For the Hong Kong Special Administrative Region, what blooms in the north reaps rewards in the south.

With more than 890,000 cross-boundary visitors flocking to the SAR during the just-ended Labor Day Golden Week, the city's tourism sector is wrapping up the five-day holiday on a high note, buoyed by stronger restaurant and retail receipts.

The surge in visitor numbers has driven robust growth in revenues for the dining and retail sector, particularly in well-known tourist hotspots. According to the Hong Kong Restaurant and Tourism Industry Association, member eateries in key tourist districts saw revenue increases of between 15 and 20 percent in the first three days of the holidays, which began on May 1.

Visitors from the Chinese mainland have traditionally been a barometer of Hong Kong's tourism performance. In 2023, the five-day May Day holiday drew 626,000 travelers to the city. The figure surged to 919,000 last year — a robust 47-percent increase in two years. 

This year's May Day break is on course to set an all-time high, with Immigration Department data showing an 8 percent year-on-year increase in the first four days alone.

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Beyond traditional tourist hotspots, businesses in less-visited neighborhoods also capitalized on pop concerts held during the period. Restaurants near Kai Tak Sports Park, the city's new waterfront landmark, saw revenues climbing 10 percent to 15 percent, lifted by a two-day all-star concert series held during the week.

Lawmaker Yiu Pak-leung, who chairs China Travel Service (Hong Kong), said he expects visitor numbers to rise further, noting that Qingdao in Shandong province and Xi'an in Shaanxi province have been added to the Individual Visit Scheme since March.

Industry experts have suggested that concert ticket holders be offered retail and dining discounts to broaden spending beyond traditional tourist zones.