Absence of New Year’s Fireworks Threatens Hong Kong’s Tourism and Retail, Get the Details Here

Published on December 27, 2025

The tourism industry in Hong Kong saw a small surge in the number of visitors during Christmas, registering 404,559 inbound visitor arrivals from December 24 to 26, a 10% increase from the previous year. As per government figures, the surge in tourism was backed by arrivals from mainland China, in addition to other countries, with the latter accounting for 261,526, a 6% increase. On the other hand, other countries recorded 143,033 arrivals, up 16% from 2024. This surge in tourism in Hong Kong is an indication of the festive spirit of Christmas, which is more vivid in Hong Kong compared to the countries of origin for visitors from countries such as Southeast Asia, in addition to Japan.

Outbound Travel Surge as Hongkongers Head North
While inbound tourism saw positive growth, outbound travel from Hong Kong also surged during the festive season, with almost 1.7 million outbound trips recorded, reflecting a 22% increase from last year. Many Hong Kong residents took advantage of the long holiday period to travel, primarily heading to mainland China. Nearly 90% of these outbound trips were made via cross-border control points, especially Lo Wu and Lok Ma Chau Spur Line, which saw increases of 17% and 12% respectively compared to the previous year.

The strong growth in outbound tourism underlines a continuing trend among Hongkongers to spend their holidays in mainland China. Popular destinations include regions like Guangxi, Fujian, and Yunnan, with high-speed rail journeys gaining particular popularity. Timothy Chui Ting-pong, executive director of the Hong Kong Tourism Association, noted that outbound tour group sales were up 10% compared to last year, driven by the improving economic conditions in Hong Kong and the longer holiday period.

The surge in outbound tourism also impacted domestic retail and hospitality sectors, as many Hongkongers opted to spend their holidays abroad rather than in the city, reducing domestic consumption and foot traffic in local shops and restaurants.

Impact of the Absence of New Year’s Eve Fireworks on Tourism
A major point of concern for both tourists and local businesses in Hong Kong is the cancellation of the New Year’s Eve fireworks display at Victoria Harbour. The iconic fireworks show is one of the highlights of Hong Kong’s annual celebrations and traditionally attracts large crowds of both local and international tourists. Its absence this year has led to concerns within the tourism industry, particularly in the retail sector, which relies on the festive influx of shoppers.

Retail lawmaker Peter Shiu Ka-fai expressed concern that the cancellation, coupled with the lingering effects of the Tai Po fire tragedy, could lead to a further dip in consumer spending. The fire, which resulted in at least 161 deaths, has left a somber mark on the city and has likely influenced consumer sentiment over the past few weeks. Shiu noted that while sales of essential items like cosmetics had been relatively strong, overall Christmas retail performance had fallen short of expectations when compared to last year.

Retail Sector Faces Mixed Results Amid Visitor Growth
Despite the challenges, the holiday period was not entirely disappointing for Hong Kong’s retail and hospitality sectors. Large hotels and premium accommodations reported occupancy rates of 90% or higher, particularly in popular tourist areas. Alan Chan Chung-yee, Chief Operations Officer of the Miramar Group, and Jack Cheung Ki-tang, Director of CTS HK Metropark Hotels Management, both indicated that their properties had strong performance, with occupancy rates maintaining high levels.

Restaurants also showed resilience, with Simon Wong Kit-lung, Chairman of the LH Group of restaurants, reporting sales similar to those in previous years, despite more residents heading abroad. Wong noted that shopping malls remained busy, particularly in tourist hotspots, and that many of his restaurants had long queues even after 9 pm, a sign that tourists were still enjoying the city’s vibrant dining scene.

Southeast Asia and Japan Drive Growth in Inbound Tourism
The increase in inbound visitors during the Christmas period can be largely attributed to tourists from Southeast Asia and Japan. Southeast Asian visitors were drawn to Hong Kong’s more festive atmosphere, which was considered more lively than the celebrations in their own countries. Meanwhile, Japanese tourists were attracted by the popularity of the martial arts film Twilight of the Warriors: Walled In, which featured the Kowloon Walled City—a landmark that has been demolished but remains a significant cultural icon in the minds of many Japanese moviegoers.

This rise in visitors from these regions demonstrates Hong Kong’s continued appeal as a regional tourism hub and a destination for diverse cultural experiences. The film’s success in Japan, paired with the allure of Hong Kong’s festive activities, underscores the city’s role as a key player in attracting tourists from across Asia.

Challenges and Outlook for Hong Kong Tourism in 2026
Looking ahead to 2026, the Hong Kong tourism sector is likely to face both opportunities and challenges. On the one hand, increased connectivity and continued appeal to visitors from neighboring regions, such as Southeast Asia and Japan, will help sustain tourism growth. However, the absence of signature events like the New Year’s Eve fireworks could deter some visitors, particularly those who associate Hong Kong with its vibrant holiday celebrations.

As Hong Kong moves into the new year, the retail sector will likely continue to adjust to changing consumer behavior, particularly with more Hongkongers opting for outbound travel. The tourism industry will need to adapt by focusing on new, engaging experiences and by promoting year-round tourism to ensure sustained growth.

Navigating the Future of Tourism in Hong Kong
The tourism sector in Hong Kong in the year 2025 has shown a small increase in the number of tourists. There are various challenges facing the tourism industry in the year 2026. On one hand, the attractiveness of Hong Kong as a destination for tourists from Southeast Asia and Japan looks promising in the long run. On the other hand, the lack of large-scale events in Hong Kong and the rising number of outbound tourists might negatively impact the prospect of local businesses in the coming year. In the year 2026, the tourism market in Hong Kong needs to develop new types of experiences and upgrade the value offered to tourists in order to remain in the market.