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Hospitality Industry in Hong Kong Market Size (2024 - 2029)

The market size of the Hong Kong hospitality industry has experienced fluctuations due to various external factors. Initially, the industry saw steady growth driven by an increasing number of international tourists, which boosted occupancy rates and average room prices. However, this positive trend was disrupted by political unrest and the COVID-19 pandemic, which significantly impacted tourist arrivals and revenue. The industry's reliance on tourism made it particularly vulnerable to these challenges, leading to a notable decline in market size during these periods.

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Market Size of Hospitality Industry in Hong Kong

Hospitality Industry in Hong Kong Market Outlook
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 5.70 %

Major Players

Hospitality Industry in Hong Kong Market Major Players

*Disclaimer: Major Players sorted in no particular order

Hospitality in Hong Kong Market Analysis

The hospitality industry in Hong Kong has recorded steady growth with the growing number of tourists from all over the world despite the uncertainty over the US-China trade war and Brexit. The total number of tourist arrivals to Hong Kong rose to a record high of 65.1 million in 2018 which was 11.4% more than the total arrivals it recorded in 2017. The average room rate grew by 9% with an average HK$1,310 per night, whereas the occupancy rate hit the highest of all-time with 92.05% compared with 90.74% in 2017. According to the Hong Kong Hotels Association, the first half of 2019 continued the trend with growing numbers but from the mid of July 2019, the scenario has changed with the rising number of protests all over the country that created Vandalism and disruptions to the major transport infrastructure which affected international conferences, exhibitions, events, etc and resulted in 13% year on year decline in revenue per available room which hit the worst in August 2019. August 2019 witnessed an almost 40% sharpest decline in occupancy rate since the 2003 SARS crisis. The COVID - 2019 is challenging the hospitality industry which greatly depends on the tourism sector. the tourist arrivals to Kong Hong recorded around 70% drop during the first quarter of 2020 amidst the pandemic situation.

Hospitality in Hong Kong Industry Segmentation

A complete background analysis of the Hospitality Industry in Hong Kong, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview is covered in the report.

By Type
Chain Hotels
Independent Hotels
By Segment
Service Apartments
Budget and Economy Hotels
Mid and Upper Mid Scale Hotels
Luxury Hotels
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Hospitality Industry in Hong Kong Size Summary

The hospitality industry in Hong Kong has experienced consistent growth, driven by an increasing influx of global tourists, despite challenges such as the US-China trade tensions and Brexit. The sector saw a significant rise in tourist arrivals, with a notable increase in both average room rates and occupancy rates, reaching historic highs. However, the landscape shifted dramatically in mid-2019 due to widespread protests, which disrupted major events and led to a decline in revenue per available room and occupancy rates. The onset of the COVID-19 pandemic further exacerbated these challenges, resulting in a substantial drop in tourist arrivals and posing significant hurdles for the industry, which heavily relies on tourism.

The Hong Kong hospitality market is characterized by a mix of domestically grown and international hotel brands, with a majority of properties being chain hotels. The Mid and Upper Mid-scale segments dominate the market, while the budget and economy segments remain minimal. Despite the smaller share of domestically grown brands in terms of total hotel properties, they contribute significantly to the room supply. Chain hotels hold a dominant position in the market, with international brands like Marriott International and IHG having a strong presence. Key players such as Harbour Plaza and Regal Hotels International lead in room supply, reflecting the competitive landscape of the industry.

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Hospitality Industry in Hong Kong Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Impact of COVID-19 on Hospitality Industry

    4. 1.4 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors

    5. 1.5 Leading Cities in Hong Kong with Respect to Number of Visitors

    6. 1.6 Investments (Real Estate, FDI and others) in the Hospitality Industry

    7. 1.7 Technological Innovations in the Hospitality Industry

    8. 1.8 Insights on Shared Living Spaces Impact on the Hospitality Industry

    9. 1.9 Insights on Other Economic Contributors to the Hospitality Industry

    10. 1.10 Value Chain Analysis

    11. 1.11 Porter's Five Forces Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Service Apartments

      2. 2.2.2 Budget and Economy Hotels

      3. 2.2.3 Mid and Upper Mid Scale Hotels

      4. 2.2.4 Luxury Hotels

Hospitality Industry in Hong Kong Market Size FAQs

The Hong Kong Hospitality Market is projected to register a CAGR of greater than 5.70% during the forecast period (2024-2029)

Harbour Plaza Hotel Management Limited, Regal Hotels International, Marriott International Inc, InterContental Hotel Group and Dorsett Hospitality International are the major companies operating in the Hong Kong Hospitality Market.

Hospitality Market in Hong Kong Report Snapshots

Hong Kong Hospitality Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)