Hong Kong’s tourism industry, once a thriving pillar of its economy, is still struggling to recover to pre-pandemic levels. By way of response, Chief Executive John Lee Ka-chiu’s latest Policy Address outlined several bold initiatives aimed at revitalizing the sector. These proposals, such as promoting yachting tourism, targeting affluent Middle Eastern travelers, and slashing liquor taxes, offer a glimpse into how Hong Kong could reshape itself as a destination for high-end global visitors. The goal is clear: to create a city where “every corner is a tourist spot” and to attract discerning travelers from around the world.
The new Policy Address, themed “Reform and Embrace Changes to Achieve Prosperity”, places a strong emphasis on driving Hong Kong’s development forward. Among the key areas of focus is the tourism industry, where officials like Culture, Sports and Tourism Secretary Kevin Yeung Yun-hung have been working to introduce new measures. These efforts aim not only to reinforce Hong Kong’s traditional tourism appeal but also to introduce innovative tourism products and policies that could enhance the city’s competitive edge globally.
One of the most intriguing proposals is the development of yachting tourism. The plan includes expanding parts of the Aberdeen Typhoon Shelter, utilizing the former Lamma Quarry site, and repurposing waterfront areas near Hung Hom station to promote yachting-related activities. Yachting tourism has gained significant popularity in recent years, particularly in neighboring countries like Singapore, Thailand, Japan and South Korea, where superyacht berths are rapidly increasing.
Hong Kong, with its long coastline and numerous islands, is well-positioned to capitalize on this trend. By addressing the city’s current shortage of yacht berths, the special administrative region government can attract high-end travelers seeking luxury experiences on the water. Further investment in high-end island tourism could also ensure that this influx of yachting enthusiasts translates into economic benefits for the city.
Besides yachting tourism, more and more affluent Middle Eastern visitors have been coming to Hong Kong in recent years. Research suggests that by 2028, there could be as many as 250 million Muslim travelers globally, contributing an estimated $225 billion to the tourism economy. Recognizing this potential, the Policy Address includes several measures aimed at making Hong Kong more appealing to Middle Eastern and Muslim visitors. These initiatives include providing Arabic-language information at the airport, encouraging taxi services to offer Arabic-language support, and compiling a comprehensive list of halal restaurants.
While these are important first steps, much more needs to be done to fully establish Hong Kong as a Muslim-friendly tourist destination. The government should increase public awareness of Muslim culture and customs through education campaigns and offer incentives for more restaurants to provide halal options. Additionally, installing prayer rooms in large public spaces would enrich the experience for Muslim visitors, making Hong Kong a more welcoming destination and encouraging them to spend more during their visits.
The government’s efforts to refresh and modernize Hong Kong’s tourism offerings are commendable, but the real test will be in execution. If the city succeeds, it will not only regain its pre-pandemic vibrancy but also transform itself into a premier destination for high-end global travelers
As an international city, Hong Kong’s high costs — particularly for luxury goods like liquor — have been a deterrent for some travelers. Understanding this, the Policy Address includes a significant reduction in liquor taxes. Effective immediately, the duty on imported spirits priced over HK$200 ($25.70) has been slashed from 100 percent to just 10 percent. This move will make it more affordable for visitors to enjoy a wide range of fine spirits and wines during their stay, while also making Hong Kong a more attractive destination for food and wine festivals.
The reduction in liquor taxes is not just about making drinks cheaper. It has the potential to drive growth in the tourism, dining, and retail sectors, while also positioning Hong Kong as a global hub for premium liquor sales. Iconic brands like Moutai and fine whiskies could find new opportunities here, creating substantial business prospects and generating employment. The economic impact of this tax cut could, in fact, lead to what economists call the “Laffer curve” effect: reducing taxes to increase overall tax revenue through higher consumption.
A thriving tourism industry needs a robust transportation network to support it. One of the key projects mentioned in the Policy Address is the development of the Kai Tak smart green collective transport system. This project, which is now expected to be completed three years ahead of schedule, will significantly improve accessibility to the Kai Tak Cruise Terminal. For years, the cruise terminal’s poor connectivity has been a major source of frustration for both visitors and industry professionals. By expediting the completion of this transport system, Hong Kong can offer cruise passengers a seamless and modern travel experience.
However, transportation improvements alone won’t be enough. The government must also think creatively about how to better utilize the cruise terminal and its surrounding facilities. Enhancing the overall experience for visitors — whether through better shopping options, dining experiences, or cultural attractions — will be key to ensuring that visitors leave Hong Kong with a lasting positive impression.
Hong Kong is at a critical juncture. As the global tourism landscape evolves, the city must adapt to new trends and cater to a more diverse range of travelers. Yachting tourism, appealing to Middle Eastern visitors, reducing liquor taxes, and enhancing transport infrastructure are all steps in the right direction. But these initiatives must be part of a broader, long-term strategy to ensure that Hong Kong remains a world-class destination.
The government’s efforts to refresh and modernize Hong Kong’s tourism offerings are commendable, but the real test will be in execution. If the city succeeds, it will not only regain its pre-pandemic vibrancy but also transform itself into a premier destination for high-end global travelers. The stakes are high, but with the right mix of innovation, investment, and collaboration, Hong Kong can once again become a beacon of global tourism.
The author is the convener at China Retold, a member of the Legislative Council, and a member of the Central Committee of the New People’s Party.
The views do not necessarily reflect those of China Daily.
