Hong Kong wants more smiles for tourists but prices and Shenzhen are bigger issues, experts warn

Hong Kong is asking service workers to be more courteous and smile in a bid to win back tourists. But high prices and competition from an ascending Shenzhen are bigger issues, experts say. 

Long revered for its luxury shopping, restaurants and nightlife, the glitzy financial hub has yet to see visitor numbers recover to levels seen prior to years of disruptions from social unrest and the Covid-19 pandemic.

In response, the Hong Kong government launched a campaign – titled "Let's Go the Extra Mile" – encouraging frontline staff and members of the public to demonstrate good hospitality and "reinforce Hong Kong's brand as the best tourism destination."

Speaking at a press conference last week, Chief Executive John Lee urged residents to be more courteous, to smile more and to "go the extra mile to promote Hong Kong's hospitality."

The initiative comes after data showed 24 million total visitor arrivals in the first four months of the year, still at only 60% of the level from the same period in 2019. 

Though those numbers marked a significant increase from the previous year, experts warn that full recovery faces greater barriers than grumpy Hong Kongers.

"One of the biggest problems for the city is simply that we're expensive," said Allan Zeman, chairman of Lan Kwai Fong Group, the major property owner and developer in Hong Kong's iconic Lan Kwai Fong nightlife district.

Hong Kong's currency is pegged to the U.S. dollar, which has helped the city's status as an international financial center. However, this can also make it pricey compared to many other Asian economies, especially now amid high interest rates and a strong U.S. dollar.

"Tourists are finding that other places like Shenzhen and Japan are very, very cheap in comparison,"