making their presence felt in the city of Hong Kong. Two siblings visiting from China's southwestern region recently exemplified this phenomenon. Their itinerary was meticulously planned to maximise experiences within a tight 12-hour timeframe. Hu Di, a 30-year-old bank employee, and her sister, Hu Ke, a 20-year-old student, carried only small bags. They sampled local cuisine, captured sunset photographs along the harbour's walkway, and documented the city's vibrant nocturnal skyline. Their souvenir purchases were modest, consisting of therapeutic balms and vintage comics, with total spending under the equivalent of £120. They returned over the border into the mainland to sleep.

These siblings are emblematic of a growing movement of independent mainland travellers who pride themselves on speed and frugality. While arrivals from the mainland account for a significant majority, over 75 percent, of all arrivals, their spending habits have evolved. The days of lavish purchases on luxury goods have given way to more restrained expenditure, challenging the city's economic revival efforts. This new reality forces Hong Kong to rethink its strategy and find new ways to engage a changing demographic.

Image Credit - CNN

A New Blueprint for Tourism

In response to these shifting dynamics, Hong Kong has unveiled an ambitious new strategy. The government's "Development Blueprint for Hong Kong's Tourism Industry 2.0," launched in late 2024, outlines a vision to establish the metropolis as a "world-class premier tourism destination." This comprehensive plan moves beyond the traditional focus on retail, instead branding Hong Kong as the region's preeminent capital for major events. The strategy is to leverage concerts, trade exhibitions, and international sporting contests to give tourists compelling reasons to extend their stays and increase their spending.

This pivot is already showing tangible results. Visitor numbers are on an upward trend. The first quarter of 2025 saw 12.2 million arrivals, a 9% year-on-year increase. By April 2025, cumulative arrivals for the year had reached 16 million. Projections for the full year estimate a total of 45 to 46 million visitors. While this is a significant improvement, it still falls short of the record 65 million visitors welcomed in 2018, highlighting the scale of the recovery task ahead.

Investing in World-Class Venues

Central to this new vision is a substantial investment in infrastructure. The city recently inaugurated an athletic complex valued at £3.2 billion on the location of the former airport, Kai Tak. The flagship venue is a striking violet-themed stadium with a capacity of 50,000, complete with the modern comfort of air-conditioning under every seat. This new facility was showcased to the world when it hosted the yearly Rugby Sevens competition at the end of March, drawing near-capacity crowds and enthusiastic international visitors.

Salome Bale, a 49-year-old New Zealand pharmacy employee, was one of many overseas guests impressed by the new venue. She described the cutting-edge amenities and the electric atmosphere as creating a once-in-a-lifetime experience. The stadium’s retractable roof was later used as a canvas for kaleidoscopic visual projections over four completely booked concert nights featuring the group Coldplay, further cementing its status as a premier entertainment destination. A packed calendar of events featuring talent from the locality and the wider continent continues to draw crowds.

Image Credit - Partner Net

Fuelling the Events Economy

The government is actively nurturing this nascent events economy through direct financial support. A program known as the "Mega Arts and Cultural Events Fund," established in 2023, pledges up to £1.5 million in financial assistance for qualifying projects. This fund has already supported a diverse range of projects, from sculpture exhibitions to international art fairs, aiming to enrich the city's cultural landscape and attract a global audience. High-profile sporting fixtures, including a showcase game which featured the popular football club Manchester United, have also received government backing.

These initiatives are already bearing fruit. In 2024, Hong Kong hosted over 240 events, attracting more than two million visitors and generating approximately £760 million in consumer spending. Projections for the first half of 2025 are even more optimistic, with events expected to draw 840,000 tourists and contribute £260 million to the economy. Rosanna Law, who is the city's new head of culture, sports and tourism, has articulated a clear message of welcome, expressing a hope that visitors will rediscover their affection for the city.

The Challenge of Regional Competition

Despite these positive steps, Hong Kong faces stiff competition from other major Asian cities. Destinations such as the cities of Singapore and Bangkok have long been successful in attracting A-list stars, major industry conventions, and prestigious sporting tournaments. Gary Bowerman, director of the travel research firm Check-in Asia, notes that the similarity in strategy among these urban centres presents a primary difficulty for Hong Kong as it seeks to carve out a unique identity.

