This paper examines shopping tourism in Hong Kong as a significant component of the city's broader tourism economy. Drawing on survey data, reports from the Hong Kong Tourism Commission, CLSA Asia-Pacific Markets, Visa, and the Centre for Retail Research, the paper reviews Hong Kong's appeal as a global shopping destination, its retail rankings relative to other world cities, visitor spending patterns, and destination marketing strategies. The study incorporates a primary questionnaire administered to 70 international tourists in Hong Kong, analyzing demographics, shopping preferences, spending intentions, and satisfaction levels. Findings confirm Hong Kong's status as a top-six global shopping destination, highlight the importance of quality and price to visitors, and suggest future opportunities in online retail and post-visit e-commerce continuity.
Shopping tourism is a major aspect of the global tourism trade and, as such, is an area that destination countries and locations should actively promote. This is true for Hong Kong as well as for many other locations throughout the world. Urban tourism and urban regeneration became critically important activities beginning in the 1980s (Ashworth, 1989). Ashworth specifically identifies two elements that link the ideas of the city and tourism, revealing the complex relationship between a city's features and the functions of tourism that give rise to shopping tourism. The first element is comprised of the specific characteristics of a city and how these impact tourism activities. The second element is comprised of the various attributes of the city as represented in the accommodations offered to tourists and in the city's broader infrastructure.
The tourism industry in Hong Kong is reported as "a major pillar of the economy… in 2009, it contributed to 3.3% of Hong Kong's GDP… employing over 193,200 individuals accounting for 5.5% of total employment" in Hong Kong (Hong Kong Tourism Commission, 2011). Visitor arrivals for the first half of 2011 rose by 14.7% compared with the first half of 2010. Hong Kong features 184 hotels with 61,828 rooms, representing a total room supply increase of 1,724 rooms (2.9%) compared to June 2010. The average length of stay of overnight visitors in 2010 was reported at 3.6 nights. To extend visitor stays, the Hotel Accommodation Tax has been waived since July 1, 2008, and the government has undertaken a number of initiatives to promote hotel development to meet the diversified needs of Hong Kong visitors (Hong Kong Tourism Commission, 2011).
Shopping tourism is a strong industry in Hong Kong, which features luxury brand streets and diverse retail environments. Particularly popular with tourists is Causeway Bay, which features department stores, small boutiques, and bargain stalls (Hong Kong Tourism Board, 2007). There are shops that specialize in shoes, electrical appliances, and fashion for young people. The streets of Wan Chai are steeped in history and offer an impressive array of shopping options (Hong Kong Tourism Board, 2007).
Spring Garden Lane is recognized as a particularly good spot to purchase competitively priced clothing, with market stalls that exclusively sell products originally intended for export, meaning quality and price are both competitive (Hong Kong Tourism Board, 2007). Admiralty is a favored destination for purchasing brand-name luxury goods, and Pacific Place is one of the most popular malls in Hong Kong. Hong Kong's Central District boasts many shimmering skyscrapers and marbled shopping atriums and malls. The Western Market in Sheung Wan is a handsomely renovated Edwardian building filled with Chinese handicraft stores and fabric shops (Hong Kong Tourism Board, 2007).
Paul McKenzie, Head of Consumer Research at CLSA, offered the following assessment of Hong Kong's shopping appeal:
"Hong Kong's primary attraction as a shopping destination continues to be the superior quality of goods and wider choice versus the mainland. Over the very long run, Hong Kong's advantages may diminish if China lowers its import duties; if more foreign retailers operate in China; if a wider variety of products are manufactured and sold in China; and if Hong Kong introduces its own VAT. However, over the next few years, Hong Kong will still have relative advantages, as many luxury brands will never be manufactured in China, while there is a certain cachet or 'snob' value attached to Hong Kong purchases of luxury products by mainlanders. With PRC tourists' shopping preferences now very clear, we expect Sa, Lifestyle International, and Dickson Concepts to remain the key beneficiaries of mainland visitor spending." (CLSA, 2004)
The Hong Kong Tourism Commission was first established in May 1999 for the purpose of coordinating various tourism development efforts within government and providing policy support and leadership to the development of tourism in Hong Kong (Hong Kong Tourism Commission, 2011). The objective of the Tourism Commission is to establish and promote Hong Kong as Asia's premier international city and a world-class destination for leisure and business visitors. The trade and government work closely together to fulfill this mission. In addition, the government works to enhance the appeal of Hong Kong as an international convention, exhibition, and tourism capital. Additional funding is earmarked to raise Hong Kong's MICE (meetings, incentive travel, conventions, and exhibitions) profile and to strengthen support for MICE events hosted in Hong Kong (Hong Kong Tourism Commission, 2011).
