The aftermath of typhoons in China and rising airfares severely impacted tourist arrivals in Hong Kong in July, resulting in only a 3% growth. The MICE (Meetings, Incentives, Conferences, and Exhibitions) sector and long-haul tourists helped revive the industry, surging 17%, while short-haul tourists plummeted 9% due to pressure from high fuel prices. The Thai Trade Center in Hong Kong warned Thai businesses to prepare for soaring logistics costs and suggested adjusting strategies to target new consumer segments with lifestyle and premium products.
August 26, 2026 – The Thai Trade Center in Hong Kong reports that, according to data from the Hong Kong Tourism Board, the total number of tourists visiting Hong Kong in July 2026 is expected to reach approximately 4.5 million, representing a 3% increase compared to the same period last year. The main factors contributing to this growth are the hosting of international conferences and trade shows, which have stimulated business travel.
Meanwhile, the main market, mainland Chinese tourists, faced a noticeable slowdown, with the number at 3.61 million, representing a mere 3% year-on-year increase, although they still accounted for 80% of all tourists in July.
The main reason was the extremely volatile weather conditions. The Hong Kong Observatory stated that July this year was unusually cloudy and rainy, resulting from a low-pressure trough, strong southerly winds, and the formation of Tropical Storm Maysak and Tropical Storm Noul. This resulted in a cumulative rainfall of 790.3 millimeters for the month, more than double the normal average for July.
However, considering the overall picture for the first seven months of 2026 (January – July), Hong Kong welcomed a cumulative total of 31.22 million tourists, an 11% increase compared to the same period in 2025. This included 24.16 million tourists from mainland China, a 13% increase, and approximately 7.05 million tourists from other countries, a 5% growth.
MICE market – Remote solutions to overcome crisis, defying market downturn of 9%.
Despite natural challenges, a key driver maintaining the viability of Hong Kong's tourism sector is its status as a world-class MICE (Meetings, Incentives, Conventions and Exhibitions) hub. Major events such as the 108th Lions International Convention and the LEAP East technology exhibition in July attracted a large number of international business travelers.
The push into the high-end traveler market resulted in a 17% year-on-year increase in long-haul travelers in July, totaling 307,200 people. Meanwhile, new market segments experienced a dramatic 36% growth, with 69,722 people.
In contrast, the number of short-haul tourists decreased by 9 percent to 413,647 in July, and when considering the first seven months of the year, the short-haul group decreased by 3 percent.
A major contributing factor is the conflict in the Middle East, which has led to continuously rising fuel costs. This has forced airlines to adjust their service models and reduce flights, inevitably putting pressure on the regional travel market.
"Rising fuel costs resulting from the conflict in the Middle East have forced airlines to adjust their flight schedules and put pressure on the region's tourism market."
Boosting the program for the second half of the year, bringing in world-class magnets to revive the industry.
To revitalize the tourism atmosphere in the second half of 2569, the Hong Kong Tourism Board is preparing to accelerate the organization of major international events to attract tourists worldwide. Plans include the Hong Kong Cyclothon, the Wine & Dine Festival, the Hong Kong Winterfest, and New Year's Eve countdown celebrations, as well as leveraging the Mid-Autumn Festival and Halloween in cultural tourism campaigns.
Hong Kong's key objective in the second half of the year is not just to increase the number of visitors, but also to launch campaigns to encourage tourists to explore different neighborhoods within the city, increase average length of stay, and boost per capita spending to compensate for the slowdown in nearby markets.
The Thai Trade Center warns Thai businesses to prepare for a surge in logistics costs and adjust their strategies to target surging purchasing power.
The Thai Trade Center in Hong Kong has analyzed the situation and concluded that the phenomenon sends a crucial signal for Thai businesses to urgently adjust their business strategies, especially in dealing with the changing behavior of Chinese tourists due to unpredictable weather conditions.
Imported goods from Thailand, which previously focused on general fashion items, should shift their focus to practical, durable, and weather-resistant products for everyday use. This includes waterproof items, quick-drying clothing, and portable lifestyle products, catering to modern Chinese tourists who prefer short trips and immediate purchases.
Meanwhile, the growth of long-haul tourists from Europe, North America, and Australia, as well as emerging markets like the Middle East and Latin America, presents a golden opportunity for premium Thai products. These tourists prioritize quality and consumer experience over price, so Thai entrepreneurs should highlight Thai handicrafts, health products, and food items with unique stories or characteristics to create added value.
Regarding transportation issues, the Thai Trade Center in Hong Kong warns that Thai businesses must carefully manage logistics costs, as rising airline costs could directly impact air freight rates. They also suggest considering using warehouses in Hong Kong as distribution centers for nearby markets to reduce risk and improve inventory management flexibility.
Furthermore, global events in the second half of the year will be important platforms for Thai businesses to participate in, including trade shows, business matching, and brand building through online channels alongside physical stores. This aims to attract purchasing power from diverse tourist groups and maintain the long-term competitiveness of Thai products in the Hong Kong market.
Read news related to All Asian economic situations can be found here.
