How can HK brands open up mainland visitors' wallets during the Golden Week holiday?

Despite Hong Kong looking to welcome 1.2 million mainland visitors during the upcoming Golden Week holiday, industry professionals are expecting a decline in tour groups and hotel bookings in the city.

The hospitality industry is expecting a 20% drop in sales over the National Day holidays as mainland tourists opt for day trips in Hong Kong, according to Caspar Tsui, the executive director of the Federation of Hong Kong Hotel Owners, citing the industry’s concerns about the tourism performance for the rest of this year.

Meanwhile, Sara Leung, chair of the Hong Kong Tourism Industry Employees General Union, said there are still available rooms at certain hotels, in contrast to the fully booked status during the same period before the pandemic.

The number of mainland group tours visiting Hong Kong has also dropped to 850 tours this year, when compared to around 2,000 before the onset of the Covid-19 pandemic.

On the retail front, a number of local retailers have been forced to shut their doors in the past year, according to a check by MARKETING-INTERACTIVE on the Facebook group 全港店舖消息(開張/執笠)關注組 (店舖/ 餐廳/ 零售/ 商場/ 小店/ 大集團/ 實體經濟), which tracks the openings and closures of retail stores and restaurants.

For example, KFC’s Kowloon City Plaza branch will close after tomorrow (1 October), and Mos Burger has recently shut down two of its locations in two weeks.

To boost tourism and spending while promoting the city to the mainland market, the Hong Kong Tourism Board (HKTB) has partnered with major travel agents in over 20 mainland cities to promote packaged tourism products in Hong Kong. Additionally, it has collaborated with mainland portal Amap (高德地圖) to distribute HK$10 million in credits for ride-hailing services in Hong Kong.

Locally, the HKTB will launch several initiatives such as free tram rides, drone shows, and special discounts at food stalls during the “A Taste of Temple Street” night market (食聚廟街).

Creating unique travelling experience

Don’t miss: HK partners Chinese travel agents to boost tourism for National Day

Industry players MARKETING-INTERACTIVE spoke to agreed the initiatives can help create unique experiences for travellers. In fact, Chinese travellers are prioritising unique experiences nowadays, according to online travel platform Fliggy’s 2024 National Day holiday travel forecast. These include activities such as cultural tours, exhibitions, traditional costume photography, forest hikes, fishing, and sailing.

Charlene Ree, CEO and founder, EternityX, said the HKTB’s initiatives are strategically aligned with evolving traveller preferences, while offering immersive experiences such as drone shows and free tram rides taps into the experiential nature of travel today.

Partnering with Chinese travel platforms is also a smart move as digital convenience is now an expectation for Mainland travellers, Ree said. “In a market where choices are abundant, creating memorable, unique experiences is key to capturing visitor attention.”

As a city that blends a unique fusion of culture, landscape, and vibrancy, these initiatives smartly highlight experiences that are distinctive to Hong Kong and will help attract visitors and drive future visits, said Shiggy File, chief strategy officer, dentsu Hong Kong.

However, Joanne Tong, managing director, Mediabrands Hong Kong, said there’s no quick fix to the decline in mainland visitors to Hong Kong.

While these initiatives may attract tourists who already intend to visit Hong Kong, they are not significant enough on their own to draw new visitors, she said. “They may lure tourists from the Greater Bay Area (GBA) who do not plan to fly to other countries, but it will not be the reason to choose Hong Kong over Tokyo.”

How can marketers open up consumers' wallets this Golden Week?

While Hong Kong is all geared up to welcome mainland visitors, many tourists prefer day trips and are reluctant to extend their stays in Hong Kong. How marketers can encourage tourists to spend during the holiday period is a million-dollar question.

Opportunities abound when brands focus on both value and experience, according to EternityX’s Ree. “Personalisation is essential, allowing brands to provide tailored experiences such as exclusive products and unique in-store moments by understanding consumer preferences through data-driven insights.”

Integrating seamless digital payment options and leveraging influencer marketing can also tap into the social-driven purchasing behaviours of Chinese tourists, Ree added.

“Ultimately, it is about transforming shopping from a transactional experience into an integral part of the traveller’s journey. If marketers can align their offerings with what truly motivates this demographic, they can inspire both immediate purchases and lasting brand loyalty,” she said.

Apart from offering discounts, brands should focus on enhancing the brand experience, including service and ambiance, said Mediabrands’ Tong. For example, better dining experiences go beyond just the food; they also encompass quality service and a pleasing ambiance.

“It is the unique sense of culture and history that create the Hong Kong experience. If travel is about the experience, not the destination – then we must create a ‘Hong Kong experience’," Tong said.

While Hong Kong consumers enjoy shopping in Japan for its packaging, service, and overall shopping experience, the city can differentiate itself by creating an utterly exclusive shopping experience, she added.

Brands should also put themselves in Hong Kong visitors’ shoes, as these travellers want to be surprised and delighted amid the overwhelming flood of messages, visuals, and sounds, according to dentsu’s File.

“Define how you can cut through the clutter because you can’t drive sales unless you first have their attention. Will it be experiences, services, products, or value? Define how you can grab their attention. Does it help you stand out?” he said.

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