The government of Hong Kong continues developing a wide range of diversified tourist attractions with a view to enhancing Hong Kong's overall attractiveness as a premier tourist destination. Hong Kong has been aggressively developing a variety of world-class tourist attractions. Major developments include A Symphony of Lights, the Avenue of Stars, the Tsim Sha Tsui Promenade Beautification Project, the Hong Kong Disneyland Resort, the Ngong Ping 360, and the Hong Kong Wetland Park (Hong Kong Tourism Commission, 2011). The residents of Hong Kong are extremely proud of their colorful history and unique oriental culture, especially as it relates to ancient Chinese traditions. Some of the region's most popular annual festivals and events embody the essence of Chinese culture. These cultural festivals and events have become worldwide, famous must-see or must-do attractions, providing an excellent example of successful cultural tourism. The major festivals and events include Chinese New Year Celebrations, Hong Kong WinterFest, Hong Kong Flower Show, Hong Kong Arts Festival, Hong Kong Shopping Festival, Cultural Kaleidoscope, and the Best of the Best Culinary Awards (Hong Kong Tourism Commission, 2011).
Hong Kong's major tourism campaigns include The City of Life, Cathay Pacific International Chinese New Year Parade and Fiesta, HSBC Hong Kong Mega Sale, Hong Kong WinterFest, and Hong Kong Salutes the World (Hong Kong Tourism Commission, 2011). Cultural tourism is thriving in today's global hospitality and tourism industry, and Hong Kong is no exception. The cultural elements drawing tourists include Chinese Opera, theater, and cinema. The Dragon Dance is described as an intriguing traditional dance in Chinese culture, and Song Dynasty Town is characterized as a replica of the Song capital, offering tourists a unique opportunity to glimpse ancient China. The Song Dynasty ruled China from 960 to 1279, and its reign is noted for the development of art, literature, and philosophy (Hong Kong Tourism Commission, 2011). Tea drinking also draws tourists to Hong Kong, rooted as it is in a deep and thriving Chinese tea culture tradition (Hong Kong Tourism Commission, 2011).
Hong Kong is also promoted as a romantic getaway where tourists can stay in luxury hotels, enjoy romantic seafood dinners on the waterfront, indulge in shopping for exclusive designer goods, explore colorful back streets and temples, hike hilltops, or stroll on the beach at sunset (Hong Kong Tourism Commission, 2011). The Hong Kong Tourism Board describes the city as "a kaleidoscope of life; a sophisticated fusion of East and West; a city of diversity where new and old meet at every turn… an age-old synthesis of cultures and traditions that opens a window into what will be, while embracing what has passed" (Hong Kong Tourism Commission, 2011). Chinese sailing, guided walks, and railroad tours all draw visitors into the unique culture of Hong Kong. The modern transportation network and tourist-oriented authentic Chinese traditions together provide both convenience and nostalgia, contributing to the time and money spent in tourism destinations. Cultural tourism has driven the growth of tourism industry participants and, moreover, has driven the profitability of shopping tourism businesses in Hong Kong.
A Visa study included shopping tourists from Canada, the United States of America, Thailand, China, Hong Kong (SAR), Vietnam, Cambodia, and the Philippines. Nine individuals in the study reported an income of US$5,001 or above; one reported an income of US$3,001–$4,000; one reported US$2,001–$3,000; one reported US$1,001–$2,000; two reported no income; and two reported an income of US$500 or below (Visa, 2010). The occupations of participants included clerical/administrative, retired, executive/managerial, academic/educator, self-employed/own company, K-12 student, college/graduate student, and other.
