The Hong Kong Special Administrative Region (HKSAR) Government's multi-pronged efforts to boost the economy are gradually paying off, with the tourism industry reporting consistent successes. The Hong Kong Tourism Board (HKTB) announced yesterday (Nov. 17) that 4.6 million visitors were recorded last month, an increase of 12% year-on-year. A total of 41 million visitors arrived in the first ten months of this year. The tourism industry representatives believe that with Christmas, New Year, and a series of major events concentrated toward the end of the year, the full-year target of 49 million visitors is within reach.
As the driving engine of the economy, tourism helps stimulate recovery across multiple sectors, benefiting workers in various industries. Economists predict that the unemployment rate, announced today, is likely to ease or may even have already peaked, with the retail and catering sectors being the main beneficiaries. With the economy improving and stock market turnover increasing, Deloitte predicts that the HKSAR Government may eliminate its fiscal deficit and achieve a balanced budget in the 2025 or 2026 financial year, potentially even posting a slight surplus.
According to HKTB data released yesterday, there were 3.452 million mainland visitors last month, accounting for 75% of all visitors, a 10% year-on-year increase. From January to October this year, mainland visitors totaled nearly 31.438 million, an 11% increase year-on-year. For non-mainland visitors, 1.136 million arrived last month, marking a 19% increase. Over the first ten months, about 9.622 million non-mainland visitors were recorded—a 16% increase year-on-year.
Additionally, visitors from new markets increased by 26% year-on-year last month, reaching nearly 79,000. Long-haul visitors posted the largest cumulative increase in the first ten months, totaling 2.785 million—a 19% rise.
HK Brands and Products Expo expected to boost consumption
Lam Chi-ting, General Secretary of the Hong Kong Tourism Industry Employees General Union, told reporters that tourism has been consistently improving. The National Day Golden Week and the Mid-Autumn Festival last month attracted many mainland tourists to HK. With HK co-hosting the National Games this month and Christmas and other festive events coming next month—traditionally peak seasons for tourism—he believes the full-year visitor target of 49 million will be met. He added that upcoming events such as the Brands and Products Expo and other events will further stimulate local consumption, benefiting the catering and retail sectors and easing unemployment pressure.
The unemployment rate for July to September rose to 3.9%, the highest in nearly three years. Unemployment in the food and beverage services sector rose from 4.7% between last November and this January to 6.8% between June–August and July–September this year. Retail unemployment remained at 5.3% during July–September. However, retail sales in September were provisionally estimated at HK$31.3 billion, a 5.9% increase year-on-year.
Financial Secretary Paul Chan Mo-po previously noted that the economy has continued to improve this year. With buoyant financial markets, strong retail performance, and rising visitor numbers, he expects the unemployment rate released today to ease or even decline.
Economist Dr. YUEN Wai-kee told Wen Wei Po in an interview that HK's economic conditions have improved significantly compared to last year. "The visitor numbers have not yet returned to the historical peak of nearly 60 million visitors per year—around 5 million per month—but we are clearly on a recovery path."
He pointed out that the catering and retail sectors have benefited the most from the growth in tourist numbers. The National Day Golden Week and Mid-Autumn Festival last month attracted many visitors to HK. "It is expected that the retail and catering sales data for October should show further improvement." He explained that the turnover rate for workers in the retail and catering industries is relatively high. "When the market improves, it reacts quickly, which is why the situation is getting better. At the very least, the unemployment rate should remain stable. Overall, the economic foundation is strong. As long as the economic trend is positive and relevant data continues to grow, the unemployment rate should at least stabilize." He expects the unemployment rate to decline further in the next reporting period.
Catering industry is entering a busy season
Wong Pit-man, chief secretary of the Eating Establishment Employees General Union, said the catering industry is closely tied to tourism. With visitor arrivals increasing, business in the food and beverage sector has also improved. "The coming few months will be favourable for the industry," he said. Apart from visitor spending, the increase in year-end wedding banquets will also stimulate the market. While imported labour has helped fill staffing gaps, employers are also hiring more local workers. "Business is better now, so more manpower is needed, and more people are joining the workforce."
