HK residents made over 1.1 million trips to China in long weekend to mark handover

HONG KONG – Hong Kong residents made more than 1.1 million trips to the rest of China during a three-day holiday that ended on July 1, piling more pressure on local retailers and restaurants who are struggling for business.

The number of resident departures through border checkpoints typically used to travel to the mainland and casino hub Macau was 19 per cent higher during the holiday – marking the 27th anniversary of the city’s handover to China from Britain – than in 2019, government data show.

The outbound rush highlights Hong Kong’s struggle to revive its reputation as a regional tourism and retail hub after years of political unrest and strict Covid restrictions.

Hong Kong residents have clocked 49.5 million departures in the first half of the year, the highest since at least 1997, the data show. About 89 per cent, or 44.2 million, were to the rest of China, the highest since that year. The city is home to more than seven million people.

At the same time, tourists to Hong Kong have been slow to return. The city saw only about 345,000 visitor arrivals during the three-day handover anniversary, 36 per cent lower than in 2019. The overall number of mainland tourist arrivals remains 39 per cent below the pre-Covid-19-pandemic level.

In an effort to keep residents in town and attract more visitors during the holiday, Hong Kong announced incentives, including free transport and museum exhibitions. More than 1,000 restaurants offered coupons and discounts.

Nearby mainland cities such as Shenzhen and Zhuhai are luring Hong Kongers by offering more shopping and entertainment options, often at cheaper prices. That has become more appealing as an economic slowdown drives residents to seek better value for money, and major cross-border transport projects make travel faster and easier than ever.

China has eased visa restrictions for long-term foreign residents of Hong Kong, making them eligible for five-year multiple-entry permits to enter the mainland starting on July 10.

Hong Kong leader John Lee on July 2 encouraged people to take advantage of measures announced by China to facilitate cross-border exchanges. BLOOMBERG