What: Hong Kong faces retail transformation as mainland Chinese visitors shift from luxury shopping to budget day trips, with sales declining despite increased visitor numbers.

Why it is important: The transformation highlights the growing disconnect between visitor numbers and retail performance, forcing destinations to rethink their traditional reliance on tourist shopping.

Hong Kong's retail sector is experiencing a significant transformation despite welcoming over 910,000 mainland Chinese visitors during the May Labour Day holiday. Young budget-conscious travelers like Carol Wang, who spent just HK$400 during a one-day visit, represent a new trend of "special forces travellers" who prioritise sightseeing over shopping. While visitor numbers continue to rise, with Hong Kong receiving 34 million Chinese visitors in 2024, spending patterns have drastically changed. Day-trippers now spend an average of HK$1,300, down from HK$2,400 in 2018. This shift has impacted luxury retail particularly hard, with jewelry and watch sales falling 12% in the first quarter of 2025. Tourism's contribution to Hong Kong's economy has consequently declined from 4.5% in 2018 to 2.7% in 2024, prompting officials to promote alternative attractions like hiking trails and cultural sites.

IADS Notes: Hong Kong's retail transformation reflects broader changes in Chinese consumer behavior. According to The Robin Report's January 2024 coverage , consumers are increasingly seeking experiences over traditional shopping, with retailers adapting through enhanced service offerings and digital integration. Retail Asia's March 2025 analysis  showed how multiple-entry visas for Shenzhen residents, while increasing visitor numbers, haven't prevented sales declines, with December 2024 figures falling 9.7% to HK$32.8 billion. Inside Retail's March 2025 report  revealed how consumption patterns among both visitors and residents continue to evolve, with the strong Hong Kong dollar encouraging cross-border shopping in Shenzhen. WWD's November 2024 coverage  demonstrated how Chinese consumers are transforming from traditional 'tourism shopping' to 'retail tourism,' with over 70% seeking enhanced cultural experiences. The emergence of "special forces travellers" who prioritise sightseeing over shopping, spending as little as HK$400 per visit, exemplifies this fundamental shift in retail tourism dynamics.

China’s ‘special forces’ tourists flock to Hong Kong but spend little