Information on types of goods purchased in Hong Kong was obtained from a study by the Centre for Retail Research, which reported that purchases of non-food retail items totaled €23.45 billion, with 7,026 million shoppers in 2010. Purchases of food items in Hong Kong were reported at €29.27 billion for 2010. Hong Kong recorded approximately 7 million shopping tourists in 2010. Participants in the reviewed study who cited service quality in shopping malls as important totaled two, while other participants cited the following as more important factors: great selection, good prices, great bargains, cheap and convenient options, broad selection range, and discount prices. Five participants stated that product price was the most important consideration. When asked whether they intended to shop in Hong Kong again, all participants said yes, except for one individual who stated they do not like to shop anywhere.
Hong Kong ranks sixth among shopping tourism locations in survey findings reported by the Centre for Retail Research. This survey was published in 2011 and sponsored by Kelkoo. Key results reported that London was found to be the world's shopping capital, with the largest retail market in non-food shopping at £64.15 billion, the largest retail sales of food and non-food at £91.90 billion, and the largest online sales at £9.9 billion (Centre for Retail Research, 2010). The survey examined shopping size and impact across global cities and reported comparability as the key methodological principle.
The top shopping capitals by non-food sales in 2010 were ranked as follows: London (1st, £64.15bn / €75.72bn, population 11.917 million); Tokyo (2nd, £61.40bn / €72.49bn, population 12.989 million); New York (3rd, £46.95bn / €55.43bn, population 8.391 million); Paris (4th, £46.58bn / €54.99bn, population 11.089 million); Los Angeles (5th, £20.39bn / €24.07bn, population 3.834 million); Hong Kong (6th); Rio de Janeiro (21st, £4.57bn / €5.40bn, population 7.623 million); and Johannesburg (22nd, £1.40bn / €1.65bn, population 3.888 million). The statistical mean across all cities was £18.98bn / €22.40bn (Centre for Retail Research, 2010).
For all retail combined (food and non-food), the rankings were as follows: London (1st, £91.90bn / €108.49bn); Tokyo (2nd, £90.17bn / €106.44bn); Paris (3rd, £77.90bn / €91.96bn); New York (4th, £66.20bn / €78.15bn); Los Angeles (5th, £28.75bn / €33.94bn); Hong Kong (6th); Rio de Janeiro (21st, £6.50bn / €7.67bn); and Johannesburg (22nd, £2.21bn / €2.60bn). The statistical mean was £28.28bn / €33.38bn (Centre for Retail Research, 2010).
Online non-food sales present a different picture, with Hong Kong ranked 10th. London led with 15.5% of retail online and £9,923.9 million in online sales, followed by Tokyo (13.8%, £8,453.3m), New York (13.4%, £6,314.1m), Paris (12.1%, £5,639.9m), Los Angeles (11.6%, £2,358.1m), Sydney (11.1%, £1,681.8m), Manchester (12.5%, £1,521.9m), Berlin (13.2%, £1,306.0m), Singapore (6.6%, £1,207.0m), and Hong Kong (5.1%, £1,015.4m / €1,198.7m). Hong Kong's relatively low online sales percentage of 5.1% indicates that the city is missing opportunities to increase its sales in this arena (Centre for Retail Research, 2010).
The most popular global shopping centers among overseas tourists, ranked by visitor numbers, are: London (14.1 million); Singapore (9.7 million); New York (8.5 million); Dubai (7.8 million); Paris (7.8 million); Hong Kong (7.0 million); and Rome (5.5 million) (Centre for Retail Research, 2010).
Visa's Tourism Hong Kong report identified the following spending trends among visitors: accommodations 29.8% ($362.7M); other retail 19.8% ($761.8M); department stores 19.5% ($176.9M); remaining merchants 10.5% ($314.3M); restaurants 16.2% ($126.4M); airlines 11% ($28M); health care 7.7% ($43.6M); travel agencies 5.7% ($25.5M); and other travel and entertainment 3.6% ($35M) (Visa, 2010; Centre for Retail Research, 2010).
