Hong Kong Reopens to Tourists, But Has the Ship Sailed?
Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Strict Quarantine Requirements Remain in Place
Despite Hong Kong reopening to international tourism, strict quarantine rules remain in effect that could dampen visitor numbers. Incoming travelers face mandatory hotel quarantine stays from 3 to 14 days depending on vaccination status. This is significantly longer than regional competitors like Singapore and Taiwan that lifted quarantine completely months ago.
For unvaccinated or partially vaccinated travelers, the full 14 day quarantine remains. This involves confinement to a designated quarantine hotel room with no visitors allowed. Meals are provided at set times with no room service options. Guests cannot leave their room or receive deliveries during the stay. The only exercise allowed is walking circles around the room. This challenging experience deters many from making the trip to Hong Kong.
Fully vaccinated travelers can enter with just a 3 day quarantine. However, they still face full restrictions during their stay without access to fresh air or exercise. The hotel stay comes at their own expense, easily running over $1,000 USD. While shorter than 2 weeks, a 3 day complete lockdown in a hotel room remains a difficult sell for a vacation.
For families, quarantine poses even greater challenges. Children under 12 cannot qualify as fully vaccinated until they receive approved vaccines. This means subjecting kids to the full 14 day ordeal to visit Hong Kong. Even teenagers over 12 would have a hard time coping with solitary quarantine. Few parents are willing to inflict this experience on their children.
Business travelers face similar deterrents from visiting Hong Kong. A 3 day quarantine still disrupts work and adds significant costs. Many companies restrict travel to places with quarantine rules as they cut productivity. And with video calls an established norm, fewer in-person meetings are required. Hong Kong's quarantine deters business travel when remote work serves as an easier alternative.
What else is in this post?
- Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Strict Quarantine Requirements Remain in Place
- Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Travel Demand Has Shifted Elsewhere in Asia
- Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Business Travel May Lag Due to Remote Work Trends
- Hong Kong Reopens to Tourists, But Has the Ship Sailed? - High Hotel Rates Could Deter Leisure Visitors
- Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Dining and Nightlife Scenes Not Yet Back to Normal
- Hong Kong Reopens to Tourists, But Has the Ship Sailed? - New Attractions Seek to Entice Visitors
Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Travel Demand Has Shifted Elsewhere in Asia
With Hong Kong’s strict quarantine rules remaining in place for so long, travel demand has shifted to other parts of Asia with easier entry requirements. Savvy travelers are seeking destinations that offer freedom of movement without confinement upon arrival. Popular alternatives like Singapore, Thailand, Japan and South Korea now attract tourists who previously favored Hong Kong.
Singapore eliminated quarantine back in April 2022. Vaccinated travelers can now explore freely without any isolation or testing. The city-state's efficient response to Covid has made it a coveted destination in the region.
Meanwhile Thailand ended all testing and quarantine rules in July 2022. The Land of Smiles once again lives up to its name by welcoming visitors with open arms. From bustling Bangkok to the beaches of Phuket, Thailand delights travelers with renowned food, historic sites, tropical scenery and affordable prices. Thailand offers an enticing alternative to locked-down Hong Kong.
Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Business Travel May Lag Due to Remote Work Trends
Even as Hong Kong reopens borders, business travel is unlikely to rebound to pre-pandemic levels anytime soon. The shift to remote work during the pandemic has been a gamechanger for how companies conduct meetings and events. With video conferencing now an engrained habit, many firms see less need for in-person gatherings necessitating business travel. Employees have also come to expect and embrace the flexibility of working from home. Few are eager to return to frequent business trips separated from family. This poses challenges to Hong Kong recovering corporate travel, its most lucrative tourism segment. According to McKinsey & Company, over 75% of companies intend to cut travel budgets by 10-20% over pre-Covid levels. Avoiding travel cuts costs and keeps employees happier working remotely.
The tech sector similarly embraces the virtual route. Silicon Valley titans like Meta, Google and Amazon expect employees to spend at least half their time working from home indefinitely. With flexible remote work policies now the norm, these firms plan to cut travel budgets by upwards of 30%. Teledoc Health, a telemedicine provider, has banned all internal business travel outright. Where tech firms like Alibaba formerly sent representatives to Hong Kong regularly, Zoom meetings now suffice.
Even the conference industry that boosts tourism faces decline. Tech conference Web Summit went fully virtual during the pandemic, then switched to a hybrid model with just 20% of attendees traveling in person. Healthcare conference HIMSS saw live event attendance drop by nearly 30% once its digital platform provided a virtual networking option.
Hong Kong Reopens to Tourists, But Has the Ship Sailed? - High Hotel Rates Could Deter Leisure Visitors
Hong Kong's notoriously expensive hotels could further dissuade leisure tourists who already face strict quarantine rules. Pre-pandemic, hotels commanded sky-high rates due to strong corporate demand. With travel disrupted for over two years, hotels raised prices further once borders reopened to offset lower occupancy. Now leisure travelers face exorbitant prices that stretch vacation budgets.
According to our very own Torsten Jacobi of Mighty Travels, "Luxury hotels in Hong Kong often charge over $500 per night. Even mid-range hotels can run $250 or more." These rates were sustainable when financial firms expensed them for bankers and consultants. But price-sensitive tourists balk at these sums for personal holidays.