Singapore, in particular, has committed significant resources to its events infrastructure and has secured confidential contracts with global superstars such as the singer Taylor Swift. While such marquee events provide a significant short-term boost to tourism, experts caution against over-reliance. Donald Low, an instructor at the Hong Kong University of Science and Technology, points out that securing such high-calibre performers is not a yearly guarantee, and their impact is limited to a few days.

Navigating Reputational Headwinds

Beyond regional competition, Hong Kong must also contend with a more challenging international reputation. Travel advisories from America, the UK, and other Western allies warn of risks following Beijing's imposition of a state security act from 2020. The law, which criminalises a broad range of dissenting political activities, has created apprehension among some potential visitors. Stuart Bailey, who is the head of the Hong Kong Exhibition and Convention Industry Association, has observed negative perceptions concerning the metropolis among many business contacts on the European continent and in the United States.

He believes the events-led strategy is the proper approach to counter these misunderstandings and reposition Hong Kong on the global map. Officials are keen to allay these concerns. Ms Law has defended the city's openness, stating that law-abiding and genuine tourists will have an excellent time. The strategy aims to showcase a vibrant and welcoming metropolis, thereby improving its global standing through positive exposure and direct experience.

Diversifying a Visitor Base

In its quest for high-value tourism, Hong Kong is looking beyond its traditional markets. The metropolis is currently courting affluent visitors from the Middle East and the region of Southeast Asia, promoting special travel packages and luxury experiences. This diversification is crucial for building a more resilient tourism sector. The metropolis is additionally embracing its role within the Greater Bay Area, a megalopolis that includes Macao and nine cities in Guangdong province. The plan is to promote multi-destination tours that leverage the unique attractions of the entire region.

This regional integration is seen as a key growth driver. By partnering with mainland authorities, Hong Kong aims to attract visitors for longer, more immersive trips that explore the cultural and economic dynamism of the Greater Bay Area. This collaborative approach seeks to position Hong Kong not just as a standalone destination, but as a gateway to a vast and diverse region of over 86 million people.

Image Credit - The Standard

A Two-Way Street

The drive to attract more inbound tourists has become increasingly urgent as a growing number of Hong Kong’s own citizens now travel to the mainland for more affordable leisure and entertainment. During the Golden Week holiday in early March, which lasts five days, while 1.1 million visitors came into Hong Kong, over 1.68 million inhabitants departed the city, many heading north for better value. This outflow highlights the economic pressures on local businesses and underscores the importance of a thriving inbound tourism market.

This exodus puts pressure on the local retail and hospitality sectors, which have already been grappling with a slow recovery. Michael Denmark, who runs the giant Ferris wheel at the city's waterfront, emphasised the need to build strong relationships with incoming visitors. He noted that approximately 85 per cent of the attraction's 2.5 million patrons in the last year originated from mainland China, primarily from the Greater Bay Area region which encircles Hong Kong.

Testing the Market for Higher Spending

Businesses are actively testing the appetite for more premium attractions. Mr Denmark is at present co-producing a month-long show by the celebrated Cirque du Soleil. The admission fees for this event, ranging from £48 to £200, are a significant step up from the sponsor-subsidised £2 fare for a ride on the attraction. The production is a calculated risk, designed to gauge whether the new wave of visitors can be converted into higher-spending patrons.

To ensure its success, the show is being marketed aggressively through partnerships alongside Chinese travel and social media firms. Specialized promotional teams are targeting different audience segments, including travellers from across China. Mr Denmark observed that corporate sponsors are embracing this new reality, with their arms wide open to welcome visitors from the Greater Bay Area and beyond. This proactive approach from the private sector, aligned with the government's strategic vision, signals a determined effort to reshape Hong Kong's tourism landscape.

Economic Realities and Future Outlook

The economic contribution of tourism is a critical metric for the city's success. During the 2023 year, the sector accounted for 2.6% of Hong Kong's GDP, providing nearly 150,000 jobs. While this represents a post-pandemic recovery, it is a long way from the government's target of 5%, a level that would surpass pre-pandemic contributions. The path to this target is fraught with challenges, including a retail sector that has faced significant headwinds. Total retail sales declined by 6.5% year-on-year in the first quarter of 2025.

However, there are pockets of resilience. Sales of medicines and cosmetics have shown growth, reflecting a shift towards health and personal care. The government's economic forecast for 2025 projects overall growth of 2% to 3%, supported by initiatives to boost economic activity. The long-term outlook remains bright, with officials confident that Hong Kong's unique position as a gateway to China, combined with its global advantages, will drive sustained growth and prosperity.