Golden Week holiday didn’t do much for the Hong Kong economy? Let’s not be so quick to dismiss it.

The recent Labour Day Golden Week holiday in Hong Kong has sparked discussions about the city’s tourism landscape. While headlines might focus on visitor numbers not reaching pre-pandemic highs (according to some reports), a closer look reveals a more-nuanced picture with promising opportunities for the future.

Traditionally, Golden Weeks have been synonymous with a surge in mainland Chinese visitors, often characterized by large groups focused on luxury shopping sprees. However, this year’s visitor numbers, while lower than some anticipated, reflect a changing trend.

Younger mainland visitors are now seeking more diverse and immersive experiences. This shift is evident in the popularity of attractions like hiking trails, historical landmarks, and local markets. Klook, a travel booking platform, reported a 130 percent year-on-year increase in spending on local products and experiences during the holiday. Notably, spending on dining and cuisine saw the most significant growth, with a staggering eightfold increase.

This shift has several positive implications. While overall spending might be lower compared to the pre-pandemic era of luxury sprees, it fosters a more sustainable form of tourism. Local businesses beyond high-end retail now benefit from tourist dollars, contributing to the economic vibrancy of neighborhoods across Hong Kong. This creates a more balanced tourism ecosystem, less susceptible to fluctuations in luxury goods sales.

Golden Week served as a timely reminder that Hong Kong’s tourism industry needs to adapt to changing consumer preferences

The presence of these budget-conscious yet experience-hungry visitors in local neighborhoods presents a significant opportunity for long-term growth. Their patronage of local shops, restaurants, and cultural events directly contributes to the economic vibrancy of these communities.

Furthermore, early booking behavior observed by Klook (a 30 percent increase in bookings made two weeks or more in advance) suggests a more planned and engaged approach to travel. This allows local businesses to better anticipate demand and tailor their offerings to cater to the specific interests of these new-age tourists. Imagine local restaurants offering curated menus featuring Hong Kong’s culinary delights, or shops stocking unique souvenirs that reflect the city’s rich cultural heritage. This fosters a deeper connection between tourists and the local community, creating a more enriching experience for both.

While tourism is a vital part of Hong Kong’s economy, the city’s strengths lie beyond just visitor numbers. Its robust infrastructure, skilled workforce, and status as a global financial center position it to capitalize on emerging opportunities in the digital economy, fintech and other sectors.

The recent surge in IPO applications from mainland companies further underscores Hong Kong’s attractiveness as a financial hub. These listings not only attract new capital into the local stock market but also strengthen the city’s ties with the mainland’s booming economy. Hong Kong can leverage its expertise and act as a bridge between the mainland and international markets, fostering cross-border collaboration and innovation.

Golden Week may not have been a record-breaker in terms of overall visitor numbers, but it highlighted new trends and the potential for a more sustainable tourism model. By embracing these trends, fostering community engagement, and leveraging its strengths, Hong Kong can navigate the current challenges and emerge with a more diversified and resilient economy.

In light of these developments, the push by tourism and hospitality leaders for an expansion of the Individual Visit Scheme for mainland visitors is a promising step. This initiative can further encourage a more engaged and experiential form of tourism, benefiting both visitors and local businesses. Individual travelers, unconstrained by group itineraries, are more likely to explore hidden gems and engage with local communities, fostering a deeper understanding and appreciation for Hong Kong’s unique culture.

Golden Week served as a timely reminder that Hong Kong’s tourism industry needs to adapt to changing consumer preferences. The city must move beyond the model of mass tourism and embrace a more sustainable and community-driven approach. By focusing on diverse experiences, promoting local businesses, and leveraging its inherent strengths as a global hub, Hong Kong can carve a path toward a more prosperous future. This future promises not only a thriving tourism industry but also a more vibrant and resilient city that caters to the needs of both residents and visitors alike.

The author is chairman of the Asia MarTech Society and an assistant professor at Saint Francis University in Tseung Kwan O.

The views do not necessarily reflect those of China Daily.