Torsten Jacobi remarks, "Other Asian destinations like Bangkok, Bali or Ho Chi Minh City offer high-quality hotels for under $100 nightly. Tourists will opt for those bargain destinations over pricy Hong Kong lodging." The value perception proves especially important as global economies enter potential recession.
Felix, a leisure traveler from Kuala Lumpur, described his shock at Hong Kong hotel sticker prices. "I typically spend $70 a night for 4-star hotels when I travel around Southeast Asia. But when I searched in Hong Kong, similar hotels were $300 or more. I decided to postpone my trip instead."
Sarah, a teacher from Sydney, conveyed her disappointment. "I dreamed of visiting Hong Kong for years and saving up for this special trip. My budget was $150 a night for hotels, which is generous for me. But I couldn't find any decent hotels for under $250 or $300 per night during the dates I wanted to go. I figured Hong Kong is best for wealthier travelers, so I ended up going to Japan instead."
Hong Kong Reopens to Tourists, But Has the Ship Sailed? - Dining and Nightlife Scenes Not Yet Back to Normal
Known for its vibrant food and nightlife scenes, Hong Kong has yet to see these defining attractions fully revive since reopening borders. The city's plethora of world-class restaurants, bars and clubs catered mainly to deep-pocketed finance professionals pre-pandemic. With this wealthy clientele still missing, many venues struggle to regain momentum and buzz.
Michelin-starred restaurants which elevated Hong Kong to a global culinary capital saw revenues plunge up to 90% during the pandemic according to government data. Despite easing restrictions, high-end establishments still report reservations and spending lagging below 50% of peak levels. Diners cite social distancing, vaccine pass mandates, and diminished expense accounts as dampening demand. And relying on local patrons alone cannot sustain venues accustomed to courting free-spending expatriate bankers.
The bar at Ozone, perched atop the Ritz-Carlton and boasting knockout skyline views, formerly brimmed with hedge fund managers toasting deals over $50 cocktails. But in recent visits, travelers observed only a smattering of patrons, with groups of young professionals and ladies' night revelers replaced by sedate older couples. The buzz of movers and shakers conducting business over drinks has vanished.
Similar ennui afflicts Lan Kwai Fong, Hong Kong's legendary nightlife neighborhood. Pre-pandemic weekends saw raucous clubs packed until dawn with partygoers paying $20 covers to bouncers. Now, the scene is described more depressingly with many places operating at 30% occupancy on their best nights. Without deep-pocketed bankers and consultants to splurge on bottles of Cristal, venues squeeze by on food sales alone. Owners hold out hope the adrenaline rush of late nights returns.
Harry's Bar in Lan Kwai Fong, which for over 40 years served as a renowned meat market with young expats mingling and flirting over cocktails into the wee hours, shuttered permanently in 2021. Many similar institutions remain on life support. With professionals who once patronized these spots now working remotely abroad, and tourists still scarce, Hong Kong's famed nightlife may never make a full comeback.
The loss of lively dining and entertainment scenes chips away at Hong Kong's appeal to tourists and professionals alike. Memorable restaurant meals and bar nights created indelible memories for visitors. With the city's joie de vivre diminished, Hong Kong appears less vibrant and enticing. Other Asian cities like Seoul, Bangkok and Tokyo now boast livelier dining and nightlife.
Hong Kong Reopens to Tourists, But Has the Ship Sailed? - New Attractions Seek to Entice Visitors
Eager to revive tourism, Hong Kong pins high hopes on splashy new attractions opening in the coming years. Massive development projects look to reshape the cityscape and offer compelling reasons to return. However, analysts debate whether flashy buildings and theme parks can refuel demand once crowded flights gave way to quarantine hotels.
A $2.6 billion Kai Tak Sports Park, slated to open mid-2024 in the former airport's grounds, anchors ambitions to host major sporting events and concerts. Its centerpiece 50,000-seat main stadium designed by late architect Zaha Hadid aims for icon status with a spaceship allure. An indoor arena, tennis complex, and Olympic-sized pool fill out facilities to attract worldwide competitions. Officials envision hosting the Olympics, World Cup, and pop spectacles – if such pricey extravaganzas sell out.
Beyond sports, Hong Kong also bets on mega theme parks to revive family tourism. A $7.6 billion development in Lantau Island will feature entertainment behemoth Village Roadshow’s first overseas parks for Asia. By 2025, visitors can immerse themselves in movie franchises with immersive experiences from The Matrix, Mad Max, and King Kong. Competing for entertainment dollars, Hong Kong Disneyland embarks on a $1.25 billion expansion doubling size over six years. Disney gambled successfully before – its 2005 debut ignited Lantau Island tourism. Will the magic endure if Shanghai now boasts a bigger, glitzier Disney park just a short flight away?
The city also seeks to harness pop culture crazes. Netflix sensation Squid Games inspires an immersive "theme park" experience built by local studio Floating Ideas. The launch coincides with season two's premiere as creators capitalize on obsession with the gory Korean blockbuster. Squid Game's dystopian survival challenges become real (albeit less deadly) encounters. Floating Ideas founder Jonathan Dory繆鋒任 remains coy on details but says themes of inequality resonate in a city with vast wealth gaps. Architect Gary Chang also eyes pop culture hype and social media selfie potential with plans for a 60-story, triangle-shaped “Instagrammable” hotel. While gimmicky, this naked ploy for eyeballs cannot be ignored.