Hong Kong Retail and Hospitality Sectors See Uptick During Labor Day Holiday Despite Net Outflow of Residents

5 May 2025

For Monday, the last day of the holiday, the number of inbound trips stood at 534,600 by 9pm, with 104,000 being made by visitors. Photo: Nora Tam

HONG KONG - Hong Kong’s retail and restaurant industries experienced a notable surge in activity during mainland China’s Labor Day “golden week” holiday, despite the city recording a net outflow of residents. Data from the Immigration Department revealed that from Thursday to Sunday, inbound trips totaled nearly 988,000, with mainland tourists comprising approximately 84 percent of arrivals. Although this figure marked a 24 percent increase compared to last year, it remained below the pre-pandemic levels recorded in 2019.

Over the same period, Hong Kong residents made approximately 1.4 million outbound trips, reflecting a continued trend of net population movement out of the city during holiday periods.

Industry representatives, however, reported positive business momentum. Chung Pok-man, vice-chairman of the Hong Kong Department Stores and Commercial Staff General Union, noted frontline staff observed foot traffic increases of up to 30 percent, with bustling activity across established districts such as Yau Tsim Mong and emerging hubs like Kai Tak. Chung attributed this growth to several factors, including the expansion of the Individual Visit Scheme (IVS), which now encompasses 59 mainland cities, enabling more mainland tourists to visit Hong Kong independently without tour groups. The lengthened holiday period, five days this year, also facilitated travel from cities located farther from Hong Kong.

Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, provided a more measured assessment, citing a 5 percent increase in business compared to last year but confirmed a marked rise in mainland visitor numbers. Wong highlighted that many visitors stayed multiple days, leading to higher on-street tourist concentrations at peak times. He also observed that affordable dining establishments benefited most, as mainland tourists tend to favor local eateries over high-end venues, which suffered amid an exodus of local patrons travelling abroad.

Popular leisure destinations such as Sai Kung gained traction, partly driven by social media exposure on mainland platforms promoting outdoor activities like the High Island Reservoir hiking trail. Observers noted a corresponding rise in police presence, with crowds predominantly composed of mainland tourists.

Commercial landlords capitalized on the holiday’s momentum. Sun Hung Kai Properties reported near double-digit percentage growth in foot traffic and sales at its malls, attributing gains to both local residents and a robust influx of mainland shoppers attracted by targeted promotions. The company implemented experiential retail initiatives, including a pop-up Korean cartoon-themed store featuring a designer meet-and-greet, and opened the Causeway Bay wwwtc mall observation deck to showcase the Tourism Board’s drone show over Wan Chai harbourfront on Labor Day.

Maureen Fung Sau-yim, Sun Hung Kai’s executive director, also credited Mother’s Day promotions at residential area malls with enhancing consumer sentiment during the holiday period.

In summary, while the net migration of locals during peak travel periods remains a challenge, Hong Kong’s retail and hospitality sectors are demonstrating resilience and adaptability, buoyed by strategic initiatives and the steady return of mainland tourists. These trends underscore the city’s ongoing efforts to sustain economic vitality amid evolving travel patterns and competitive regional markets.