HONG KONG: RESUMING THE JOY OF TRAVEL
With covid gradually fading into the past and borders reopened, our latest New Normal* data (collected in April) show that 30% of Hong Kongers travelled outside of the Territory in the three months to April. This proportion will increase swiftly, as 50% of our survey respondents claim they will likely travel outside of Hong Kong in the next six months.
By and large, post-covid travel has taken place within Hong Kong’s vicinity, with Japan, China mainland, Taiwan and Macau the main beneficiaries of Hong Kongers’ desire to venture beyond the Territory after the pandemic (see Figure 1).
Leisure is and will continue to be the main motivation for Hong Kongers to take to the road: 81% of those who travelled in the previous three months did so for pleasure, as will 84% of those who intend to travel in the next six months. Shopping at duty-free was part of the travel experience for more than half (53%) of those who travelled in the past three months, particularly for women (60%).
Shopping is likely to grow going forward, with two-thirds (65%) of those who intend to travel in the next six months likely to purchase at duty-free stores.
FINANCIAL WORRIES KEEP MILLENNIALS AT HOME
Financial constraints were the main reason to stay home for the 20% of Hong Kongers who did not travel in the previous three months and are not planning to do so in the coming six months, either. Lingering concerns about covid in the confined space of an airplane or at hotels, and lack of clarity about restrictions at some destinations are additional barriers to travel (see Figure 2).
Millennials have been particularly cautious about travel: just over one third(35%) of this cohort plan to travel in the next six months, compared to 50% among the wider Hong Kong population. Financial concerns are particularly pressing for Millennials, 70% saying they need to be careful with their money, compared to 57% among everyone else.
Millennials are being careful with their money in other ways as well, one in three delaying product/ service upgrades or extending the life of items (35%), cutting down on eating out (35%), and limiting social and entertainment activities (32%). Raising a young family, paying a mortgage and perhaps taking care of elderly parents are likely to strain Millennials’ personal and household finances.
(*) Ipsos Hong Kong New Normal Tracker monitors changes in consumer sentiment and behaviour in response to the dynamic environment of Hong Kong SAR. Data were collected monthly between April 2020 and June 2021, and quarterly thereafter. Additional markets/ questions available upon request.
