Cheaper HK dollar means lower costs for tourists

Gates and Buffett felt they were returning something to a system that had made them wealthy; the new guard believes it's already done more than enough with its innovations.

- Beth Kowitt

WELCOMING THE BUDGET-CONSCIOUS VISITOR Indeed, Hong Kong's tourism policy ought not be focused solely on reeling in the high-rollers, but should also aim to cater to a diverse range of visitors to ensure that any uptick in tourism remains sustainable.

The current trend of budget-conscious mainland travellers who prefer immersive cultural experiences, low-cost food options and value purchases over luxury shopping and fine dining have a place in the city's tourism landscape, too.

The authorities could consider expanding the city's range of travel lodgings to accommodate the habits of such tourists.

They contribute, after all, to the broad middle of the economy, helping to keep afloat the small local enterprises, the traditional bing sutts, cha chaan tengs and dai pai dongs (Hong Kong-style cafes, diners and roadside stalls) that many Hong Kongers hold so dear to their hearts.

To be sure, overtourism and misbehaving visitors can create problems. Overcrowded attractions in Japan and Spain, for example, have caused traffic congestion, environmental degradation and disruptions to local life, spurring the authorities to implement visitor caps and tourist taxes.

While 50 mainland tourists hogging tables to sleep at a McDonald's outlet may be a nuisance for one fleeting holiday season, business at such 24-hour joints in post-Covid-19 Hong Kong is typically slow - even non-existent - in the wee hours anyway.

Already, businesses are bracing themselves for greater global headwinds and higher economic volatility in the face of US President Donald Trump's tariff war centred on China, despite a 90-day reprieve achieved amid a trade truce.

The sharp rise in US policy uncertainty has shaken investor confidence in American assets, weakening the US dollar in recent weeks. That, in turn, has dragged down the Hong Kong currency, which is pegged in a narrow range to the greenback.