Hong Kong’s tourism sector is showing a robust recovery. The Hong Kong Tourism Board reported a 9 percent increase in visitor arrivals in the first quarter of 2025 compared with the same period last year, with over 1.7 million tourists visiting during the Easter and Labor Day holidays alone. This surge is a vital economic boost — overnight tourism revenue reached approximately HK$120.5 billion ($15.4 billion) in 2024 — and tourism now accounts for about 1.7 percent of Hong Kong’s GDP, with nearly 150,000 jobs supported by the industry. Yet, alongside this growth come significant challenges that must be addressed to ensure sustainable development.

Popular tourist districts such as Tsim Sha Tsui and Sai Kung have become overcrowded, disrupting residents’ daily lives and causing prices for essentials to rise by as much as 15 percent in some areas. Speaking from personal experience, I found the recent holidays so congested that I chose to leave Hong Kong temporarily to escape the crowds. My travels to Sapporo and Osaka in Japan and Dongguan in the Guangdong-Hong Kong-Macao Greater Bay Area further highlighted a critical shortcoming in our city: a lack of expansive, accessible public spaces. Unlike those cities, where wide streets, large parks and well-designed public areas offer room to breathe, Hong Kong’s narrow, crowded streets exacerbate congestion and strain urban living.

Data confirms this spatial disparity. Hong Kong provides just 2 square meters of urban public space per person — barely enough to stand comfortably — while cities like Tokyo and Singapore offer more than double that amount, at 5.8 and 7.4 sq m per person respectively. Although green spaces cover a significant portion of Hong Kong’s total land area, they are often located far from densely populated urban centers, limiting accessibility. This uneven distribution intensifies overcrowding in commercial and tourist hot spots, contributing to resident dissatisfaction and reducing the city’s livability.

The government’s Development Blueprint for Hong Kong’s Tourism Industry 2.0 recognizes these issues and promotes a sustainable, value-driven tourism model that balances welcoming diverse visitors with protecting residents’ quality of life. It emphasizes quality over quantity, aiming to strengthen Hong Kong’s role as an international tourism hub and events capital. Flagship events such as the Hong Kong International Dragon Boat Races and the Wine and Dine Festival attract high-spending visitors and showcase the city’s unique culture. The budget for fiscal year 2025-26 allocated HK$1.235 billion to the HKTB to implement the “tourism is everywhere” concept, reflecting a commitment to spreading tourism benefits beyond traditional hot spots.

By prioritizing quality over quantity, investing in public space, and aligning policy with a clear, consistent brand identity, Hong Kong can secure a sustainable, prosperous future as a vibrant, livable city that welcomes visitors without compromising its soul

However, Hong Kong’s tourism strategy currently sends mixed signals. On one hand, there is a concerted effort to attract affluent visitors through luxury yacht tourism and upscale events. On the other, budget tour packages offering crowded, low-cost experiences continue to proliferate. This fragmented approach risks diluting Hong Kong’s premium appeal and undermining the visitor experience.

To truly flourish, Hong Kong must clarify its tourism identity. Once known as the “Riviera of the Orient” in the 1930s for its sunny beaches, elegant resorts like Repulse Bay, and vibrant cultural scene, Hong Kong can reclaim this heritage by positioning itself as the “Riviera of Asia”. This branding would highlight the city’s luxury shopping, fine dining, country parks, and waterfront lifestyle, reconnecting with its legacy as a refined leisure destination.

Competing on price alone is a losing strategy. High-value tourists seek distinctive, comfortable experiences — not overcrowded, low-value offerings that degrade the city’s atmosphere and strain infrastructure. By focusing on quality and uniqueness, Hong Kong can attract visitors who contribute meaningfully to the economy while preserving its character.

Moreover, the government should shift its key performance indicators from raw visitor numbers to metrics reflecting economic impact and resident satisfaction. Encouraging visitors who spend and engage deeply with the city benefits both the economy and local communities, while mitigating overcrowding’s negative effects.

Addressing these challenges requires a multipronged approach. First, expand and improve public spaces in densely populated districts to relieve congestion and enhance experiences for residents and tourists alike. The government’s target to increase urban public space to 2.5 sq m per person by 2030 is a start, but more ambitious goals are needed to match leading Asian cities.

Second, implement smart crowd management by using real-time data analytics to monitor and regulate visitor flows during peak periods, preventing overcrowding in popular areas.

Third, support local businesses and authentic cultural experiences that encourage longer stays and higher spending, spreading tourism benefits beyond shopping malls to neighborhoods and heritage sites. Other measures should also be taken into consideration if Hong Kong wants to boost its global image. The city may raise regulatory standards for tour operators to prevent overcrowding on budget tours and ensure quality service, protecting both tourists and residents. It is time for the city to invest in diversified, high-quality events that attract affluent tourists year-round, reducing reliance on mass-market, low-cost packages. Last but not the least, the city should promote sustainable tourism education to foster mutual respect between visitors and residents and preserve Hong Kong’s unique character.

Hong Kong’s tourism recovery is promising, but it must be managed wisely. By prioritizing quality over quantity, investing in public space, and aligning policy with a clear, consistent brand identity, Hong Kong can secure a sustainable, prosperous future as a vibrant, livable city that welcomes visitors without compromising its soul.

The author is a Hong Kong-based writer, public advocate and public affairs commentator.

The views do not necessarily reflect those of China Daily.