Hong Kong tourism market to grow to USD 41.5 billion by 2032

Future Market Insights predicts 10 pc annual growth for Hong Kong
2022-12-09
/
/ New Delhi
Hong Kong tourism market to grow to USD 41.5 billion by 2032

FMI says in its report that the government in Hong Kong is taking measures to develop more tourist attractions, thus making Hong Kong one of the most popular tourist destinations.

In a report, market research firm Future Market Insights says that the Hong Kong Tourism market is set to grow at a vigorous 10 pc CAGR between 2022 and 2032, reaching USD 41.5 billion.
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As Hong Kong reopens to international tourists after almost three years of shutdown, there is good news for tourism stakeholders in the destination. A report by market research firm Future Market Insights says that the tourism industry will grow robustly in the next decade, clocking a compounded annual growth rate of 10 pc and will reach USD 41.5 billion in the year 2032.

In the report, FMI says that the tourism industry is a major contributor to the economy of Hong Kong. Since 2014, growth of tourists from China has decreased, due to which the Hong Kong tourism industry is facing a slowdown. Also, competition is increasing from destinations such as Europe and Japan, which are frequented by Chinese tourists, it adds.

FMI goes on to say in its report that the government in Hong Kong is taking measures to develop more tourist attractions, thus making Hong Kong one of the most popular tourist destinations.

Hong Kong Tourism: Drivers and Restraints

FMI says that tourists from China constituted the largest group of visitors to the Hong Kong Special Administrative region, adding that it was both a driver and a restraint to the Hong Kong tourism market. Chinese visitors come to the Hong Kong region in order to enjoy the duty-free shopping and travel in a world class infrastructure and having not to face the language or other cultural shocks that they may face while travelling in a western country.

However, visitors from China to Hong Kong have been declining since a couple of years due to the recent unrest in the Hong Kong Special Administrative Region for self-rule and tensions with the Chinese population. This unrest has taken its toll on the tourist numbers from the China region.

However, the reputation of Hong Kong as an international financial centre and a preferred destination for regional conferences and conventions has the potential to rebound the negative fall back of the declining tourists from the China region, says FMI.

Hong Kong Tourism: Spend Analysis

As per the figures released by the World Travel and Tourism Council, in the year 2014, the direct contribution of travel and tourism to the GDP of Hong Kong stood at HKD 204.6 billion that comprised 9.1 pc of the total GDP of the region, and this is likely to show an increase by 3.5 pc per annum during the 10-year period of 2015-2025 and reach a figure of HKD 293.2 billion, accounting for 9.5 pc of the total GDP in the year 2025.

FMI says that in the year 2014, visitor exports generated an amount of HKD 366.6 billion that comprised 7.5 pc of the total exports of Hong Kong. Visitor exports are forecasted to increase by 3.6 pc per annum during the 10-year period of 2015-2025 and reach a figure of HKD 527.8 billion in the year 2025 and this will comprise 6.6 pc of the total exports of Hong Kong.

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