Birth of the panda economy?

As Hong Kong seeks ways to inject fresh vitality into the local economy, the first locally born giant panda cubs and the imminent arrival of two adult pandas from mainland China are being hyped for their potential to add a much needed boost to the tourism industry.

The birth of a female and male cub to Ying Ying, the oldest giant panda in captivity to give birth for the first time, coincided with the announcement that Hong Kong would receive a pair of giant pandas from mainland China as a replacement for the two who died of old age in 2016 and 2022.

Brand Panda

Within hours of the birth of the babies – pink, hairless and each about the size of a mouse – at Ocean Park on 15 August, a number of tourism leaders were touting the benefits of capitalising on a 'panda economy'. Although it will be some months before the cubs will be ready for visitors, suggestions have been made that Hong Kong could adopt the pandas as its mascot, develop a range of themed products and even use their image on its flagship airline, Cathay Pacific.

From the time when giant pandas were first introduced to Ocean Park in 1999, they have been viewed by more than 55 million visitors. While the theme park will soon be home to six giant pandas, including the recently born cubs, it is doubtful that tourists, especially long-haul tourists, would visit Hong Kong specifically to view giant pandas.

Since Hong Kong fully reopened to travellers in February 2023, the Special Administrative Region (SAR) has been struggling to attract visitor numbers equal to the level prior to the Covid-19 pandemic. According to Hong Kong Tourism Board (HKTB) figures, in the first half of 2024, the SAR recorded about 21 million visitor arrivals, up 64% compared to the same period in 2023; notably, 16.1 million of those trips were from mainland China. Extrapolation of the figures suggests that Hong Kong is on course to attract about 42 million visitors for the full year – some way behind the more than 55.9 million visits in pre-pandemic 2019.

New experiences

Echoing a global trend, the travel preferences of visitors to Hong Kong have also changed. Where once a high proportion of visitors travelled to Hong Kong to experience its renowned luxury retail and glitzy nightlife, tourism chiefs note that visitors are now seeking travel experiences that go beyond shopping and dining.

To reinvigorate the tourism sector, exploring local characteristics has become a key focus for Hong Kong’s tourism industry. For example, the HKTB has been promoting local neighbourhoods such as Old Town Central to visitors seeking immersive cultural experiences.  At the same time, the government has allocated HK$1.1bn (US$141m) to promote activities that have the potential to engage visitors with unique and authentic local experiences such as hiking, cycling and trail running.

Multi-faceted tourism strategies have also been rolled out to offer more diverse experiences by combining sports competitions with meetings, incentives, conferences and exhibitions, and linking them to tourism offerings such as theme parks and in-depth tours to museums and the West Kowloon Cultural District.

Hong Kong is also expected to host more than 200 'mega events' – a term coined by the government to include anything from trade fairs to summits and sporting events – by the end of 2024. The HK$30bn (US$3.84bn) Kai Tak Sports Park is set to open during the first quarter of 2025 – with British rock band Coldplay expected to be its opening act – is expected to add another dimension to Hong Kong’s sporting and entertainment attractions, demonstrating that the answer to refreshing Hong Kong’s tourism sector is not simply black and white.