Hong Kong government continues tourism drive as Chan Chi-yuen argues city's international status more important than tourism policy

Since May 2024, when Xia Baolong, director of the Hong Kong and Macao Affairs Office, called for establishing the concept that Hong Kong should be "a place for tourism everywhere", the Hong Kong government has been driving tourism development. By the end of 2024, it published the "Tourism Development Blueprint 2.0", outlining various strategies for Hong Kong's tourism development. According to Tourism Board statistics, visitor arrivals to Hong Kong reached 20m in the first five months of this year, with Chinese tourists accounting for about three-quarters of the total, an increase from last year.

However, compared with the tourism peak in 2018, visitor arrivals to Hong Kong still lag considerably. Recent controversy has emerged over Chinese tourists' popular "budget travel" to Hong Kong. Chan Chi-yuen, former Hong Kong political assistant and founder of local cultural tourism enterprise Walk in Hong Kong, said in a July 17 interview with radio programme Summit: "If a city lacks a unique positioning, it will naturally be replaced."

Chan Chi-yuen: High international status naturally attracts large numbers of tourists, previously succeeded through popular culture

Hong Kong's status as an international metropolitan city has declined in recent years, with many multinational companies no longer using Hong Kong as their headquarters, while Chinese companies no longer regard Hong Kong as their gateway. Chan pointed out: "Historically great tourism cities, besides having historical monuments and traditional establishments, usually also hold important international status. For example, Venice was historically a shipping centre for various countries, naturally attracting large flows of people, but as other shipping routes developed, it could only be downgraded to a tourism city. Therefore, beyond photo opportunities, there is also a need to establish a unique position that makes many people have to go there, and tourists will naturally increase."

Chan: Commercial headquarters leaving Hong Kong reduces high-spending overnight quality tourists

Previously, large numbers of international conferences chose to be held in Hong Kong, attracting substantial business and high-spending clientele. Chan said: "These customer groups may not choose to go to Hong Kong for tourism, but one person's daily consumption might equal that of a thousand 'foot soldiers' in a day. But after the pandemic, these customer groups have decreased significantly, with many multinational company headquarters choosing to withdraw and not considering establishment in Hong Kong."

He concluded: "We should think about what makes a city unique in its region and the world. As Hong Kong's role begins to change and it is no longer the window for exchange between East and West, Hong Kong's tourism industry naturally needs to change strategy."

Soft power

Chan further added: "When a city has cultural soft power, it will naturally attract many tourists. Since the 1960s drive to develop Hong Kong's tourism industry, Hong Kong happened to be the centre of popular culture industry, producing more than 300 films annually, leading Asia and even countries worldwide. Even now, past film and television works remain the best promotion for Hong Kong's tourism industry, but unfortunately the most advanced popular film and television production base is no longer Hong Kong."

When asked how Hong Kong could redevelop new intellectual property to attract tourists amid fierce competition in today's popular culture industry, Chan cited the example of the Rubber Duck that previously visited Hong Kong and Kaohsiung: "Even with the same rubber duck, in Kaohsiung you could see the entire city cooperating with this IP for promotion, such as public transport vehicles featuring rubber ducks, and restaurants also using rubber duck meals as attractions. Hong Kong does not necessarily need to develop local IP independently, but must mobilise collectively, with government and all sectors cooperating in promotion, to develop cultural brands and create unique impressions."

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Sinic Analytica is a UK-based advisory firm that brings together expertise from the United Kingdom, Canada, the United States, Singapore, and Taiwan, specializing in political-economic analysis.