Since 2023, the Hong Kong Special Administrative Region government has prioritized the development of its mega-events economy as a key initiative to stimulate local consumption and economic vitality. Sustained efforts have yielded initial results. As Chief Executive John Lee Ka-chiu forecast recently, the number of visitors attracted by various major events held in the city could hit 840,000 in the first half of this year, generating HK$3.3 billion ($425 million) in consumer spending and HK$1.8 billion in economic value added.
According to Hong Kong Tourism Board (HKTB) statistics, visitor arrivals in the first two months of this year totaled 8.4 million, marking a year-on-year increase of 7 percent. Visitors from the Chinese mainland accounted for 6.5 million of the total, up 4 percent annually. These figures indicate that the growth rate of overseas visitors to Hong Kong surpasses that of mainland tourists.
In fact, although Hong Kong’s mega-events economy has developed relatively well since the COVID-19 pandemic receded, expectations for an “explosive” growth in mainland visitors and their consumption should be tempered — for three key reasons:
First, the mainland itself faces sluggish consumption as its economy has endured a transition over recent years, wherein old growth drivers have gradually been phased out while new ones have yet to provide momentum to the economy. The continued decline of the real estate sector, coupled with the continuous relocation of labor-intensive manufacturing to Southeast Asia, has created ripple effects across various sectors and contributed to a grim employment landscape. Consequently, while mainland visitors may continue to rise, their per capita spending is unlikely to follow proportionally.
Second, the mainland consumption market has undergone upgrade and optimization, making “Hong Kong shopping” less attractive to mainland residents than previously. After years of continuous optimization of the consumption environment, both product quality and aftersales services have been significantly enhanced, in addition to the convenience afforded by online shopping. Concurrently, the influx of international brands into the mainland market has also diluted Hong Kong’s traditional advantages in product variety.
Third, the Hong Kong dollar’s appreciation against the renminbi has rendered Hong Kong-bound consumption less economically favorable for mainland residents, while making northbound consumption more attractive for Hong Kong residents. This trend has exhibited no discernible indication of a reversal on the immediate horizon.
The advancement of the mega-events economy not only propels Hong Kong’s economic development but also contributes to national economic growth. Hong Kong’s role as a “platform builder” enables diverse actors to perform, thereby enhancing cross-border connectivity and achieving mutual benefit
Recently, the list of the top 10 most popular cities for international tourists in 2024 ranked Hong Kong fourth. In 2024, the city welcomed 10.5 million nonmainland tourists. These figures, published by consulting firm Euromonitor, underscore Hong Kong’s core competitiveness — internationalization, or internationality — which is exactly the central plank of Hong Kong’s mega-events economy, a strategy aimed at achieving the following three objectives:
First, attracting industry elites and high-net-worth individuals to boost consumption. Amid the backdrop of a volatile global landscape, “peace, security, stability, and prosperity” have emerged as critical considerations for investment decisions by businesses. The prestigious international events hosted by Hong Kong have showcased its allure to the world, thereby reinforcing confidence in investing in the city. Financial Secretary Paul Chan Mo-po revealed that as of February 2024, InvestHK has assisted 58 family offices establish or expand operations in Hong Kong, while over 100 others have indicated that they have either decided to set up or are actively preparing to establish or expand their presence in the city. The Office for Attracting Strategic Enterprises has brought over 80 key enterprises to Hong Kong since its establishment in December 2022, and they are expected to create over 20,000 jobs in the coming years.
Second, enhancing Hong Kong’s global reputation for the sake of long-term development. The inaugural Hong Kong Green Week in February 2024 drew more than 5,000 local and overseas delegates; the first Fortune Innovation Forum, staged a month later, demonstrated Hong Kong’s soft power as an international financial hub, garnering massive global attention. The 18th Asian Financial Forum held in January, attracted over 3,600 global financial and business elites; and the recently hosted Art Basel Hong Kong, universally recognized as one of the world’s most representative international art fairs, again sparked widespread acclaim. Each successful hosting of these international events cumulatively elevates the city’s international profile.
Third, strengthening cross-border connectivity to support the nation’s opening-up strategy. The international events hosted by Hong Kong maintain intrinsic connections with the mainland. For instance, financial summits feature participation from heads of national financial institutions; cultural events leverage mainland cultural resources; sports competitions and large-scale concerts attract massive audiences from the mainland; numerous international events represent collaborative achievements between Hong Kong organizers and mainland entities. The advancement of the mega-events economy not only propels Hong Kong’s economic development but also contributes to national economic growth. Hong Kong’s role as a “platform builder” enables diverse actors to perform, thereby enhancing cross-border connectivity and achieving mutual benefit.
HKTB figures reveal that nonmainland visitor arrivals have recorded marked growth during the first two months of this year. Specifically, arrivals from South Korea reached approximately 250,000, representing a 33 percent year-on-year increase; Indonesian visitors totaled around 70,000, reflecting a 45 percent surge. The United States contributed over 140,000 arrivals, up by around 20 percent, while Australia and the United Kingdom accounted for over 80,000 and 50,000 arrivals respectively, demonstrating growth rates of 34 percent and 17 percent. These metrics substantiate Hong Kong’s significant latent capacity in global tourism.
Xia Baolong, director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, urged Hong Kong to fully leverage its abundant local tourism resources and offer more new tourism products in a recent a meeting with Secretary for Culture, Sports and Tourism Rosanna Law Shuk-pui. Indeed, Hong Kong has the advantage of being part of China and an internationalized city. By persistently pushing forward with innovation-driven development, the city will host more high-quality and high-level international events, amplifying the multiplier effects of its mega-events economy for sure.
The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference and chairman of the Hong Kong New Era Development Thinktank.
The views do not necessarily reflect those of China Daily.
