News Analysis
Night Vibes Hong Kong, an annual event created to attract tourists and stimulate the slowing economy, is not as popular as authorities had hoped this year. Recent data show the night market’s attendance has dropped by nearly 40 percent compared to pre-pandemic levels.
Moreover, other major events have also seen a similar decline in attendance, suggesting that they could be ineffective in boosting the economy.
Upon reviewing recent government data, the Hong Kong edition of The Epoch Times found that some events that saw an uptick in attendance were related to the aging population and immigration trends, indirectly reflecting characteristics of Hong Kong’s economic outlook.
The publication found that the profit generated by 210 major events in 2024 would only contribute 3 percent to Hong Kong’s total economic output.
According to the authorities’ “
Hong Kong Events Calendar,” there are 17 major events, which are annual exhibitions that have existed for over 10 years. Attendance at some of these exhibitions has dropped by 30 to 40 percent. The Census and Statistics Department’s
Statistical Digest of the Service Sector indicated that overnight convention visitors numbered close to 1.3 million in 2023, a 23.2 percent decline from 2019 levels, with the number of foreign attendees still not returning to pre-pandemic levels.
These exhibitions target foreign businesspeople as well as locals. The fluctuation in attendance at some events reflects changes in the city’s economic and demographic structures.
The International Printing and Packaging Exhibition, for instance, saw a 37.5 percent drop in attendance, or 10,000 attendees, compared to a peak of nearly 16,000 in 2018.
A
research report by Charles Schwab on the demand for packaging boxes in the United States is used to speculate Hong Kong’s economic prospects, as fluctuations in demand for packaging boxes in manufacturing and trade can gauge economic conditions. The decline in attendance at the packaging exhibition in Hong Kong may indicate a reduction in trade demands, aligning with the weak conditions in Hong Kong’s
retail and tourism sectors.
Furthermore, attendance at exhibitions such as Stationery and Learning Supplies and Baby Expo declined significantly by 31 percent and 19 percent, respectively. In recent years, the emigration of Hong Kong residents has led to
a wave of kindergarten school closures; in 2023, Hong Kong’s birth rate dropped to its
lowest recorded level. Both correspond to the declining attendance at these two exhibitions.
In contrast, the International Medical and Health Care exhibition saw a 4.35 percent increase in attendance, which reflects Hong Kong’s aging population, said Dr. Peter K N Lam, chairman of the Hong Kong Trade Development Council, in a
press release.
Notably, Hong Kong has hosted the
International Immigration and Property Expo for five sessions, with both visitor and exhibitor numbers steadily increasing. Based on The Epoch Times’ review of past press releases and social media records, the number of exhibitors at the expo increased steadily from 60 in its inaugural 2020 session to over 100 in 2024. Additionally, the reported attendance rose from about 30,000 in 2022 to over 35,000 in 2024, an increase of nearly 17 percent, indicating greater demand for immigration-themed exhibitions than others.
In May, the Hong Kong authorities
announced 210 significant events for 2024. These events were expected to attract about 1.7 million tourists, generate around HK$7.2 billion (about $922 million) in consumption, and add HK$4.3 billion (about $550 million) in economic value.
According to a 2022
study by HKTDC Research, the overall contribution of the exhibition industry to Hong Kong’s economy was about HK$52.9 billion (about $6.77 billion) in revenue in 2016, equivalent to 2.1 percent of the local GDP at the time. If the authorities’ projected figures are accurate, the economic impact of the 210 major events would amount to 21.7 percent of the exhibition industry’s contribution in 2016.
In comparison, other major global events in 2024 are expected to generate large profits. The Olympic Games, which will be held in Paris between July 26 and Aug. 11, is projected to bring about €6.70 billion (about $7.21 billion) to €11.145 billion (about $11.99 billion) in economic benefits to the local economy, with indirect economic benefits of about €8.9 billion (about $9.5 billion), according to a
report by the Centre de Droit et d'Economie du Sport
(CDES).
Another event is the Union of European Football Associations (UEFA) Champions League, which kicked off on June 14 and is hosted by Germany. Gerome Wolf from the Ifo Institute for Economic Research
expects the month-long event to bring 600,000 foreign tourists and 1.5 million overnight stays to Germany, stimulating a 1.3 percent growth in adjusted service exports for the quarter compared to the first three months of 2024.
Despite Hong Kong authorities rolling out 210 major events to stimulate the economy, the official data show that, on average, each event is expected to bring only 8,095 tourists, HK$34.28 million (about $4.39 million) in consumption (spending), and HK$20.47 (about $2.62 million) in economic value added, which is not significant.
China expert Wang Anran told the Hong Kong edition of The Epoch Times that the tourism industry, the stock market, and the property sector are a better gauge of Hong Kong’s real economy, while salaries for civil servants and wages in public institutions act as indicators.
“Everything seems to be about maintaining a superficial appearance for now,” he said, adding that if the overall economic situation continues to deteriorate, it will be difficult to sustain related wage levels.
“I hope to see structural improvements, but they have not yet materialized,” he concluded.
