Simon Wong, the chairman of the Quality Tourism Services Association, addressed concerns in the catering and retail sectors regarding the spending power of mainland tourists. He emphasized that businesses must adapt to the changing consumption habits of these visitors to remain competitive in the market.
Wong highlighted that mainland tourists are no longer spending as extravagantly as they did before the Covid-19 pandemic. In fact, the average spend for each mainland tourist staying overnight has decreased by HK$3,000 in the retail sector, which is the most significant drop among all industries. Despite this decline, Wong suggested that this shift might not necessarily indicate a weakening in the purchasing power of mainlanders.
According to Wong, it is crucial for the catering and retail industries to understand that the apparent decrease in spending by mainland tourists could be attributed to a normalization of their consumption behavior. He cautioned against expecting a sudden surge in spending akin to pre-pandemic levels, as it might simply be a correction from previously inflated spending patterns.
Adapting to Changing Trends
Wong advised businesses to acknowledge and embrace these evolving trends in mainland tourists’ spending habits. By recognizing and adapting to the new normal of reduced spending, the catering and retail sectors can continue to attract and cater to this crucial demographic.
Market Performance and Projections
Despite the challenges posed by shifting consumer behaviors, Wong shared positive news regarding the recent surge in business during the Christmas holidays. Businesses experienced a notable increase of up to 20 percent month-on-month, indicating a potential recovery in the market. However, this growth was still below the levels seen a year ago, with a 10 percent decrease compared to pre-pandemic figures.
Impact of Visa Schemes
Wong also highlighted the positive impact of the resumption of the multi-entry visa scheme for Shenzhen residents on the local economy. This move has bolstered business activity and provided a much-needed boost to the catering and retail sectors, signaling a promising outlook for the future.
In conclusion, Wong’s insights underscore the importance of adapting to changing consumer behaviors and market dynamics in the face of evolving trends. By embracing these shifts and adjusting their strategies accordingly, businesses can position themselves for sustainable growth and success in the post-pandemic landscape.
