Hong Kong’s Christmas Travel Surge Boosts Cross-Border Trips but Leaves Restaurants Struggling-What You Need to Know!

Published on December 26, 2025

Hong Kong, traditionally one of Asia’s busiest holiday destinations, has seen a mixed bag of results during the Christmas 2025 holiday season. While cross-border travel surged, with over 1.2 million trips made across Hong Kong’s borders, the restaurant sector faced a noticeable 10% sales drop, as local and international dining activity slowed. This shift highlights a significant trend in Hong Kong’s holiday tourism: while hotels and cross-border travel flourished, restaurants are still grappling with the post-pandemic landscape.

Cross-Border Travel Sees a Major Revival

This holiday season marked a strong recovery in cross-border tourism, as 1.2 million trips were made between Hong Kong and mainland China on the first day of the long holiday weekend. The surge in travel reflects a growing trend of tourists eager to return to Hong Kong for leisure after the easing of COVID-19 restrictions. With more people travelling between regions, tourism numbers soared, giving a much-needed boost to Hong Kong’s travel economy.

Hong Kong’s central location and global connections make it a prime spot for both business travel and tourism, especially during the holiday season when many mainland Chinese travellers flock to the city to explore its iconic shopping malls, cultural landmarks, and entertainment hubs. The holiday travel surge highlighted the region’s role as a key transit point for both regional and international tourists.

For tourists, cross-border trips during Christmas not only offered access to Hong Kong’s shopping, dining, and entertainment offerings, but also to some of mainland China’s famed destinations. With easier travel between Hong Kong and its neighboring regions, it is clear that the region’s travel infrastructure is well-positioned to welcome tourists back.

A Decline in Restaurant Sales: What Happened?

While cross-border travel boomed, the restaurant industry in Hong Kong struggled to attract diners this Christmas. Reports indicate that restaurant sales dropped by approximately 10% over the holiday period. Industry experts suggest that while tourism numbers were up, local dining habits have shifted, with many opting to travel rather than dine out.

The trend could be attributed to several factors:

• Rising interest in tourism outside dining: With more people coming into Hong Kong from mainland China and abroad, many tourists may have chosen to explore the city’s attractions rather than focus on dining experiences.
• Busy travel schedules: Tourists who had crossed the border to visit Hong Kong were likely more inclined to explore famous landmarks, attend events, or enjoy local shopping, which took precedence over sitting down for meals at restaurants.
• Increased competition: With the growing popularity of food delivery services and street food options in Hong Kong, many opted for more casual, affordable dining experiences rather than fine dining.

Despite the high tourist influx, restaurants, particularly in the high-end dining sector, found it challenging to sustain demand in a competitive environment.

Hotels Thriving Amidst the Travel Surge

While restaurants experienced challenges, hotel occupancy rates were extremely high, with one major hotel group reporting a 90% occupancy rate across its properties. Hotels in central areas, particularly those with river views or those located near shopping districts, enjoyed strong demand as tourists sought comfortable stays after long days of sightseeing and shopping.

This is not surprising given the increase in cross-border travel, which tends to correlate with higher demand for luxury accommodations. Visitors, particularly those from mainland China, often choose luxury hotels for their proximity to high-end shopping malls, tourist attractions, and the vibrant nightlife that Hong Kong offers. Additionally, hotels’ New Year’s Eve packages, which often include fine dining and entertainment, are a major draw for international and local tourists alike.

For tourism operators, the sustained high occupancy rates and premium hotel bookings during this festive period signal the ongoing recovery of Hong Kong’s hospitality sector, despite the challenges faced by restaurants. Hotels continue to be an essential part of the city’s tourism infrastructure, attracting visitors from all over the world.

The Future of Hong Kong’s Travel and Tourism Landscape

Looking ahead, Hong Kong’s tourism sector will continue to be shaped by both strong cross-border travel and evolving consumer preferences. The holiday season provided key insights into how travel habits are shifting in the post-pandemic era. Tourism numbers are strong, yet the way people choose to spend their time—whether exploring the city’s shopping, entertainment, or sightseeing options—will play a major role in how different sectors of the travel and hospitality industry perform.

While restaurants may be experiencing a dip, there’s potential for innovation in the industry. Restaurants could adapt by offering unique dining experiences, focusing on local ingredients, and integrating travel and cultural experiences that appeal to both local residents and international visitors. This could help the restaurant sector bounce back and take full advantage of the growing number of international visitors.

In the meantime, the hotel sector remains resilient, catering to the influx of visitors who are eager to enjoy the vibrancy of Hong Kong and its surrounding areas. As cross-border tourism continues to rise, hotels and other accommodations will play a vital role in accommodating the demand for luxury and comfortable stays.

A Mixed Bag for Hong Kong’s Travel Sector This Christmas

As cross-border travel hit 1.2 million trips, the Hong Kong tourism industry saw both challenges and successes this holiday season. Restaurants faced a drop in sales, but hotel occupancy rates soared, reflecting strong demand in the hospitality sector. This holiday season provides a valuable snapshot of the future of Hong Kong’s travel landscape, offering insights into changing consumer habits, the shifting focus on experiences, and the city’s ongoing recovery post-pandemic.

Despite challenges in the restaurant sector, Hong Kong’s tourism economy remains buoyed by the continued demand for luxury hotels and experiences that combine culture, shopping, and sightseeing. As the region’s tourism market continues to grow, adapting to these new dynamics will be key for businesses looking to thrive in this changing landscape.