Travel & Tourism - Hong Kong

Hong Kong

By 2024, the Travel & Tourism market in Hong Kong is projected to generate a revenue of US$4.28bn.
This revenue is anticipated to display an annual growth rate (CAGR 2024-2028) of 8.45%, resulting in a projected market volume of US$5.92bn by 2028.
The largest market in this market is the Package Holidays, which is anticipated to generate a projected market volume of US$1.67bn by 2024.
By 2028, the number of users in the Package Holidays market is expected to reach 6.71m users.
In 2024, user penetration is estimated to be 80.9%, and it is expected to increase to 103.1% by 2028.
Furthermore, the average revenue per user (ARPU) is expected to be US$0.71k.
In the Travel & Tourism market of Hong Kong, 86% of total revenue is anticipated to be generated through online sales by 2028.
When compared globally, it is projected that United States will generate the most revenue, which is expected to be US$199bn by 2024.
Hong Kong's Travel & Tourism industry is experiencing a significant decrease in visitor arrivals due to ongoing protests and the COVID-19 pandemic.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Market

Region

Region comparison

Currency

Analyst Opinion

Hong Kong's Travel & Tourism market has been experiencing significant growth and development in recent years.

Customer preferences: Travelers in Hong Kong are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions towards more off-the-beaten-path destinations. This shift in preferences has led to a rise in demand for personalized and tailor-made travel experiences, as well as a growing interest in sustainable and responsible tourism practices.

Trends in the market: One of the key trends shaping the Travel & Tourism market in Hong Kong is the increasing popularity of wellness tourism. Travelers are now prioritizing health and well-being during their trips, leading to a surge in demand for wellness retreats, spa vacations, and outdoor activities. Additionally, the rise of technology and social media has transformed the way travelers research, book, and share their travel experiences, driving the growth of online travel platforms and influencer marketing in the market.

Local special circumstances: Hong Kong's unique position as a global financial hub and gateway to China has contributed to its thriving tourism industry. The city's efficient transportation network, world-class shopping and dining options, and vibrant cultural scene make it a popular destination for both leisure and business travelers. Additionally, Hong Kong's strategic location in Asia has made it a hub for international conferences and events, further boosting its tourism sector.

Underlying macroeconomic factors: The strong economic growth and rising disposable incomes in Hong Kong have fueled domestic and international travel, with more residents opting for leisure trips both within the region and abroad. The government's efforts to promote tourism through initiatives such as visa facilitation and infrastructure development have also played a significant role in driving the growth of the Travel & Tourism market in Hong Kong.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.