Number of mainland Chinese tour groups arriving in Hong Kong grew every month this year, but most low-cost, indicating visitors unlikely to spend big

The number of mainland Chinese tour groups arriving in Hong Kong has grown every month this year, but most have been low-cost, indicating the visitors are unlikely to spend big during their stays.

Secretary for Culture, Sports and Tourism Kevin Yeung Yun-hung on Wednesday said 38,981 tour groups from the mainland visited between January 1 and November 15 this year, without providing a comparison with pre-pandemic levels.

But tourism lawmaker Perry Yiu Pak-leung pointed out that tour groups made up only a small proportion, about 10 per cent, of the city’s mainland visitors.

Tourism chief Kevin Yeung promises to enhance immigration clearance efficiency at border crossings through upgraded facilities and technology. Photo: Jonathan Wong

“In fact, we have been attracting a lot of people through MICE,” Yiu said, referring to the meetings, incentives, conferences and exhibitions sector.

The latest figures have again raised questions over the type of tourists the city hopes to attract to sustainably develop the industry, which is one of the four pillars of the economy.

Yeung provided the numbers, which show an upwards trend from the start of the year when cross-border pandemic-related travel restrictions were fully lifted, in response to lawmaker Chan Yuet-ming’s question about inbound tour groups.

The number of tours from across the border peaked in October at 6,087, a 35.8 per cent jump from 4,482 the month before, amid the mainland’s week-long National Day holiday beginning on September 29.

The trend spilled over into the first 15 days of November when 3,278 tour groups arrived.

A breakdown of the groups showed the cheapest tours – those costing 500 yuan (US$70) or less – dominated the market.

On a monthly basis, those groups accounted for at least 30 per cent of tours across the year. In September, low-cost tours made up 43.6 per cent of the month’s total of 4,482.

Over the 11-month period, the groups charging 500 yuan or less accounted for 39 per cent of all tours, with those costing 1,000 yuan or lower making up 63 per cent.

Across all price levels, most tour groups came from Shenzhen.

Shoppers in Tsim Sha Tsui. The Tourism Board has revised its full-year visitor forecast to more than 30 million people. Photo: Yik Yeung-man

Most groups arrived via Hong Kong’s land crossings, especially the new Heung Yuen Wai-Liantang checkpoint, and departed using the Hong Kong-Zhuhai-Macau Bridge.

Yeung also promised to enhance immigration clearance efficiency at border crossings through upgraded facilities and technology.

The Tourism Board earlier revealed that 26.78 million tourists visited the city in the first 10 months of the year, exceeding its full-year forecast of 25.8 million.

Its latest forecast for the total number of tourists arriving in the city is more than 30 million for the whole year, which is still less than half the figure for the record-setting 2018.

Authorities aim to attract more visitors by hosting mega events in coming months as the economy grows at a slower rate than expected.

Despite the tour group numbers climbing every month in 2023 to date, retail sales have not followed suit, according to government statistics.

In January, retail sales stood at HK$36.1 billion (US$4.6 billion), before the border with the mainland reopened fully. Despite those restrictions being lifted the following month, the number only reached HK$33.1 billion in February and HK$33.5 billion in March. Retail sales in September, the latest available figure, stood at HK$31.7 billion.