Dominic Lee says the city should capitalize on its success, and thereby ensure sustained growth and vitality for years to come

After a challenging period marked by uncertainties and disruptions, Hong Kong’s economy demonstrated impressive resilience during the recent Labor Day holiday. The surge in cross-border travel and bustling scenes across the city underscored the Hong Kong Special Administrative Region’s enduring appeal as a leading regional hub for tourism, entertainment, and business.

Data released by the Immigration Department depicted an encouraging picture of revival. On the last day of the week-long holiday, nearly 900,000 travelers crossed the border with the Chinese mainland, with over 530,000 people entering Hong Kong. This significant influx of visitors highlights robust consumer confidence and renewed interest from mainland tourists — a crucial driver of economic activity for the city.

The surge of visitors was not confined to border checkpoints alone. Popular entertainment districts like Lan Kwai Fong and Soho also experienced a remarkable resurgence. Previously quieter areas sprang back to life, filled with enthusiastic crowds enjoying the city’s nightlife. Mainland visitors, sharing their experiences on the Xiaohongshu, expressed delight at the vibrant atmosphere, remarking that Hong Kong's iconic nightlife and cosmopolitan charm had returned in full force.

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In addition, the renewed bustle of areas like Peel Street and Hollywood Road signals broader economic rejuvenation. Bars and restaurants reported full houses, with crowds spilling onto pavements, indicative of consumers’ eagerness to spend and enjoy the unique urban experiences Hong Kong offers. This revival is not only symbolic of Hong Kong’s enduring attractiveness but stands as tangible proof of the city’s continued economic vitality.

More significantly, the positive economic impacts of Labor Day holiday extended beyond nightlife venues. Retailers across the city, notably in shopping districts like Causeway Bay and Tsim Sha Tsui, experienced strong sales. Visitors from the mainland emphasized the HKSAR’s distinct shopping appeal, with many citing the city’s diverse range of goods and superior customer service as key draws. The holiday thus reaffirmed the city’s position as a top-tier shopping destination, capable of rapidly rebounding from downturns.

However, this economic buoyancy was not confined to luxury retail or nightlife. A striking trend this week-long holiday was the diversity of visitors’ spending patterns. According to reports, many mainland tourists opted for budget-conscious accommodations and dining options, indicating a broader, more inclusive recovery benefiting various market segments. Such patterns underscore Hong Kong’s ability to cater to a wide spectrum of consumer preferences, further enhancing the city's overall competitiveness.

Visitors interviewed during the holiday said they were broadly satisfied, highlighting improvements in hospitality and service standards. This positive sentiment from mainland tourists is essential, given their pivotal role in Hong Kong’s tourism economy. Their reflections indicate not merely a temporary spike in visitors but a lasting confidence in Hong Kong as an attractive destination for repeated visits.

The HKSAR government’s efforts in revitalizing the city through targeted promotional campaigns and well-coordinated infrastructure upgrades also deserve recognition. Even though the handling of large visitor numbers at border points left room for further streamlining processes and enhancing efficiency, the effective crowd management in busy districts demonstrated Hong Kong’s robust planning and administrative capabilities. Such effective governance inspires confidence among tourists and investors alike, further reinforcing the city’s long-term economic resilience.

From a broader perspective, Hong Kong’s thriving Labor Day holiday sends an optimistic signal to international observers regarding the city’s economic outlook. Despite global geopolitical uncertainties, Hong Kong continues to leverage its unique advantages under the “one country, two systems” framework. The city’s role as a strategic gateway between China and the global market remains unshaken, as evidenced by the sustained enthusiasm of mainland consumers and international visitors.

Looking ahead, the HKSAR must seize this momentum to solidify its economic revival. Ongoing investment in infrastructure, sustained promotional efforts abroad, and continuous improvement of service standards are vital steps. Equally important is the need to diversify tourist attractions beyond shopping and nightlife, promoting Hong Kong’s natural and cultural assets to attract a broader base of international visitors.

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Hong Kong’s vibrant recovery during this week-long surge is more than just a short-term economic boost. It symbolizes a deeper narrative of strength, adaptability, and renewed confidence across sectors. The city’s ability to bounce back from past adversities and swiftly revitalize its markets provides a compelling testament to its enduring resilience and dynamism.

As we celebrate this successful Labor Day holiday, we must also reflect on the collaborative efforts that made it possible. Businesses, local communities, and government agencies have all played integral roles in reinvigorating our city’s spirit. Let us use this moment as a catalyst to further propel Hong Kong’s economic momentum forward, ensuring sustained growth and vitality for years to come.

The author is the convener at China Retold, a member of the Legislative Council, and a member of the Central Committee of the New People’s Party.

The views do not necessarily reflect those of China Daily.