The top tourism season in Hong Kong in 2010 was during November and December, coinciding with the Hong Kong WinterFest — an event run by the Hong Kong Tourism Board to attract overseas visitors to celebrate Christmas and New Year in the city. Tourist receipts totaled US$242.2 million and US$239.5 million respectively for 2009 and 2010. The lowest ebb in tourism shopping was reported in February, with a 20% increase in shopping tourism reported during October due to Halloween celebrations at theme parks in Hong Kong.
Spending in merchant shopping categories included: other retail 19.8% ($761.8M); remaining merchants 10.5% ($314.4M); department stores 19.5% ($176.9M); radio, TV, and stereo stores 32.4% ($11M); sporting goods stores 13.2% ($11.3M); furniture and equipment stores 19% ($8.5M); and miscellaneous specialty −1.4% ($8.1M) (Centre for Retail Research, 2010).
CLSA Asia-Pacific Markets reported its third survey on PRC tourist arrivals to Hong Kong, reinforcing the SAR's image as a major shopping destination (CLSA, 2004). Mainland visitor spending continued to rise, with an overwhelming 90% of respondents affirming their intention to return. Primary shopping attractions for mainland visitors included cosmetics, electronic products, clothing, gold, and watches (CLSA, 2004). The CLSA survey showed that per-capita shopping expenditure rose by 52% over nine months, with cash as the preferred method of payment. Key findings included:
Per-capita shopping expenditure reached HK$4,810, up 52% from CLSA's survey in August 2003, implying that mainland visitors would spend US$7.4 billion on retail purchases in 2004. Stripping out double-counted arrivals due to side trips such as those to Macau, mainlanders could account for 28% of Hong Kong's total retail sales. Based on an average 38% retail gross margin, Hong Kong was effectively capturing US$2.6 billion of shopping expenditure, equivalent to 1.5% of estimated 2004 nominal GDP. Using reasonable assumptions, mainlanders could be spending US$16 billion on shopping in Hong Kong by 2010, equivalent to 66% of that year's projected total Hong Kong retail sales and 3.5% of nominal GDP (CLSA, 2004).
The work of Jung, Hsieh, Byrd, and Cardenas (n.d.), entitled "A Case Study of Destination Marketing in Hong Kong," reports that Hong Kong has been aggressively developing a variety of world-class tourist attractions. The study finds that Hong Kong residents are proud of their colorful history and unique oriental culture, and that cultural festivals and events have been successfully developed into worldwide, famous must-see or must-do attractions. The Hong Kong Tourism Board has consistently led a series of ambitious tourism campaigns and promotions since 2000, contributing greatly toward positioning Hong Kong as one of the world's top tourist destinations. Identified strengths of Hong Kong tourism in terms of destination marketing include: effective tourism organizations, continuing tourism product development, a unique variety of annual festivals and cultural events, outstanding tourism campaigns and promotions, quality service controls and hospitality programs, thorough overseas market segmentation and targeting, and active online marketing through a destination management organization (DMO) website (Jung, Hsieh, Byrd, and Cardenas, n.d.).
The purpose of the research in this study is to examine the shopping patterns and preferences of individuals who have spent time shopping in Hong Kong. The methodology employed is a mixed-methods approach involving both qualitative and quantitative data collection and analysis. Data collection was conducted through a questionnaire distributed to a sample of 70 individuals who had spent time shopping in Hong Kong.
The quantitative approach offers the advantage of measuring the reactions of a large sample of participants across a limited set of questions, enabling systematic comparison of data collected. The questionnaire used in this study is structured in nature and was developed specifically for self-reported data collection. It incorporates general demographic information alongside questions focused on the travel and shopping behavior of tourists in Hong Kong. Respondents were instructed to select the statements that best reflected their travel activities or to fill in the blanks with precise information based on their shopping tourism experience in Hong Kong. The questions were designed to investigate shopping behavior characteristics in relation to motivation, attitudes, decision-making, and level of satisfaction while shopping in Hong Kong.
"Questionnaire design, sampling, and data collection approach"
"Demographics, preferences, spending intent, and satisfaction"
"Online retail opportunity and future tourism development"
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