In addition to individual travellers, many tourists continue to join inbound tour groups, benefiting tourism workers. Lam noted that around 150 to 200 inbound tour groups arrive daily. Although this has not fully returned to pre-pandemic levels—when many tour guides had to switch jobs to stay afloat—employment is now stable.
There are currently over 700 full-time registered tour guides, and including part-timers, there are more than 1,000 guides, enough to meet tour group demand. As to whether more guides who switched careers will return full-time, Lam said it depends on the market outlook: "Tour guides rely on tips in addition to their basic salary. If business continues improving and incomes are secure, more will naturally return to full-time guiding."
From 'scraping by' to 'having work': Senior employees return to the catering industry
"There are more tourists coming to restaurants now. If you go to Tsim Sha Tsui, you'll see that there are a lot more tourists," said Ms. Fung, who has worked in the catering industry for over 30 years. After being laid off twice during the pandemic due to the economic downturn, she switched careers to work as a part-time security guard to make ends meet. However, with the recent surge in tourists visiting HK, the catering market is improving, and she has returned to her old job at a tea restaurant, working part-time in floor service. At the age of 70, she only works half-day shifts.
During the pandemic, dine-in services were banned at night, severely affecting the catering industry. Fung also left her job during this period. "There wasn't enough work. If you're not dependent on the money, it's no big deal. But if you have family expenses, you have to find another way. I went back to school, took security guard training, and got my license. I could always find work, and there was a shortage of security guards."
After the full reopening of the boundary between HK and Mainland in 2023, Fung briefly returned to the catering industry, but the market remained sluggish. Later, she switched back to working as a security guard. Recently, with the continuous rise in tourist arrivals, she returned to the catering industry once more. "A lot of my friends have worked in the catering industry, and many of my old colleagues also turned to security work for a living. But they tell me that recently, some tea restaurants are asking them to come back. In fact, the market has improved and become busier."
She explained that the industry is in need of staff, but most restaurants are hiring part-time workers. She herself works part-time. "Sometimes I work early shifts for 6 hours, sometimes later in the day. It doesn't matter to me. I'm older now, so I don't want to work long hours. After going back to working in a tea restaurant, I've stopped working part-time as a security guard."
She further explained that she has been in floor service for many years and is used to the work. With no financial pressure, she chose to return to her previous line of work. "Another important factor is that security shifts are longer. The part-time work in restaurants is relatively easier, and security work doesn't include meals, unlike in restaurants where meals are provided. For me, that's an important factor."
Mong Kok cosmeceutical retailers recover as the retail market improves
Chung Pok-man, vice chairman of the Hong Kong Department Stores & Commercial Staff General Union, stated that although the total retail sales value has risen, the main reason for the large increase is that the market was extremely weak last year, which created a low base for comparison. Since mid-2025, a moderate increase has been recorded, but not all retail categories have benefited. He hopes that with the market stabilizing, the unemployment rate in the industry will hold steady.
He pointed out that the opening of the Kai Tak Sports Park, along with multiple major events organized by the HKSAR government, has increased the number of tourists visiting HK, boosting the retail market. However, tourists' spending patterns have changed, affecting the overall structure of the retail industry. Additionally, more HK residents are shopping across the boundary. It is expected that the overall retail sales value will hover around HK$300 billion per month, still falling short of the pre-pandemic level of HK$400 billion.
While the market has improved, not all retail categories are benefiting, and some industries still face challenges. Chung said, "In recent years, certain products, such as photography equipment, have been particularly popular. If you go to Mong Kok, photographers love to visit 'Sim City' (a mall with many photography equipment shops), and you can see the crowds are enormous. Another trend is the intellectual property (IP) economy. In recent years, there has been a market for items such as blind boxes or products linked to IP."
As for cosmeceutical products and cosmetics stores, he noted that while there are still a significant number of customers, sales are down compared to pre-pandemic levels. Recently, cosmeceutical stores in popular areas like Mong Kok have seen an uptick in business, but stores in places like Sheung Shui and Fanling have not yet recovered as quickly.
(Source: Wen Wei Po; English Intern Editor: Zara; English Editor: Zoey SUN)
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