Hong Kong welcomed 10% more visitors during the Christmas period than in 2024, while residents took nearly 1.7 million outbound trips, up 22% from last year. Despite the influx of tourists, merchants warn that the absence of New Year's fireworks could deter visitors and hurt the retail sector. Consumer sentiment has been dampened by last month's deadly Tai Po fire, which killed 161 people.
Hong Kong's tourism sector performed strongly during the Christmas period, with visitor numbers up 10% compared to 2024. At the same time, residents made nearly 1.7 million outbound trips, a 22% increase from last year, reflecting robust demand for travel abroad.
The retail sector, however, faces headwinds. Lawmaker Peter Shiu Ka-fai, who represents the retail industry, said: “Because of the Tai Po fire, consumer sentiment weakened over the past three weeks, affecting overall retail sales.” He added: “Coupled with the trend of residents heading north to spend on the mainland, I believe retail performance [over the Christmas period] may not be as strong as last year.”
Last month's Tai Po fire, Hong Kong's deadliest blaze in decades, claimed 161 lives and cast a subdued mood over the festive season. While sales of essentials like everyday cosmetics were stronger, overall Christmas spending fell short of last year's levels.
Merchants also expressed concerns that the cancellation of the annual New Year's fireworks display could further reduce visitor numbers in the coming days, exacerbating the slowdown in local consumer sentiment.